CySEC has issued Circular C.339 (available in English here), addressed to CySEC regulated entities, which adopts the new Terrorist Financing Risk Assessment Guidance (Guidance), issued by the Financial Action Task Force (FATF).
The Guidance addresses issues of Terrorist Financing (TF) in relation to the relevant scope and governance of a TF risk assessment and provides practical examples to overcome information sharing challenges related to TF. The Guidance also includes possible examples identifying TF threats and risks within high risk sectors. Relevant vulnerabilities and other considerations are also set out in the guidelines.
The Guidance reaffirms the importance of establishing regular mechanisms to monitor TF risk on an ongoing basis and of continuing to critically review the methodology used to assess TF risks and identify blind spots. Furthermore, FATF encourages the development of multiagency information sharing initiatives and the use of information technology tools to manage “big data”.
By issuing this Circular, CySEC flags the obligation of regulated entities to take due account of and apply the Guidance, as per the provisions of paragraph 12(4) of the CySEC’s AML Directive (Directive 157/2019 on the prevention and suppression of money laundering and terrorist financing), which was issued by CySEC on 10 May 2019, in line with the new requirements of the Cyprus law transposing the EU AML 4th Directive.
For any further enquiry or assistance please contact our Financial Services Department or your usual contact at Elias Neocleous & Co LLC.