Summary of CySEC's Circular C476
Memo #49-2021
CySEC Circular No: C476
Date: 24/11/2021
Subject: Financial Action Task Force (FATF) Guidance on Risk-based Approach for Virtual Assets and Virtual Asset Service Providers
Purpose: To inform the Regulated Entities that the FATF has updated its 2019 Guidance for a Risk-Based Approach to VAs and VASPs.
In Summary:
CySEC has issued the Circular C476 on 24/11/2021 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, Crypto Asset Service Providers and Small AIFMs under Law 81(I)/2020, that the Financial Action Task Force (FATF) has updated its 2019 Guidance for a Risk-Based Approach to Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).
This updated Guidance, among others:
• explains how the FATF Recommendations should apply to VA activities and VASPs;
• provides relevant examples and types of activities covered and/or excluded by the VASP definition;
• identifies obstacles to applying mitigating measures to the dangers deriving and associated with VA activities and VASPs;
• and offers potential solutions.
This updated Guidance forms part of the FATF’s ongoing monitoring of the virtual assets and Virtual Asset Service Providers (VASPs) sector.
The CySEC considers the FATF’s updated Guidance to be of assistance to the Regulated Entities engaging or seeking to engage in VA activities, in understanding their AML/CFT obligations and how they can effectively comply with these obligations.
Hence the CySEC urges the Regulated Entities to study the afore-mentioned Guidance.
The updated Guidance can be found on the following link: https://www.fatf-gafi.org/media/fatf/documents/recommendations/Updated-Guidance-VA-VASP.pdf
Read the CySEC Circular C476
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