Summary of CySEC's Circular C399

Memo #43-2020

CySEC Circular No: C399
Date: 16/07/2020

Subject: Financial Action Task Force (FATF) COVID-19-related Money Laundering and Terrorist Financing Risks and Policy Responses
Purpose: To inform Regulated Entities that the FATF released a Paper, which identifies challenges, good practices and policy responses to new ML and TF threats and vulnerabilities arising from the COVID-19 crisis.

In Summary:

CySEC has issued the Circular C399 on 16/07/2020 in order to inform the CIFs, ASPs, UCITS Management Companies, Internally managed UCITS, AIFMs, Internally managed AIFs, Internally managed AIFLNPs and the Companies with sole purpose the management of AIFLNPs that the Financial Action Task Force (FATF) has released a Paper, which identifies challenges, good practices and policy responses to new money laundering (ML) and terrorist financing (TF) threats and vulnerabilities arising from the COVID-19 crisis.
 
The COVID-19 pandemic has led to unprecedented global challenges, human suffering, economic disruption and an increase in COVID-19-related crimes.

The focus of this FATF’s Paper relates to three broad themes:

• New threats and vulnerabilities stemming from COVID-19-related crime and impacts on ML and TF risks;
• Current impact on AML/CFT efforts by governments and the private sector due to COVID19;
• Suggested AML/CFT policy responses to support the swift and effective implementation of measures to respond to COVID-19, while managing new risks and vulnerabilities identified, including: charitable activity and economic and fiscal stimulus and financial rescue packages for firms and individuals.

The CySEC expects that Regulated Entities take due account and consult this FATF’s Paper, as provided in paragraph 17 of the CySEC’s Directive for the prevention and suppression of money laundering and terrorist financing when implementing appropriate measures and procedures on a risk-based approach, and on implementing the customer identification and due diligence procedures.

The FATF Paper can be found on the following link: https://www.fatf-gafi.org/media/fatf/documents/COVID-19-AML-CFT.pdf 

Read the CySEC Circular C399

Read more news at Regulatory News