The Cyprus Securities and Exchange Commission (CySEC) has urged regulated entities to take part in an Anti-Money Laundering Authority (AMLA) public hearing on new EU rules for assessing money laundering and terrorist financing risks.

The hearing will take place on Thursday, September 10, 2026, from 10am to noon Central European Time, with registration closing at 10am on the same day.

The hearing concerns draft Regulatory Technical Standards (RTS) being developed by AMLA under Article 40(2) of the EU’s Anti-Money Laundering Directive.

The standards are intended to establish a common methodology for assessing the inherent and residual risk profile of businesses covered by EU anti-money laundering rules in the non-financial sector.

In simple terms, the methodology is designed to help regulators determine how exposed a business is to money laundering and terrorist financing risks before and after taking account of measures it has in place to control those risks.

The distinction between inherent and residual risk is important because a business may operate in an activity that carries relatively high risks but have strong internal controls that significantly reduce the remaining exposure.

AMLA said the draft standards were intended to support a consistent, proportionate and effective approach to risk-based supervision across the EU.

The proposed methodology is being developed as part of AMLA’s public consultation on how the risk profiles of obliged entities in the non-financial sector should be assessed and classified.

“Obliged entities” refers to businesses and professionals that are subject to EU anti-money laundering and counter-terrorist financing requirements and are therefore required to identify and manage relevant risks.

The public hearing will give stakeholders an opportunity to discuss the proposed methodology directly with AMLA before the standards are finalised.

Among the issues open for discussion are whether the data that businesses would have to provide are relevant and proportionate, how smaller entities should be treated and whether the proposed reporting framework would be practical to implement.

The data points are significant because the methodology will depend on information supplied about businesses and their activities to assess their exposure to money laundering and terrorist financing.

AMLA is also considering how the framework can take account of smaller businesses, which may have fewer resources and less complex operations than large entities.

The operational feasibility of the reporting system will likewise be examined, with businesses able to provide feedback on whether the proposed requirements can realistically be implemented.

CySEC recommended that regulated entities attend the hearing, describing it as an opportunity to engage directly with AMLA on the proposed methodology.

The hearing is open only to registered participants, the announcement mentioned.

Registered participants will receive an individual access code and instructions by email after registering, while places are limited and AMLA has encouraged stakeholders to register early.

The draft standards form part of the wider EU effort to create a more harmonised approach to combating money laundering and terrorist financing across member states.

For businesses covered by the framework, the eventual rules could affect how they assess their exposure to financial crime risks, the information they report and how supervisory authorities evaluate the effectiveness of their controls.

CySEC’s recommendation therefore gives affected firms an opportunity to comment on the methodology before it is finalised, particularly on whether the proposed requirements are proportionate to the size and nature of their operations.