CySEC’s Progress Acknowledged in Moneyval Report
In a significant acknowledgment of its efforts, the Cyprus Securities and Exchange Commission (CySEC) has been commended for its strides in combating money laundering and terrorism financing. The commendation comes from a recent Moneyval report, which is the Council of Europe’s committee of experts tasked with evaluating anti-money laundering measures and the financing of terrorism.
The report particularly highlighted Cyprus’s enhanced compliance with the Financial Action Task Force’s (FATF) regulations on new technologies. It also noted progress within the non-profit sector. Since November 2022, CySEC has strengthened its regime for virtual asset service providers, leaving only minor deficiencies to be addressed.
Dr George Theocharides, Chairman of CySEC, expressed his views on the report, stating, “Moneyval’s upgrade is a clear vote of confidence in the effectiveness of financial regulation in Cyprus, particularly in relation to Crypto-Asset Services Providers.” He emphasized the significant measures implemented by CySEC to assess and mitigate risks in the crypto-assets sector and to enhance compliance among providers.
The report represents the third follow-up on the Republic of Cyprus by Moneyval. During this assessment, experts reviewed the technical compliance established by the Republic to thwart money laundering and terrorism financing. CySEC, among other relevant Cyprus authorities, was evaluated for its technical compliance.
Significantly, the report underscored the Republic of Cyprus’s advancements in aligning with FATF Recommendations, especially regarding new technologies. The improved assessment of new technologies (Recommendation 15) mirrors the substantial efforts and measures adopted by CySEC and other authorities to prevent and suppress illicit activities in the crypto-assets sector.
FATF Recommendation 15 sets international standards for states to implement AML and CFT measures concerning new technologies, with a particular focus on Crypto-Asset Services Providers (CASPs). Moneyval’s assessment confirmed that CySEC, as the competent authority for preventing and suppressing money laundering and terrorism financing related to CASPs’ activities, has made commendable progress.
