Summary of CySEC's Circular C516

Memo #27-2022
CySEC Circular No: C516
Date: 02/06/2022

Subject: Findings of the assessment of Compliance Officers’ Annual Reports and Internal Audit Reports on the prevention of money laundering and terrorist financing, for the year 2020
Purpose: To inform the regulated entities regarding the findings of the assessment performed by CySEC of the Compliance Officers’ Annual Reports and Internal Audit Reports on the prevention of money laundering and terrorist financing, for the year 2020.

In Summary:

CySEC has issued the Circular C516 on 02/06/2022 to inform the CIFs, ASPs, UCITS Management Companies, Internally managed UCITS, AIFMs, Internally managed AIFs, Internally managed AIFLNPs, Companies with sole purpose the management of AIFLNPs, Small AIFMs under Law 81(I)/2020 and Crypto Asset Service Providers, for the findings of the assessment performed by CySEC of the Compliance Officers’ Annual Reports and Internal Audit Reports on the prevention of money laundering and terrorist financing, for the year 2020.

The assessment review includes among others, a review of reports for the year 2020 and the relevant minutes of the Board of Directors submitted to CySEC in 2021.

CySEC further informs that in carrying out these assessment reviews, CySEC evaluated regulated entities’ adherence to the requirements set out in the:
 
• Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (L.188(I)/2007), as amended
• CySEC’s Directive for the Prevention of Money Laundering and Terrorist Financing
• Circular C033
• Circular C186
• Circular C191

This circular C516 refers to the common weaknesses and deficiencies identified during the assessment as to the content of the:

• Compliance Officers’ Annual Reports on the prevention of money laundering and terrorist financing and the relevant BoD minutes
• Internal Audit Reports on the prevention of money laundering and terrorist financing and the relevant BoD minutes

This Circular C516 also refers for the obligations of regulated entities, taking into account the findings of the assessment.

CySEC notes that regulated entities should be aware that common and recurring weaknesses and deficiencies will be the subject of rigorous compliance checks by the CySEC.

CySEC expects that all regulated entities take into account the findings that are referred in this Circular C516 when preparing the Reports for the calendar year 2021 and onwards.

Read the CySEC Circular C516

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