Summary of CySEC's Circular C416

Memo #58-2020

CySEC Circular No: C416
Date: 10/11/2020
Subject: Business relationship with persons who have acquired Cypriot citizenship under the Cyprus Investment Program (CIP)
Purpose: To inform Regulated Entities that they must examine their records in order to identify whether they maintain or have maintained during the last 5 years, a business relationship with persons who have acquired Cypriot citizenship under the Cyprus Investment Program (CIP) and inform CySEC accordingly.

In Summary:

CySEC has issued the Circular C416 on 10/11/2020 to inform the CIFs, ASPs, UCITS Management Companies, Internally managed UCITS, AIFMs, Internally managed AIFs, Internally managed AIFLNPs and the Companies with sole purpose the management of AIFLNPs, that they shall examine their records in order to identify whether they maintain or have maintained during the last five (5) years, a business relationship with customers and/or customers’ beneficial owners who have acquired, either themselves or their spouses and/or their children, Cypriot citizenship under the Cyprus Investment Program (CIP).

According to section 58 of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (the ‘Law’), Regulated Entities must apply adequate and appropriate policies, controls and procedures, which are proportionate to their nature and size, so as to mitigate and manage the risks of money laundering and terrorist financing effectively.

CySEC notes that, Regulated Entities and specifically the member of the board of directors, designated in accordance with section 58D of the Law, as the responsible person for the implementation of the provisions of the Law and of the Directives and/or Circulars issued pursuant thereto, are required to inform CySEC the soonest and no later than Monday, 30 November 2020, at aml@cysec.gov.cy, for the results of the examination of their records.

Read the CySEC Circular C416

Read more news at Regulatory News