Read the CySEC Circular C635
Memo #22-2024
CySEC Circular No: C635
Date: 19/04/2024
Subject: EU Council's Restrictive Measures against Russia due to its military aggression against Ukraine – Article 5r of Council Regulation (EU) No. 833/2014
Purpose: To inform Regulated Entities for new reporting obligations according to EU Council's Restrictive Measures against Russia.
In Summary:
CySEC has issued the Circular C635 on 19/04/2024 to inform the CIFs, ASPs, UCITS Management Companies, Internally managed UCITS, AIFMs, Internally managed AIFs, Internally managed AIFLNPs, Companies with sole purpose the management of AIFLNPs, Crypto Asset Service Providers and the Small AIFMs under Law 81(I)/2020, regarding new reporting obligations, following the addition of Article 5r of Council Regulation (EU) No. 833/2014 through the 12th EU package of economic and individual sanctions against Russia due to its military aggression against Ukraine, issued on 18 December 2023.
Article 5r of Council Regulation (EU) No. 833/2014:
“1. Legal persons, entities and bodies established in the Union whose proprietary rights are directly or indirectly owned for more than 40 % by:
(a) a legal person, entity or body established in Russia;
(b) a Russian national; or
(c) a natural person residing in Russia, shall, as of 1 May 2024, report to the competent authority of the Member State where they are established, within two weeks of the end of each quarter, any transfer of funds exceeding 100 000 EUR out of the Union that they made during that quarter, directly or indirectly, in one or several operations.
2. Notwithstanding the applicable rules concerning reporting, confidentiality and professional secrecy, credit and financial institutions shall, as of 1 July 2024, report to the competent authority of the Member State where they are located, within two weeks of the end of each semester, information on all transfers of funds out of the Union of a cumulative amount, over that semester, exceeding 100 000 EUR that they initiated, directly or indirectly, for the legal persons, entities and bodies referred to in paragraph 1.
[…]”
Paragraph 1 of Article 5r sets out reporting obligations to all legal persons, entities and bodies established in Cyprus, whose proprietary rights are directly or indirectly owned for more than 40% by a legal person, entity or body established in Russia or a Russian national or a natural person residing in Russia.
Paragraph 2 of Article 5r sets out reporting obligations for credit and financial institutions.
CySEC informs that the European Commission has issued specific FAQs, as of 12 April 2024, for the provisions of Article 5r of Council Regulation (EU) No. 833/2014 on the reporting on outgoing transfers, including a relevant Reporting template (can be found attached on Circular C635) to facilitate the reporting process.
CySEC further informs that the Ministry of Finance has issued a relevant announcement (only in Greek), dated 16 April 2024, regarding the reporting obligations introduced by Article 5r of Council Regulation (EU) No. 833/2014.
CySEC notes that the relevant reports should be submitted directly to the Ministry of Finance, within the set timeframes and according to the set manner, by following the reporting instructions indicated in the announcement of the Ministry of Finance.
Read the CySEC Circular C635
Read more news at Regulatory News
