Cyprus Country Summary

FATF Status

Cyprus is not currently on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Cyprus was undertaken in 2025. According to that Evaluation, Cyprus was deemed Compliant for 16 and Largely Compliant for 22 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 3 of the Effectiveness & Technical Compliance ratings.

Crime and corruption remain significant challenges in Cyprus, with widespread public perception of corruption affecting both the public and private sectors. Despite having a robust anti-corruption framework, many citizens feel personally impacted by corruption in their daily lives, and high-profile cases have highlighted vulnerabilities in areas such as banking, public procurement, and land administration.

The criminal landscape is marked by the presence of organized crime groups involved in various illicit activities, including human trafficking, drug trafficking, and smuggling. The influence of these groups extends to public officials, undermining governance and public trust, while the justice system faces threats from violent criminal actors, complicating efforts to maintain law and order.

Cyprus, strategically located at the crossroads of Europe, Africa, and Asia, boasts a favorable investment climate as the easternmost member of the European Union and a member of the eurozone. The Republic of Cyprus actively encourages foreign direct investment (FDI) across various sectors, including traditional industries like shipping and tourism, as well as emerging fields such as energy and technology, bolstered by significant hydrocarbon discoveries in its Exclusive Economic Zone. Despite geopolitical challenges, the Cypriot economy demonstrated resilience with a GDP growth of 3.4% in 2024, outperforming many of its eurozone counterparts, while the government maintains a transparent and investor-friendly legal framework, although foreign investors should remain aware of specific restrictions and the complex political landscape, particularly in the northern part of the island administered by Turkish Cypriots.