Summary of CySEC's Circular C474

Memo #47-2021
CySEC Circular No: C474
Date: 21/10/2021
Subject: United Nations Security Council Resolutions or Decisions (Sanctions) and the European Union Council’s Decisions and Regulations (Restrictive Measures)
Purpose: To inform Regulated Entities that CySEC has added on its website the section “Sanctions/Restrictive Measures”.

In Summary:

CySEC has issued the Circular C474 on 21/10/2021 to inform the CIFs, ASPs, UCITS Management Companies, Internally managed UCITS, AIFMs, Internally managed AIFs, Internally managed AIFLNPs and Companies with sole purpose the management of AIFLNPs, that section “Sanctions/Restrictive Measures” has been added on CySEC’s website under ‘Regulatory Framework’.

This section includes information and notifications regarding compliance with the provisions of the United Nations (UN) Security Council Resolutions or Decisions (Sanctions) and the European Union (EU) Council’s Decisions and Regulations (Restrictive Measures).

CySEC reminds Regulated Entities of their obligation to implement the Sanctions that are adopted in line with the UN Security Council Resolutions/Decisions, the Restrictive Measures that are adopted by the EU Council and any other European legislation or legally binding international act on Sanctions/Restrictive Measures.

CySEC urges the Regulated Entities:

• To study the notifications in Section “Sanctions/Restrictive Measures” on CySEC’s website and assess whether the Sanctions/Restrictive Measures contained therein affect their customers.
• To assess or reassess money laundering and terrorist financing risks, in the case of a business relationship with any person subject to Sanctions/Restrictive Measures.
• In the case of a new/prospective customer who is subject to Sanctions/Restrictive Measures, to avoid the commencement of any business relationship with such a customer.
• In the case of an existing customer who is subject to Sanctions/Restrictive Measures, to carefully examine the actions/measures that must be implemented (e.g. whether the freezing of funds/accounts is necessary, etc.) in accordance with the relevant UN Security Council Resolutions/Decisions and/or the EU Council’s Decisions and Regulations.

CySEC expects from the Regulated Entities to continuously monitor, inter alia, the Section “Sanctions/Restrictive Measures” on CySEC’s website and ensure their full compliance with the Law.

Read the CySEC Circular C474

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