CySEC identified weaknesses in reports from regulated entities, including CIFs and crypto providers.
Areas for improvement include analysis of inspection methods and information on high-risk clients.
Cyprus
Securities and Exchange Commission (CySEC) has identified several areas where
regulated entities, including local investment firms and crypto services
providers need to improve their anti-money laundering and counter-terrorist
financing (AML/CFT) reporting practices.
Cyprus Regulated Firms Need
to Address Key Reporting Issues
In a
circular issued
today (Wednesday), CySEC outlined common weaknesses found in Compliance
Officers' Annual Reports and Internal Audit Reports for 2022, submitted by
various financial entities under its supervision, including Cyprus Investment
Firms (CIFs), Crypto Asset Service Providers (CASPs) and more.
“Particularly,
it was observed that the information provided in the Compliance Officers’
Annual Reports is merely the result of the inspections and reviews performed
with no reference to the method of the inspections and reviews that were
conducted,” CySEC commented.
The
regulator also noted that some reports lacked detailed descriptions of
identified deficiencies in AML measures. CySEC argues in the document that
general overviews are not enough. It wants to see specifics on weaknesses,
their implications, and proposed remedial actions with implementation
timelines.
Another
area of concern was inadequate information on high-risk customers. The
regulator emphasized the need for comparative data on the number, origin, and
type of high-risk clients, year-over-year.
The
circular also stressed the importance of thorough documentation on systems for
ongoing account monitoring. Regulated entities
should also present sufficient information on the next year's training program
for the Compliance Officer and staff, and provide adequate information on the
Compliance Officer's Department structure and duties. What is more, companies
like CIFs and CASPS should ensure that Board of Directors' minutes include
implementation timeframes for corrective measures addressing identified issues.
CySEC Fights Windmills
The
regulator's findings are part of its annual risk-based assessment, which aims
to ensure that financial institutions maintain strong defenses against money
laundering and terrorist financing. This isn't the first time CySEC has
highlighted this issue; a
similar assessment was observed over three years ago. Although the
regulator is taking action, these measures do not seem to be producing the
intended effects.
CySEC
warned that recurring weaknesses would undergo “rigorous compliance
checks” and reminded entities of potential administrative sanctions for
non-compliance. This is not just a threat, as such penalties have been paid in
the past. For example, in February, CySEC
fined Fintailor Investments €200,000 for potential breaches of regulations
related to the prevention of money laundering. A few months earlier, Freedom
Finance paid €50,000 in a similar case.
The latest
penalty imposed by the regulator, amounting to €200,000, was however not for
breaches related to AML/CFT but for offering excessively high financial
leverage. CySEC claimed that IC Markets offered clients leverage of 1000:1,
significantly higher than European regulations allow. However, IC Markets
denied the grounds of the regulator's decision, announcing plans to appeal.
Cyprus
Securities and Exchange Commission (CySEC) has identified several areas where
regulated entities, including local investment firms and crypto services
providers need to improve their anti-money laundering and counter-terrorist
financing (AML/CFT) reporting practices.
Cyprus Regulated Firms Need
to Address Key Reporting Issues
In a
circular issued
today (Wednesday), CySEC outlined common weaknesses found in Compliance
Officers' Annual Reports and Internal Audit Reports for 2022, submitted by
various financial entities under its supervision, including Cyprus Investment
Firms (CIFs), Crypto Asset Service Providers (CASPs) and more.
“Particularly,
it was observed that the information provided in the Compliance Officers’
Annual Reports is merely the result of the inspections and reviews performed
with no reference to the method of the inspections and reviews that were
conducted,” CySEC commented.
The
regulator also noted that some reports lacked detailed descriptions of
identified deficiencies in AML measures. CySEC argues in the document that
general overviews are not enough. It wants to see specifics on weaknesses,
their implications, and proposed remedial actions with implementation
timelines.
Another
area of concern was inadequate information on high-risk customers. The
regulator emphasized the need for comparative data on the number, origin, and
type of high-risk clients, year-over-year.
The
circular also stressed the importance of thorough documentation on systems for
ongoing account monitoring. Regulated entities
should also present sufficient information on the next year's training program
for the Compliance Officer and staff, and provide adequate information on the
Compliance Officer's Department structure and duties. What is more, companies
like CIFs and CASPS should ensure that Board of Directors' minutes include
implementation timeframes for corrective measures addressing identified issues.
CySEC Fights Windmills
The
regulator's findings are part of its annual risk-based assessment, which aims
to ensure that financial institutions maintain strong defenses against money
laundering and terrorist financing. This isn't the first time CySEC has
highlighted this issue; a
similar assessment was observed over three years ago. Although the
regulator is taking action, these measures do not seem to be producing the
intended effects.
CySEC
warned that recurring weaknesses would undergo “rigorous compliance
checks” and reminded entities of potential administrative sanctions for
non-compliance. This is not just a threat, as such penalties have been paid in
the past. For example, in February, CySEC
fined Fintailor Investments €200,000 for potential breaches of regulations
related to the prevention of money laundering. A few months earlier, Freedom
Finance paid €50,000 in a similar case.
The latest
penalty imposed by the regulator, amounting to €200,000, was however not for
breaches related to AML/CFT but for offering excessively high financial
leverage. CySEC claimed that IC Markets offered clients leverage of 1000:1,
significantly higher than European regulations allow. However, IC Markets
denied the grounds of the regulator's decision, announcing plans to appeal.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
MetaTrader 5 Now Supports over 40 Payment Options for Global Traders
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
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Follow FMevents across our social media platforms for news, insights, and event updates.
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Don't miss out on our latest videos, interviews, and event coverage.
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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