CySEC wishes to inform the Regulated Entities of the following:
- The Joint Committee of the three European Supervisory Authorities (“ESAs”) (i.e. EBA, EIOPA and ESMA) published, on the 07.04.17, its final guidelines on the characteristics of a risk-based approach to AML and CFT supervision, and the steps to be taken when conducting supervision on a risk-sensitive basis (“The Risk-Based Supervision Guidelines”), in relation to the new Fourth AML (EU) Directive.
- The Risk-Based Supervision Guidelines are addressed to National Competent Authorities and their aim is to create both, a common understanding of the Risk-Based Supervision (“RBS”) and to establish consistent and effective supervisory practices across the EU.
- More specifically the RBS is characterised as an ongoing cyclical process that includes the following steps:
- Identification of ML/TF risk factors;
- The risk assessment;
- The allocation of AML/CFT supervisory resource based on the assessment;
- Monitoring and Review.
CySEC’s expects that: Considering that the Risk-Based Supervision Guidelines apply since 07.04.18, CySEC has incorporated them into its RBS Framework, as appropriate in the relevant AML/CFT RBS process. Hence, the Regulated Entities shall take into account and comply with those.