Summary of CySEC's Circular C436
Memo #16-2021
CySEC Circular No: C436
Date: 21/04/2021
Subject: Findings of the assessment of Compliance Officers’ Annual Reports and the Internal Audit Reports on the prevention of money laundering and terrorist financing
Purpose: To inform Regulated Entities about weaknesses and deficiencies that CySEC identified through an assessment of the Compliance Officers’ Annual Reports on AML and Internal Audit Reports and relevant BoD minutes.
In Summary:
CySEC has issued the Circular C436 on 21/04/2021 to inform the CIFs, ASPs, UCITS Management Companies, Internally managed UCITS, AIFMs, Internally managed AIFs, Internally managed AIFLNPs and Companies with sole purpose the management of AIFLNPs, about the common and recurring weaknesses and deficiencies identified of an assessment review and evaluation of the Regulated Entities Compliance Officers’ Annual Reports on the prevention of money laundering and terrorist financing and the relevant BoD minutes and the Internal Audit Reports and the relevant BoD minutes.
The assessment review includes all the Reports for the year 2019 and the relevant minutes of the Board of Directors submitted to CySEC in 2020.
The common and recurring weaknesses and deficiencies identified and included on this Circular C436 are the results of the assessment review and evaluation of the Regulated Entities’ compliance with the requirements set out in the CySEC’s Directive for the Prevention of Money Laundering and Terrorist Financing, Circular C033 on the Content of the Compliance Officer’s Annual Report on the prevention of money laundering and terrorist financing and Circular C191 regarding Regulated Entities’ compliance with reporting and other obligations.
CySEC informs that the Regulated entities must note that the most common and recurring weaknesses and deficiencies identified will be the subject of subsequent compliance checks by CySEC.
CySEC notes that expects that all Regulated Entities take into account the common and recurring weaknesses and deficiencies that are included on this Circular C436 when preparing the Reports for the year 2021 and onwards, in order to ensure full compliance with the Prevention and Suppression of Money Laundering and Terrorist Financing Law and CySEC’s Directive for the Prevention of Money Laundering and Terrorist Financing.
CySEC also notes that the Prevention and Suppression of Money Laundering and Terrorist Financing Law provides strict administrative sanctions in case of non-compliance with the requirements of this Law and the CySEC’s Directive for the Prevention of Money Laundering and Terrorist Financing, which CySEC will not hesitate to use.
