Read the CySEC Circular C655
Memo #40-2024
CySEC Circular No: C655
Date: 09/08/2024
Subject: Findings of the assessment of Compliance Officers’ Annual Reports and Internal Audit Reports on the prevention of money laundering and terrorist financing, for the year 2022
Purpose: To inform the Regulated Entities regarding some commonly weaknesses and deficiencies that CySEC identified during its annual risk-based assessment of Compliance Officers’ Annual Reports and Internal Audit Reports on AML
In Summary:
CySEC has issued the Circular C655 on 06/08/2024 to inform the Crypto Asset Service Providers (‘CASPs’), 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 and the Small Alternative Investment Fund Managers (‘Small AIFMs’), that CySEC has conducted its annual risk-based assessment of Compliance Officers’ Annual Reports and Internal Audit Reports (the ‘Reports’), concerning the Reports for the year 2022 and the relevant minutes of the Board of Directors (the ‘BoD’), submitted to CySEC in 2023.
CySEC informs that, in carrying out these assessment reviews, it has evaluated the Regulated Entities’ adherence to the requirements set out in the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (L.188(I)/2007), as amended (the ‘Law’) and the CySEC’s Directive for the Prevention of Money Laundering and Terrorist Financing, as amended (the ‘Directive’) and to instructions/guidance set out in CySEC’s Circulars C033, C186 and C191.
This Circular C655 refers to some commonly identified weaknesses and deficiencies that CySEC identified during its assessments. CySEC reminds the Regulated Entities to take immediate corrective actions.
The commonly identified weaknesses and deficiencies are related to:
• the assessment of the content of the Compliance Officers’ Annual Reports on the prevention of money laundering and terrorist financing and the relevant BoD minutes submitted by CIFs, ASPs, Internally Managed Investment Funds, External Investment Fund Managers and CASPs.
• the assessment of the Internal Audit Reports on the prevention of money laundering and terrorist financing and the relevant BoD minutes submitted by CIFs, ASPs, Internally Managed Investment Funds and External Investment Fund Managers.
CySEC further informs that the common and recurring weaknesses and deficiencies will be the subject of rigorous compliance checks by the CySEC.
CySEC notes that it expects that all Regulated Entities consider the findings mentioned in this Circular C655 when preparing the Reports for the calendar year 2023 and onwards, to ensure full compliance with the Law and the Directive.
Read the CySEC Circular C655
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