Summary of CySEC's Circular C589
Memo #43-2023
CySEC Circular No: C589
Date: 19/07/2023
Subject: MONEYVAL’s report on money laundering and financing of terrorism risks in the world of virtual assets
Purpose: To inform the Regulated Entities that the MONEYVAL has published a Report on money laundering and financing of terrorism risks in the world of virtual assets.
In Summary:
CySEC has issued the Circular C589 on 18/07/2023 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 the Crypto Asset Service Providers, that the MONEYVAL has published a Report on money laundering and financing of terrorism risks in the world of virtual assets (‘Report’).
The Report presents an overview of the money laundering and financing of terrorism risks in the world of virtual assets and their service providers in MONEYVAL members.
The report includes a horizontal analysis of MONEYVAL members’ level of compliance with Recommendation 15, an overview of the measures taken to regulate and supervise the virtual asset service providers (VASP) sector as well as some features of the identified risks that criminals use VASPs and virtual assets (VA) to launder proceeds of crime (i.e., exchanges, exchange offices, aggregators, and other cryptocurrency platforms including e-gaming, sports betting and NFTs).
The report is structured into four sections:
• Horizontal review of compliance with Recommendation 15;
• Assessment of VA and VASP risks;
• RBA supervision of the VASP sector;
• Law enforcement and operational issues.
CySEC informs that considers the Report to be of assistance to the Regulated Entities engaging or seeking to engage in VA activities, in understanding their AML/CFT risks and obligations and how they can effectively comply with these obligations.
CySEC further informs that expects that all Regulated Entities study the Report and take its content into account when assessing AML/CFT risks, thereby improving the effectiveness of the measures and procedures applied.
The MONEYVAL’s Report can be found on the following link: https://rm.coe.int/moneyval-2023-12-vasp-typologies-report/1680abdec4
Read the CySEC Circular C589
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