CySEC via the issuance of its Circular C476 has informed Regulated Entities (CIFs, CASPs, ASPs, AIFMs, etc.) that the Financial Action Task Force (FATF) has updated its 2019 Guidance for a Risk-Based Approach to Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). Special consideration, shall be attributed by CySEC Crypto Asset Service Providers (CASPs) to the FATF Guidance.
The revised Guidance shall form part of the FATF’s ongoing monitoring on VAs and VASP sector.
In summary, the Guidance covers, inter alia, the following:
- explains how the FATF Recommendations should apply to VA activities and VASPs;
- provides relevant examples and types of activities covered and/or excluded by the VASP definition;
- identifies obstacles to applying mitigating measures to the dangers deriving and associated with VA activities and VASPs;
- and offers potential solutions;
- more detailed definitions of virtual asset and VASP;
- examines a non-exhaustive list of elements that need to be considered by VASPs to determine how best to mitigate the relevant ML/CFT risks.
Our team at FiveComply can assist you to understand and comply with the imposed AML/CFT requirements, by identifying, assessing, and determining how to mitigate efficiently the ML/CFT risks associated with VA activities and the provision of VASP products or services.