A regulated Cyprus-based E-Money Institution (EMI) has been fined €350,000 by the Central Bank of Cyprus following an AML compliance examination covering the 2020 financial year. The sanction, now under judicial review, constitutes a confirmed supervisory finding in the core area of anti-money laundering controls — a critical risk domain for any licensed financial intermediary operating within the EU.

RATEX42 COMPLIANCE ENTRY

Administrative Sanction – AML Findings

Entity: Payabl.Cy Ltd (formerly Powercash21 Ltd)

LEI: 2138003UJXVWKJIH9G72
Supervisory Authority: Central Bank of Cyprus (CBC)
Jurisdiction: Republic of Cyprus

1. Regulatory Event Summary

Date of supervisory decision: 30 September 2025
Publication date: 3 October 2025
Legal basis: Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007 (as amended)
Sanction type: Administrative monetary fine
Amount: €350,000
Judical Review Rating: Pending (On 12 December 2025, Payabl. Cy Ltd registered Appeal no.1405/2025 before the Administrative Court against the decision of the CBC).

According to the official announcement of the Central Bank of Cyprus, the sanction followed a supervisory examination of compliance with AML obligations. The review concerned the financial year 2020.

The CBC states that the supervised entity was granted the right to be heard prior to the final administrative decision.

Source: Central Bank of Cyprus – Official Announcement under AML Law 188(I)/2007.

2. Nature of the Findings

The published announcement confirms that the fine was imposed following findings of non-compliance with provisions of the AML Law. The public notice does not detail each deficiency individually but confirms that the sanction relates to obligations under the Cypriot AML framework, which implements EU AML Directives.

AML obligations applicable to regulated payment institutions in Cyprus include, inter alia:

• Customer due diligence (CDD)
• Enhanced due diligence (EDD) for higher-risk clients
• Ongoing transaction monitoring
• Risk assessment procedures
• Internal control and governance mechanisms

3. Judicial Review Status

On 12 December 2025, Payabl. Cy Ltd filed Appeal No. 1405/2025 before the Administrative Court of Cyprus challenging the CBC decision.

Status: Judicial review pending.
Source: CBC Administrative Sanctions and Measures Register.

Until and unless annulled by the Administrative Court, the CBC decision remains an official supervisory finding.

4. Regulatory Significance (Risk Perspective)

From a compliance risk perspective, an administrative AML fine of €350,000 is material for a regulated payment institution.

Key relevance factors:

• The sanction concerns AML controls (core prudential compliance area).
• The supervisory review covered a historical period (2020).
• The authority exercised its sanctioning power under EU-harmonized AML legislation.
• The entity remains regulated and supervised by the CBC.

For regulated financial institutions, AML findings may have implications for:

• Risk classification by correspondent banks
• Enhanced monitoring requirements
• External audit focus
• Regulatory scrutiny intensity
• Reputational risk assessment

RatEx42 notes that the entity continues to operate under CBC supervision and has exercised its legal right to challenge the decision before the Administrative Court.

5. Contextual Note

The entity was formerly known as Powercash21 Ltd, a name referenced in historical reporting within the payments sector. The sanction relates to the period when the entity operated under that former name.

Earlier investigative reporting in the cyber-finance space had raised compliance concerns relating to that historical operating period. The present supervisory decision constitutes an official regulatory assessment of AML controls for that timeframe.

6. Risk Classification Impact (RatEx42 Internal Framework)

Under the RatEx42 methodology, confirmed AML administrative sanctions are classified as:

• Confirmed Supervisory Finding
• Risk Domain: AML Governance & Monitoring
• Severity: Material Administrative Fine
• Status: Under Judicial Review

Further rating adjustments depend on:

• Outcome of Appeal No. 1405/2025
• Evidence of remediation
• Subsequent supervisory findings