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Aki Corsoni-Husain
Aki Corsoni-Husain
  • Aki Corsoni-Husain

  • Partner
  • Cyprus
George Apostolou
George Apostolou
  • George Apostolou

  • Partner
  • Cyprus
Chiara Deceglie
Chiara Deceglie
  • Chiara Deceglie

  • Partner
  • Luxembourg
Massimiliano della Zonca
Massimiliano della Zonca
  • Massimiliano della Zonca

  • Senior Associate
  • Luxembourg
Philip Graham
Philip Graham
  • Philip Graham

  • Partner
  • British Virgin Islands
Ayana Hull
Ayana Hull
  • Ayana Hull

  • Counsel
  • British Virgin Islands
Katerina Katsiami
Katerina Katsiami
  • Katerina Katsiami

  • Associate
  • Cyprus
Petros Kiteos
Petros Kiteos
  • Petros Kiteos

  • Associate
  • Cyprus
Andrew Knight
Andrew Knight
  • Andrew Knight

  • Partner
  • Luxembourg
Joshua Mangeot
Joshua Mangeot
  • Joshua Mangeot

  • Counsel
  • British Virgin Islands
Mirza Manraj
Mirza Manraj
  • Mirza Manraj

  • Counsel
  • Hong Kong
Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
  • Cyprus
Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

  • Partner
  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Consultant
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
  • Cyprus
Matt Taber
Matt Taber
  • Matt Taber

  • Partner
  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Senior Associate
  • Cayman Islands

CySEC launches consultation on use of RegTech under its AML framework

On 15 October 2020, the Cyprus Securities and Exchange Commission (CySEC) issued Consultation Paper 02-2020 (the CP) launching a consultation designed to improve the application of regulatory technology (RegTech) to customer due diligence (CDD) by obliged entities under CySEC’s supervision.

Under the Prevention and Suppression of Money Laundering and Terrorist Financing as in force (the AML Law), obliged entities must identify and verify the identity of individual and undertakings with whom they seek to do business as part of the CDD process. Specifically, obliged entities must identify the customer and verify the customer’s identity on the basis of documents, data or information obtained from a reliable and independent source, and identify the beneficial owner and take reasonable measures to verify that person's identity.

The CP consults on a proposed amendment to Annex IV of CySEC’s Directive on The Prevention of Money Laundering and Terrorist Financing (the CySEC AML Directive) by explicitly incorporating the possibility of using RegTech, subject to certain conditions.  The use of such methods is implicitly recognised in the rules, but other sections look potentially outdated compared to, and possibly inconsistent with, Cyprus’ obligations to implement a risk sensitive approach under the Fourth and Fifth EU AML Directives.

The amendment aims at expanding guidance on the use of RegTech for the purposes of conducting CDD for the non-face-to-face (NFTF) identification and verification of the identity of individuals, provided such methods can sufficiently reduce the ML/TF risks on a reasonable, consistent and demonstrable basis.

The submission of responses should be made no later than 20 November 2020 to the CySEC Policy Department via email at policy@cysec.gov.cy.

CySEC’s press release can be found here.

The Consultation Paper can be found here.