CySEC Circular C319

Table of Amendments

Paragraph

Explanation

1.

Definitions

Obliged Entity

The definition ‘Financial Organization’ is replaced by the definition ‘Obliged Entity’.

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 AML 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. Information regarding the Alternate AML Compliance Officer’s appointment is provided in paragraph 8 of the AML Directive.

It is clarified that the provisions of paragraph 8 of the AML 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.

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 paragraph 25 of the AML Directive.

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 AML 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.