Summary of CySEC's Circular C550
Memo #24-2023
CySEC Circular No: C550
Date: 03/05/2023
Subject: Common weaknesses/deficiencies and good practices identified during the onsite inspections performed in relation to the prevention of money laundering and terrorist financing
Purpose: To inform the Regulated Entities for the findings during the onsite inspections performed in relation to the prevention of money laundering and terrorist financing.
In Summary:
CySEC has issued the Circular C550 on 02/05/2023 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 Crypto Asset Service Providers, for the findings during CySEC's onsite inspections performed in Years 2021 and 2022, in relation to the prevention of money laundering and terrorist financing.
During the inspections across the Regulated Entities, CySEC has evidenced some examples of good practices and some common weaknesses/deficiencies.
With the publication of the common weaknesses and deficiencies identified during the onsite inspections, CySEC takes this opportunity to present to the Regulated Entities the areas in which they should pay close attention to and to assist in formulating an environment of compliance with their AML/CFT obligations.
The good practices identified refer to:
• AML/CFT Internal Control Measures
• Record keeping
• Governance
• Automated IT tools for AML/CFT purposes
• High-risk customers
The common weaknesses/deficiencies identified refer to:
• Customer Due Diligence (CDD) Measures
• Enhanced Due Diligence (EDD) Measures
• AML/CFT Risk Assessments
• Customers’ Screening and Transactions Monitoring
Read the CySEC Circular C550
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