Cyprus introduces uniform rules for instant transfers in euros

On June 5, the Parliament of the Republic of Cyprus adopted important legislative initiatives aimed at modernizing the country's financial sector and strengthening trust in the banking system. The new regulations concern both instant transfers in euros throughout the European Union and tightening anti-money laundering rules, including cryptocurrency transactions.

Instant transfers in euros: now faster, more transparent and safer

The new law obliges banks and payment systems to carry out money transfers around the clock, in just a few seconds. This will be possible thanks to a unified verification system and new transparency requirements. Key provisions:

• 24/7 transfers: all financial institutions must process transfers instantly, regardless of the time of day or weekend.
• Uniform tariffs: uniform rates are set for standard and instant transfers - no hidden surcharges.
• Informing clients: banks are required to notify users in advance about recipient verification procedures.
• Transparency of fees: fees will now be clearly stated, without the "fine print".
• Penalties for violations: serious fines and other measures are provided for failure to comply with the new rules.

Key dates for the transition

The transition to the new instant transfer system will be gradual. Banks in Cyprus began accepting such transfers as early as January 9, 2025. Then, starting from October 9, 2025, all banking institutions will be required not only to accept, but also to instantly send transfers - with mandatory verification of the recipient. The final stage will be April 9, 2027 - it is from this date that the new rules will also apply to non-bank payment providers, which will ensure a single standard of financial transactions across the entire sector.

Tightening measures to combat money laundering and regulating the crypto market

In addition to the transfer reform, the Cyprus Parliament amended the main law on combating money laundering. The updates concern not only the traditional sector, but also operations with digital assets.

Major changes:

• Strengthened control by the Central Bank: supervision of financial institutions is strengthened, including compliance with customer identification procedures.
• Control over cryptocurrencies: all operations with crypto assets are now checked for compliance with the law.
• Clarification of the list of violations: clarity has been introduced in the interpretation of financial offenses related to money laundering.
• Registration of crypto services in CySEC: companies registered in the register of the Cyprus Securities and Exchange Commission are subject to control.

These changes are aimed at protecting consumers in the context of the active development of digital finance and serve as an important step towards international financial transparency.

The legal and regulatory environment in the EU is changing rapidly, and it is important to be one step ahead. IT-OFFSHORE will always help you navigate the changing legislation and build your business taking into account all the new requirements. We monitor trends, analyze risks and help companies adapt to the modern realities of the financial market.