Cyprus Securities and Exchange Commission (CySEC) has issued a circular on Wednesday identifying common weaknesses, as well as good practices among regulated firms in relation to the prevention of money laundering and terrorist financing.
The findings of the regulator were based on onsite inspections performed in 2019 and 2020. These inspections were aimed at assessing the regulatory firms’ compliance with mandatory laws to contain and fight money laundering and terrorist financing.
The Cyprus watchdog identified various lapses in common due diligence measures in regulated firms such as incomplete customer economic profiles, omissions in the verification of the collected customers’ data and information, deficient due diligence and insufficient or inaccurate documentation on customers’ business activities.