Cyprus is facing a sharper, more complex anti-money laundering workload as crypto-asset firms and cross-border financial services drive a surge in suspicious transaction reporting, according to the island’s annual assessment of financial intelligence activity.
Crypto Activity Dominates The Reporting Landscape
The country’s financial intelligence unit, Mokas, received 24,092 suspicious transaction and activity reports in 2025, a volume shaped largely by the rapid expansion of crypto-asset services and firms operating across borders under the European Union’s freedom to provide services framework.
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Crypto-asset service providers accounted for 20,570 reports, by far the largest share of submissions. Investment firms followed with 980 reports, underscoring the influence of Cyprus-licensed businesses serving clients throughout the European market.
Domestic entities also stepped up their reporting. Local firms submitted 1,183 reports, up 16% from 2024. Among traditional reporting sectors, banks led with 597 filings, followed by payment institutions with 340 and gambling service providers with 136. Lawyers submitted 33 reports, company service providers 32 and accountants 28.
What Triggered The Alerts
The assessment identified virtual asset transactions, suspected use of money mules, dealings between unrelated counterparties, internet fraud, cybercrime and indicators of money laundering as the most common red flags prompting reports.
Mokas said the overall quality of reporting improved during the year, supported by more useful financial intelligence being passed to law enforcement and higher levels of assets frozen in both domestic and cross-border cases. The unit credited the improvement to more targeted guidance, training sessions, support meetings and ongoing engagement with businesses and professionals.
That effort was reinforced through Cyprus’ anti-money laundering and counter-terrorist financing private-public partnership, which tailored guidance to the specific risks facing different sectors.
Quality Still Matters As Much As Volume
Despite the progress, officials said further improvement is needed. Some reports were still undermined by weak explanations of why a transaction or activity appeared suspicious, missing supporting documentation and incomplete details about the entities involved.
In total, 185 reports were rejected at the initial stage because of technical failures, including narrative-length issues and missing attachments or client identification information.
CySEC urged regulated entities to review the assessment carefully and continue strengthening their suspicious transaction reporting. The regulator said the value of financial intelligence depends not only on how much is submitted, but on whether it can be analysed quickly and used effectively in criminal investigations and asset tracing.
Law Enforcement Gains And Asset Freezes
Beyond the volume of reports received, Mokas disseminated financial intelligence 572 times to law enforcement bodies and state departments. Of those, 469 were sent to the police and 58 to the tax department.
The unit also said domestic freezing orders covered assets worth more than €10 million in criminal investigations, including more than €8 million in immovable property and about €617,340 in crypto-assets. In cases involving international cooperation, foreign freezing orders registered under mutual legal assistance requests totalled approximately €17.12 million, while total asset confiscations exceeded €6.5 million.
A Growing Compliance Challenge
The report highlights the mounting pressure on Cyprus’ financial intelligence system as digital finance expands and cross-border activity increases. The message from authorities is clear: the number of reports matters, but their usefulness matters more.
Mokas said improving reporting is an ongoing process that requires sustained commitment from regulated entities, professionals and public authorities alike.
