The Cyprus Securities and Exchange Commission (CySEC) issued Circular C550, informing the regulated entities of the outcome of its onsite inspections conducted during 2021 and 2022.
Findings from these inspections evidenced some examples of good practices, although CySEC also observed some common weaknesses/deficiencies across the Regulated Entities.
Based on this Circular, CySEC outlines the good practices which have been identified and expects the Regulated Entities to perform the same. In addition, CySEC takes this opportunity to present to the Regulated Entities, the areas in which they should pay close attention to and to assist in formulating an environment of compliance with their AML/CFT obligations. Among others, CySEC warns Regulated Entities of their obligation to verify the identity and economic profile of their customers by requesting the appropriate documents and other information, as well as to monitor their transactions on a continuous basis.