AML Directive

On 10 May 2019, CySEC published a new Directive regarding the prevention and suppression of money laundering and terrorist financing (the ‟Directive” currently available only in Greek).

The new Directive applies to, among others, CIFs, ASPs, AIFs and AIFMs

Please find below the most important amendments made:

TABLE OF AMENDMENTS
Paragraph Explanation
1. Definitions Obliged Entity

The definition ‘Financial Organization’ is replaced by the definition ‘Obliged Entity’. The said definition refers to the categories of persons that fall under the scope and obligations of the Directive

 

2. 5A Appointment of Board Member

One member of the Obliged Entity’s Board of Directors should be designated as the responsible person for the implementation of the legal framework related to the prevention and suppression of money laundering and terrorist financing. Information about the said designation is provided in paragraph 5A of the Directive.

3. 8 Appointment of Alternate AML Compliance Officer

The Obliged Entity should appoint temporarily an Alternate AML Compliance Officer, when the AML Compliance Officer is absent (can be added in the replacement policy of the Company). It is clarified that the provisions of paragraph 8 of the Directive do not apply when the AML Compliance Officer resigns from his position, since in such case the Obliged Entity should appoint a new AML Compliance Officer. Information regarding the Alternate AML Compliance Officer’s appointment is provided in paragraph 8 of the Directive

4. 12 Assessment of money laundering and terrorist financing risk

The Obliged Entity, when assessing the risk of money laundering and terrorist financing should take into account, among others, the Risk Factor Guidelines and any guidelines/guidance issued by the Financial Action Task Force (FATF).

5. 25 Third Party reliance

The Obliged Entity that relies on a third party for the customer due diligence measures and identification procedures should apply the measures and procedures described in the present paragraph.

6. 33 Types of documents

The Obliged Entity may collect original documents and true copies of the original documents. Additionally, provided that some conditions are met, copies may be collected, as well as, it may use electronic means for the collection of data and information.

7. 36 United Nations (‘UN’) and European Union (‘EU’) Sanctions Regimes

The Obliged Entity should apply the measures and procedures described in the present paragraph related to the UN and EU Sanctions Regimes.

8. Fourth Appendix Non-exhaustive list of Factors and Measures

The Fourth Appendix of the Directive is a non-exhaustive list of:

(a)    factors of potentially higher risk, that the Obliged Entity should take into account during its risk-based approach and

(b)   enhanced customer due diligence measures, which may be applied in high risk cases.

Please note that CySEC issued recently related Circulars C314, C315, C317 and C318 regarding anti-money laundering and terrorist financing.