Read the CySEC Circular C605
Memo #59-2023
CySEC Circular No: C605
Date: 28/11/2023
Subject: European Banking Authority (‘EBA’) public Consultation Paper on new Guidelines on preventing the abuse of funds and certain crypto-assets transfers, for money laundering and terrorist financing purposes
Purpose: To inform the Regulated Entities for EBA's public consultation on new Guidelines on preventing the abuse of funds and certain crypto-assets transfers.
In Summary:
CySEC has issued the Circular C605 on 28/11/2023 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 launched on 24/11/2023 a public consultation on new Guidelines (‘Travel Rule Guidelines’) on preventing the abuse of funds and certain crypto-assets transfers for money laundering and terrorist financing purposes under Regulation (EU) 2023/1113 [Regulation (EU) 2023/1113 of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849].
The Travel Rule Guidelines specify the steps that Payment Service Providers (‘PSPs’), Intermediary PSPs (‘IPSPs’), crypto-asset service providers (‘CASPs’) and Intermediary CASPs (‘ICASPs’) should take to detect missing or incomplete information, that accompanies a transfer of funds or crypto-assets and detail the procedures all these providers should put in place to manage a transfer of funds or a transfer of crypto-assets that lacks the required information.
The main objective of the Travel Rule Guidelines is to prevent the abuse of funds and crypto-assets transfers for terrorist financing and other financial crime purposes.
CySEC further informs that Regulated Entities may respond to the EBA’s public consultation by submitting their comments through the EBA's consultation page https://www.eba.europa.eu/eba-consults-new-guidelines-preventing-abuse-funds-and-certain-crypto-assets-transfers-money
In accordance with the Circular C605, the CySEC encourages the Regulated Entities to respond to the EBA’s public consultation paper.
The EBA's public consultation can be found on the following link: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Consultations/2024/Consultation%20on%20Guidelines%20on%20preventing%20the%20abuse%20of%20funds%20and%20certain%20crypto-assets%20transfers%20for%20ML-TF%20%28Travel%20rule%20Guidelines%29/1063898/Consultation%20paper%20on%20draft%20travel%20rule%20Guidelines%20under%20Regulation%20%28EU%29%202023_1113.pdf
Read the CySEC Circular C605
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