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CySEC directive focusing on money laundering

May 13, 2019 at 7:00am
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The Cyprus Securities and Exchange Commission has sent out a directive which requires that additional targeted training should be provided by regulated entities to their staff especially in the area of suspicious activity monitoring.

Regulated entities should also appoint a senior staff member who has the ability, the knowledge and the expertise as a ‘money laundering compliance officer’.

And all reports should be made to him/her about any information or other matter which comes to the entity’s attention.

The aim is to mitigate and manage the risks of money laundering and terrorist financing effectively in relation to internal reporting and reporting to MOKAS (the Legal Service’s Unit for Combating Money Laundering).

A submitted report should be examined in the light of all other relevant information by the money laundering compliance officer for the purpose of determining whether or not the information or other matter contained in the report proves this fact or creates such a suspicion, according to the directive.

The money laundering compliance officer should then be allowed to have direct and timely access to other information, data and documents which may be of assistance to him/her and which is available to the obliged entity.

And when they have reasonable suspicion that monetary sums, irrespective of the amount, constitute proceeds of illegal activities or relate to terrorist financing, should ensure that MOKAS is immediately notified.

Regulated entities are also obliged now to submit a relevant report and provide complimentary information after a relevant request by MOKAS.

Moreover, an entity’s board of director and senior management should approve a mandatory annual training programme.

They should also ensure that they receive adequate information on the implementation of the regulated entity’s training programme.

 

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