Summary of CySEC's Circular C535

Memo #46-2022
CySEC Circular No: C535
Date: 29/11/2022
Subject: EBA Guidelines on policies and procedures in relation to compliance management and the role and responsibilities of the AML/CFT Compliance Officer under Article 8 and Chapter VI of Directive (EU) 2015/849
Purpose: To inform the Regulated Entities that EBA has published Guidelines in relation to compliance management and the role and responsibilities of the AML/CFT Compliance Officer, that will apply as of 01/12/2022.

In Summary:

CySEC has issued the Circular C535 on 29/11/2022 to inform the Cyprus Investment Firms (‘CIFs’), Administrative Service Providers (‘ASPs’), UCITS Management Companies (‘UCITS MC’), Self-Managed UCITS (‘SM UCITS’), Alternative Investment Fund Managers (‘AIFMs’), 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, Small Alternative Investment Fund Managers (‘Small AIFMs’) and the Crypto Asset Service Providers, that the European Banking Authority (the ‘EBA’) published, on the 14th of June 2022, Guidelines (EBA/GL/2022/05) on policies and procedures in relation to compliance management and the role and responsibilities of the AML/CFT Compliance Officer under Article 8 and Chapter VI of Directive (EU) 2015/849 (the ‘Guidelines’).
 
These Guidelines will apply as of 01/12/2022.

CySEC notes that the Guidelines complement and interplay with, but do not replace, very relevant guidelines issued by the European Supervisory Authorities on wider governance arrangements and suitability checks.

In accordance with the Circular C535, the Guidelines set clear expectations of the role, tasks and responsibilities of the AML/CFT compliance officer and the management body. They specify that credit or financial institutions should appoint one member of their management body who will ultimately be responsible for the implementation of the AML/CFT obligations, and clarify the tasks and functions of that person. They also describe the roles and responsibilities of the AML/CFT compliance officer, when this person is appointed by the management body pursuant to the proportionality criteria. When the credit or financial institution is part of a group, the guidelines prescribe that a group AML/CFT compliance officer should be appointed and clarify this person’s tasks and responsibilities.

For convenience purpose, CySEC notes on this Circular C535 the sections of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (188(I)/2007) (the ‘AML/CFT Law’) which refers to specific Articles of Directive (EU) 2015/849 {Anti-money laundering Directive (AMLD IV)}.

CySEC informs that, within the context of its common supervisory approach for all the Regulated Entities in relation to the prevention and suppression of money laundering and terrorist financing, Regulated Entities should comply with the Guidelines and be able to establish sound policies, controls and procedures.

Read the CySEC Circular C535

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