Summary of CySEC's Circular C384

Memo #31-2020

CySEC Circular No: C384
Date: 30/04/2020

Subject: ESAs Joint Guidelines on Cooperation and Information Exchange between the Supervisory Authorities of Credit and Financial Institutions - “The AML / CFT Colleges Guidelines”

Purpose: To inform Regulated Entities that the Joint Committee of the three European Supervisory Authorities-ESAs published on 16 December 2019 “The AML/CFT Colleges Guidelines”.

In Summary:

CySEC has issued the Circular C384 on 30/04/2020 in order to inform the Cyprus Investment Firms (CIFs), the Undertakings for Collective Investment in Transferable Securities (UCITS), the UCITS Management Companies (UCITS MC), the Alternative Investment Fund Managers (AIFMs), the Alternative Investment Funds (AIFs), the Alternative Investment Funds with a Limited Number of Persons (AIFLNPs) and the Companies with sole purpose the management of AIFLNPs, that the Joint Committee of the three European Supervisory Authorities (The European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority – ‘ESAs’) issued Joint guidelines on cooperation and information exchange for the purpose of Directive (EU) 2015/849 between competent authorities supervising credit and financial institutions – ‘The AML/CFT Colleges Guidelines’ (the ‘Guidelines’).

The Guidelines were first published on 16 December 16 2019.

The purpose of issuing these Guidelines is to clarify the practical modalities of supervisory cooperation and information exchange, and to create a common framework that supervisors should use to support effective oversight of cross-border groups from an AML/CFT perspective and also from a more general prudential perspective. AML/CFT colleges will be central to achieving this.

The Guidelines set out:
i. the rules for the establishment of AML/CFT colleges to improve the supervision of firms operating on a cross-border basis; and

ii. the process for bilateral exchanges of information between competent authorities. 

The Guidelines cover:

a) the mapping of firms;
b) the conditions for establishing and maintaining an AML/CFT college;
c) cooperation between AML/CFT colleges and prudential supervisors;
d) the composition of AML/CFT colleges; and
e) procedural issues related to college meetings, such as written cooperation and information-sharing agreements, procedures for requesting and providing mutual assistance, a common approach and other related aspects.

The CySEC urges the Regulated Entities to take duly account and read the ESAs AML/CFT Colleges Guidelines.

Read the CySEC Circular C384

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