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ESAs Guidelines on anti-money laundering and countering the financing of terrorism – ‘The Risk Factors Guidelines’

Michalaki, Pitsillidou Law Firm > English Articles  > ESAs Guidelines on anti-money laundering and countering the financing of terrorism – ‘The Risk Factors Guidelines’

ESAs Guidelines on anti-money laundering and countering the financing of terrorism – ‘The Risk Factors Guidelines’

ESAs Guidelines on anti-money laundering and countering the financing of terrorism – ‘The Risk Factors Guidelines’

 

The Cyprus Securities and Exchange Commission (‘CySEC’) wishes with this Circular to inform the Regulated Entities of the following:

  1. The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – ‘ESAs’) published on the 26th of June 2017 its final guidelines on anti-money laundering and countering the financing of terrorism (AML/CFT) (the “guidelines”). These guidelines are based on mandates in Articles 17 and 18(4) of Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
  2. The guidelines promote a common understanding of the risk-based approach to AML/CFT and set out how it should be applied. These guidelines are part of the ESAs’ wider work on fostering a consistent and effective approach to AML/CFT by both credit and financial institutions, and AML/CFT supervisors. The guidelines provide credit and financial institutions with the tools they need to make informed, risk-based decisions on the effective management of individual business relationships and occasional transactions for AML/CFT purposes.
  3. They provide guidance on the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk (ML/TF) associated with a business relationship or occasional transaction. In addition, they set out how credit and 2 financial institutions can adjust the extent of their customer due diligence measures to mitigate the ML/TF risk they have identified.
  4. Competent authorities will use these guidelines when assessing whether the ML/TF risk assessment and management systems and controls of EU credit and financial institutions are adequate.
  5. These guidelines are essential to the European Union’s fight against ML/TF. They set clear, regulatory expectations of the way credit and financial institutions should discharge important AML/CFT obligations and pave the way for a more effective and proportionate European AML/CFT regime that is consistent with international best practice and guidance. Consequently, the ESAs will keep these guidelines under review and update them as appropriate. A first update is foreseen once amendments to Directive (EU) 2015/849 have been agreed.

 

Reference: Cyprus Securities and Exchange Commission (2017). ESAs Guidelines on anti-money laundering and countering the financing of terrorism – ‘The Risk Factors Guidelines’. Retrieved from http://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=6b8a1037-aad9-4d80-8b87-6b3499ac1bbf

For more information and guidance please email Michalaki, Pitsillidou & Co LLC – Cyprus Lawyers, at info@impklawyers.com or visit our website at www.impklawyers.com.Tel. +357 25660092 – Fax +357 25 660097.

 

 

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