Summary of CySEC's Circular C519

Memo #30-2022
CySEC Circular No: C519
Date: 30/06/2022
Subject: EBA Guidelines on the characteristics of a risk‐based approach to anti‐ money laundering and terrorist financing supervision, and the steps to be taken when conducting supervision on a risk‐sensitive basis under Article 48(10) of Directive (EU) 2015/849 (amending the Joint Guidelines ESAs 2016 72) (The Risk-Based Supervision Guidelines)
Purpose: To inform the Regulated Entities that EBA published its final guidelines on the characteristics of a risk‐based approach to AML/TF supervision.

In Summary:

CySEC has issued the Circular C519 on 30/06/2022 to inform the Cyprus Investment Firms (‘CIFs’), Administrative Service Providers (‘ASPs’), Alternative Investment Fund Managers (‘AIFMs’), UCITS Management Companies (‘UCITS MC’), Self-Managed UCITS (‘SM UCITS’), Self-Managed Alternative Investment Funds (‘SM AIFs’), Self-Managed Alternative Investment Funds with Limited Number of Persons (‘SM AIFLNP’), Companies with sole purpose the management of AIFLNPs and the Small Alternative Investment Fund Managers (‘Small AIFMs’), that the European Banking Authority (‘EBA’) published, on the 16th of December 2021, its final guidelines (‘EBA/GL/2021/16’) on the characteristics of a risk‐based approach to anti‐ money laundering and terrorist financing (‘AML/TF’) supervision and the steps to be taken when conducting supervision on a risk‐sensitive basis under Article 48(10) of Directive (EU) 2015/849 (‘The Risk-Based Supervision Guidelines’).

EBAs’ Guidelines EBA/GL/2021/16 are addressed to competent authorities as defined in point (2)(iii) of Article 4 of Regulation (EU) No 1093/2010.

The Joint Guidelines ESAs/2016/72 are repealed, with effect from the date of application of the EBA/GL/2021/16.

The proposed amendments address the key challenges for supervisors when implementing the risk-based approach.

This Circular C519 refers in summary about the revised guidelines.

CySEC notes that these Guidelines will apply from 04 July 2022.

CySEC also notes that it will reflect the Guidelines' provisions as appropriate into its Risk Based Supervision Framework (‘RBS-F’) as well as in the relevant AML/CFT risk-based supervisory process.

CySEC urges the Regulated Entities to take duly account and read EBAs Risk-Based Supervision Guidelines.

The EBA's Guidelines can be found on the following link:

Read the CySEC Circular C519

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