MONEYVAL INSPECTION

On 8 March 2019 the Cyprus Securities and Exchange Commission (‘the CySEC’) informed regulated entities that the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL – https://www.coe.int/en/web/moneyval ) has commenced its fifth round of anti-money laundering and counter-terrorist financing (AML/CFT) mutual evaluation of the Republic of Cyprus in cooperation with the national regulatory and supervisory authorities, including CySEC.

MONEYVAL will review and assess the level of compliance of Cyprus’s AML/CFT framework with the FATF 40 Recommendations on Combating Money Laundering and the Financing of Terrorism & Proliferation and the level of effectiveness of Cyprus’s AML/CFT system, providing recommendations for strengthening Cyprus’s AML/CFT system, if required.

MONEYVAL’s assessment team will conduct an on-site visit to Cyprus during May 2019 and will have individual meetings with the relevant competent authorities, including CySEC. During its on-site visit, MONEYVAL’s assessment team is expected to hold individual meetings with a sample of obliged entities, including entities regulated by CySEC; namely Cyprus Investment Firms, Administrative Services Providers, Internally Managed Investment Funds and External Investment Fund Managers.

All selected regulated entities were informed by CySEC that MONEYVAL will conduct an on-site visit to their premises, however all regulated entities must be able to demonstrate to the authorities upon request their level of compliance with their AML/CFT obligations deriving from the Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007-2018, (‘the Law’), the Directive DI144-2007-08 on the Prevention of Money Laundering and Terrorist Financing (the Directive) and the Circulars issued by CySEC to adequately enforce the Law and Directive relating to the prevention of ML/TF.