**CySEC Calls on Cyprus Firms to Participate in EU AML Risk Rules Hearing**
The Cyprus Securities and Exchange Commission (CySEC) has encouraged regulated entities in Cyprus to participate in a public hearing organized by the Anti-Money Laundering Authority (AMLA) regarding new European Union (EU) rules aimed at assessing risks related to money laundering and terrorist financing. The hearing is scheduled for Thursday, September 10, 2026, from 10 AM to noon Central European Time, with registration closing at 10 AM on the same day.
This public hearing will focus on draft Regulatory Technical Standards (RTS) being developed by AMLA under Article 40(2) of the EU’s Anti-Money Laundering Directive. The proposed standards are designed to establish a uniform methodology for evaluating the inherent and residual risk profiles of businesses that fall under EU anti-money laundering regulations, particularly in the non-financial sector.
The methodology aims to assist regulators in determining the level of exposure a business may have to money laundering and terrorist financing risks, both before and after accounting for the risk management measures that the business has implemented. The distinction between inherent risk, which refers to the risk level associated with a business's activities, and residual risk, which is the remaining risk after controls are applied, is crucial. A business may engage in high-risk activities but may also have robust internal controls that significantly mitigate its exposure.
AMLA has indicated that these draft standards are part of an effort to promote a consistent, proportionate, and effective approach to risk-based supervision across EU member states. The public consultation aims to gather input on how the risk profiles of obliged entities—businesses and professionals required to comply with EU anti-money laundering and counter-terrorist financing regulations—should be assessed and classified.
The hearing will provide stakeholders with an opportunity to discuss the proposed methodology directly with AMLA representatives before the standards are finalized. Key topics for discussion include the relevance and proportionality of the data that businesses will need to provide, the treatment of smaller entities with fewer resources, and the practicality of the proposed reporting framework.
The data points that businesses will be required to submit are critical, as they will form the basis for assessing their exposure to money laundering and terrorist financing risks. AMLA is also considering how the proposed framework can accommodate smaller businesses, which often have less complex operations and may lack the resources of larger entities. Additionally, the feasibility of the reporting system will be evaluated, allowing businesses to provide feedback on the practicality of the proposed requirements.
CySEC has strongly recommended that regulated entities attend the hearing, characterizing it as a valuable opportunity for direct engagement with AMLA regarding the proposed methodology. Participation in the hearing is limited to registered individuals, and those who register will receive an access code and instructions via email. Given the limited availability of places, AMLA has advised stakeholders to register early to secure their participation.
The draft standards are part of a broader EU initiative to establish a more harmonized approach to combating money laundering and terrorist financing across member states. For businesses affected by these regulations, the eventual rules could significantly influence how they assess their exposure to financial crime risks, the information they are required to report, and how supervisory authorities evaluate the effectiveness of their risk management controls.
CySEC’s call to action presents an opportunity for firms to voice their opinions on the proposed methodology, particularly regarding the proportionality of the requirements in relation to the size and nature of their operations. As the deadline for registration approaches, regulated entities are encouraged to consider the implications of these new rules and to participate in shaping the future of anti-money laundering practices within the EU.