Read the CySEC Circular C601
Memo #56-2023
CySEC Circular No: C601
Date: 12/10/2023
Subject: EBA’s Guidelines on the use of Remote Customer Onboarding Solutions under Article 13(1) of Directive (EU) 2015/849
Purpose: To inform Regulated Entities for the EBA’s s Guidelines on the use of Remote Customer Onboarding Solutions under Article 13(1) of Directive (EU) 2015/849.
In Summary:
CySEC has issued the Circular C601 on 12/10/2023 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 European Banking Authority (‘EBA’) has published its Guidelines on the use of Remote Customer Onboarding Solutions under Article 13(1) of Directive (EU) 2015/849 (‘Guidelines’).
The Guidelines set common EU standards on the development and implementation of sound, risk-sensitive initial CDD processes in the remote customer onboarding context. They set out:
• the steps institutions should take when adopting or reviewing solutions to comply with their obligations under Article 13(1) points (a), (b) and (c) of Directive (EU) 2015/849 (the ‘AMLD’) to onboard new customers remotely.
• the steps institutions should take when relying on third parties in accordance with Chapter I, Section 4 of the AMLD.
• the policies controls and procedures institutions should put in place in relation to customer due diligence (CDD) as referred to in Article 8(3) and (4) point (a) of the AMLD where the CDD measures are performed remotely.
CySEC further informs that it has adopted the Guidelines, under section 61(1) of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, as amended (the ‘AML/CFT Law’), which transposes Article 13(1) of the AMLD.
CySEC notes that the Guidelines apply since 02/10/2023 and are applicable to the point where they do not conflict the CySEC’s Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing (the ‘AML/CFT Directive’).
CySEC further notes that the AML/CFT Directive is currently under an amendment procedure to reflect the provisions of the Guidelines.
The EBA’s Guidelines can be found on the following link: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2022/EBA-GL-2022-15%20GL%20on%20remote%20customer%20onboarding/1043884/Guidelines%20on%20the%20use%20of%20Remote%20Customer%20Onboarding%20Solutions.pdf
Read the CySEC Circular C601
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