Relevant to: Regulated Entities 1
Circular C577 (“the Circular”) dated 06/06/2023 informs Regulated Entities on European Banking Authority’s (‘EBA’) public Consultation Paper on amendments to its Guidelines on money laundering and terrorist financing risk factors, to include crypto-asset service providers.
Through Circular C577, CySEC wishes to inform Regulated Entities that EBA, on 31st May 2023, launched a public consultation on amendments to its Guidelines on money laundering and terrorist financing (ML/TF) risk factors (‘Guidelines’).
The key takeaways from CySEC’s C577 circular can be found below:
- The proposed changes extend the scope of these Guidelines to crypto-asset service providers (‘CASPs’).
- The amendments introduce new sector-specific guidance for CASPs. This new sector-specific guidance for CASPs highlights factors that may indicate the CASP’s exposure to the higher or lower ML/TF risk.
- Furthermore, the amendments to the Guidelines include guidance to other credit and financial institutions on risks to consider when engaging in a business relationship with a CASP or when they are otherwise exposed to crypto assets.
Should you need more information or assistance with implementation of the Guidelines, you can email us at info@mnkriskconsulting.com or call us at 25-508201.
[1]Cyprus Investment Firms (‘CIFs’), Administrative Service Providers (‘ASPs’), UCITS Management Companies (‘UCITS MC’), Self-Managed UCITS (‘SM UCITS’), Alternative Investment Fund Managers (‘AIFMs’), Self-Managed Alternative Investment Funds (‘SM AIFs’), Self-Managed Alternative Investment Funds with Limited Number of Persons (‘SM AIFLNP’), Companies with sole purpose the management of AIFLNPs, Small Alternative Investment Fund Managers (‘Small AIFMs’) and Crypto Asset Service Providers.