During 2015 and 2016 Cyprus financial regulator CySEC has performed on-site inspections assessing the compliance of Regulated Entities with their obligations deriving from the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007-2016.
The on-site inspections have shown an overall improvement and strengthening in the internal policies and controls implemented by Regulated Entities.
However, some common and recurring observations have been made, including:
• better coordination between the AML/CFT Compliance Department and Senior
Management;
• weakness to incorporate high risk variables in the Regulated Entity’s risk assessment procedures which are tailored to the specific Regulated Entity;
• difficulties in obtaining all the relevant data and information required to draw up and update clients’ economic profiles;
• lack of understanding of source of wealth, source of funds and turnover in constructing the economic profile of a client;
and more. For the full list, click here.
CySEC commented, that it expects Regulated Entites to continuously monitor and ensure their full compliance with the AML/CFT Law and AML/CFT Directive.