KYC procedures in Cyprus banks: what questions will compliance officers ask in 2026?

In 2026, the Cypriot banking system operates under extremely strict compliance requirements, dictated by the entry into force of the 6th EU Anti-Money Laundering Directive (6AMLD) and the introduction of the unified European AMLR regulation. For investors and expats, the KYC (Know Your Customer) procedure has ceased to be a formality and has evolved into a thorough audit of their financial background. Today, compliance officers don’t simply collect documents; they analyze the rationale for capital formation and the economic feasibility of operations on the island. Understanding the regulatory framework and requirements is key to successfully opening an account and smoothly conducting real estate transactions.

Key KYC Milestones in 2026: Digital Transformation

In 2026, most Cypriot banks, including Bank of Cyprus, Hellenic Bank, and Eurobank, switched to a hybrid verification model. The initial stage is often conducted remotely using the EU Digital Identity Wallet and eIDAS 2.0 systems. This allows for instant verification of identity and residential address. However, for large investors and transactions over €100,000, an in-person interview or extended video conference with a compliance officer remains mandatory.

A package of standard documents for identification

Before we get into the complex issues, you should prepare a basic package, which in 2026 includes:

1. International passport (high-resolution scanned copy or biometric data).
2. Proof of residential address (utility bill or bank statement dated no more than 3 months ago).
3. Individual Tax Identification Number (TIN) of the country of tax residence.
4. A detailed curriculum vitae (CV) in English outlining your professional history and sources of income over the past 10–15 years.

Question Block #1: Economic Profile and Goals

The first set of questions is aimed at understanding why you need an account in Cyprus. In 2026, banks will actively crack down on transit accounts, so you must prove your connection to the island (substance).

Typical questions from a compliance officer:

• What is the main purpose of opening an account (purchase of real estate, payment for education, investment in securities, obtaining residency status)?
• Do you plan to transfer the center of vital interests to Cyprus in 2026?
• What is the expected annual turnover of the account (incoming and outgoing payments)?
• From which countries and from which counterparties will the funds be received?
• What is the maximum size of a one-time incoming transfer?

Question Block #2: Source of Funds

This section concerns the specific amount you plan to deposit into an account or use to purchase assets. It’s important for the compliance officer to track the money’s path from the moment it’s generated to the moment it reaches the bank.

Questions about the origin of the transaction:

• What is the specific source of funds for this transfer (salary, sale of real estate, dividends, IPO)?
• Can you provide a purchase and sale agreement for the asset that provided the funds?
• Has this amount been taxed in the country of origin of the income? (Banks are increasingly requesting tax returns for the past 1-2 years.)
• If the funds were received as a gift, what is the relationship with the donor and what is his source of income?

Question Block #3: Source of Wealth

In 2026, the focus shifted from verifying a single transaction to verifying the client’s entire capital (Source of Wealth). The bank wants to ensure that your overall standard of living and accumulated wealth are consistent with your stated activities.

Comparison chart of income verification requirements

Specifics of PEP verification and sanctions compliance

If you or your immediate family members held public office in the last 12 months, you fall into the PEP (Politically Exposed Person) category. In 2026, this means automatic application of the Enhanced Due Diligence (EDD) procedure. Compliance will review not only your income but also the income of your family members, as well as any business ties to the public sector.

Also in 2026, banks will use automated real-time screening systems. Any match between a name and sanctions lists (EU, UN, OFAC) will result in immediate blocking of the account opening process until a detailed investigation is conducted.

How to Successfully Pass an Interview: Expert Advice

To minimize the risk of rejection in 2026, follow these rules:

1. Be proactive: Don’t wait for documents to be requested, provide a logical justification for each large sum in advance.
2. Maintain consistency of information: The information on your CV must match exactly with the information on your tax returns and bank statements.
3. Explain complex structures: If you use trusts or holdings, provide a clear ownership structure showing ultimate beneficial owners (UBOs) with an ownership stake greater than 10% (the 2026 norm is often lower than the standard 25%).
4. Prepare translations in a timely manner: All documents must be translated into English or Greek by accredited translators and certified with an apostille if required for documents from non-EU countries.

FAQ: Frequently Asked Questions

Why does the bank request a CV when opening a personal account?

In 2026, a CV will be a mandatory element of a client’s economic profile. The bank needs to understand that your professional experience (for example, 15 years in the IT industry) logically explains your savings of €500,000. A discrepancy between your education, work experience, and income will raise suspicions of the use of shell companies.

Do Cyprus banks accept funds received from the sale of cryptocurrency?

Yes, but subject to strict MiCA regulations. You must provide a full transaction trail: from the purchase of cryptocurrency with fiat to its sale on a licensed exchange (CASP). Banks are extremely reluctant to accept funds processed through decentralized exchanges (DEXs) without identity verification or through “mixers.”

How long does the KYC process take in 2026?

For individuals residing in the EU or low-risk countries, initial compliance can take 3 to 5 business days thanks to digital tools. For non-EU residents (high-risk third countries), the process takes 2 to 4 weeks, as it requires a more thorough verification of submitted documents through international databases.

Can the bank close my account if I don’t answer the compliance questions on time?

Absolutely. In 2026, banks will be required to conduct regular monitoring of existing accounts (Ongoing Monitoring). If you ignore requests for updated information (for example, a recent tax return) within 30 days, the bank has the right to restrict access to online banking and then unilaterally close the account.

What questions are asked when purchasing real estate using a loan?

In this case, KYC is conducted twice: for account opening and for loan approval. In addition to the standard questions, questions will be asked about your debt burden in other countries, the stability of your current income, and the availability of liquid collateral. The bank will also check your DTI (Debt-to-Income) ratio, which by 2026 should generally not exceed 35-40% for non-residents.