CySEC Steps Up AML Consultations As EU Rules Tighten

by THEFUTURE.TEAM

February 17, 2026

Regulatory Shift In Focus

The Cyprus Securities and Exchange Commission (CySEC) has issued a new circular informing regulated entities about recently launched public consultations by the Anti-Money Laundering Authority (AMLA). The notice applies to a wide range of market participants, including Cyprus investment firms, administrative service providers, UCITS management companies, alternative investment fund managers and crypto-asset service providers, highlighting a notable shift in the supervisory landscape.

Consultations On Draft Regulatory Technical Standards

AMLA has opened public consultations on draft Regulatory Technical Standards prepared under the European Union’s updated anti-money-laundering framework. The proposals focus on several core areas:

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Business relationships: Draft standards under Article 19(9) set out criteria for establishing and maintaining business relationships, including rules for occasional and linked transactions and the introduction of lower reporting thresholds.
Customer due diligence: Under Article 28(1), the standards provide detailed guidance on customer identification and verification procedures, aiming to strengthen transparency during client onboarding.
Pecuniary sanctions and enforcement: Draft provisions under Article 53(10) address the handling of breaches, administrative penalties, and periodic penalty payments, reinforcing the enforcement architecture introduced by AMLD6.

Timelines And Participation

Clear deadlines have been set for stakeholder feedback. Comments on proposals concerning business relationships and customer due diligence are due by 8 May 2026, while responses related to enforcement measures must be submitted by 9 March 2026. An online public hearing dedicated to business relationships and due-diligence requirements is scheduled for 24 March 2026, with additional logistical details to be announced by AMLA.

Broad Implications And Strategic Developments

AMLA is encouraging participation from both financial and non-financial stakeholders, marking a more inclusive approach than earlier consultations led by European supervisory bodies. The authority stresses that early engagement will be particularly important for refining verification procedures, adjusting transaction-monitoring thresholds and ensuring smooth alignment with the evolving EU enforcement regime.

A Forward-Looking Governance Framework

In parallel, AMLA has unveiled its first multi-year strategic plan for 2026–2028, outlining the transition from a start-up phase to full operational capacity. The roadmap includes completion of the EU Single Rulebook, stronger supervisory convergence among member states, deeper cooperation between Financial Intelligence Units and a significant expansion of internal capacity, with staffing expected to grow from about 120 employees in late 2025 to more than 430 by the end of 2027

Conclusion

CySEC’s circular, together with AMLA’s strategic direction, points to a comprehensive strengthening of the EU anti-money-laundering framework. For Cyprus-based regulated entities, participation in these consultations represents both a compliance responsibility and a practical opportunity to help shape the standards that will guide future operational and reporting practices across the financial sector.

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AI Spending Is Complicating The Fed’s Fight Against Inflation

by News Editor

August 12, 2026

Silicon Valley leaders have long argued that artificial intelligence will make technology and services dramatically cheaper. OpenAI CEO Sam Altman has described a future where intelligence becomes extremely inexpensive, while Tesla and SpaceX CEO Elon Musk has predicted that AI and robotics will create greater abundance and drive down costs.

So far, those benefits have yet to materialise at scale. AI adoption remains relatively slow, while the enormous investment needed for data centres and AI infrastructure is putting pressure on electricity prices, supply chains and other costs. For the Federal Reserve, this creates a difficult balancing act: AI could eventually boost productivity and reduce inflation, but its current buildout is contributing to higher prices.

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OpenAI chief economist Ronnie Chatterji said AI needs to be adopted by organisations and generate measurable value before its broader economic impact becomes visible in productivity statistics.

AI Adoption Remains Uneven

Capital spending on AI infrastructure in the U.S. is expected to reach $581 billion this year, according to Goldman Sachs Research, with global investment potentially reaching $1 trillion.

Despite the scale of spending, adoption remains far from universal. A May survey by the U.S. Census Bureau found that 17% to 20% of U.S. businesses reported using AI, with adoption significantly higher among large companies.

Companies that have implemented AI at scale also highlight the challenges. Julie Averill, former CIO of Lululemon, said successful deployment requires changes in employee behaviour and trust in the technology. OpenAI has observed a similar divide: its most advanced business users deploy AI at around eight times the rate of average companies.

Why Productivity Gains May Take Time

Economists point to the limits of automation. AI can perform individual tasks effectively, but many jobs combine tasks that are difficult to automate.

Stanford professor Charles Jones refers to these as “weak links”. Radiology, for example, involves interpreting scans but also communicating with patients and working with colleagues. AI can automate part of the job without eliminating the profession itself.

As a result, the full economic impact of AI may not become clear until businesses adopt the technology more broadly and reorganise their operations around it.

AI Adds To The Fed’s Policy Challenge

AI’s economic impact has become part of the Federal Reserve’s policy debate. Fed Chairman Kevin Warsh has argued that AI could eventually become a significant disinflationary force by increasing productivity and strengthening U.S. competitiveness.

Other officials are more cautious. In July, the Fed kept interest rates at 3.5% to 3.75%, while some officials expressed concern that AI infrastructure spending could add to inflationary pressures.

Minneapolis Fed President Neel Kashkari pointed to massive data-centre investment as a new source of demand. Household electricity prices rose 10% in the two years through July, compared with a 6.2% increase in overall consumer prices. Meanwhile, shortages of chips and other AI components are pushing up costs. JPMorgan Chase estimates that DRAM prices could rise 400% by the end of 2026 compared with 2024.

Warsh has consequently adopted a more cautious tone, saying that while AI investment is laying the groundwork for future growth, the timing and scale of its economic effects remain difficult to predict.

For the Fed, the challenge is clear: AI could eventually deliver major productivity gains, but the cost of building that future is already showing up in the economy.

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