Financial Crime World

Financial Regulation Enforcement Agencies in Cyprus Take Centre Stage

The Supervision Department of the Cyprus Securities and Exchange Commission (CySEC) has outlined its key duties aimed at ensuring compliance with relevant laws and regulations. This move is part of a broader push to strengthen financial regulation in Cyprus and enhance investor protection.

Primary Responsibilities

  • The department’s primary responsibilities include supervision of organisations under its purview regarding their ongoing legal obligations.
  • It monitors the compliance of supervised entities with the Concealment, Investigation and Confiscation of Proceeds from Certain Criminal Acts Law.
  • The department ensures that branches established in Cyprus by EU-based firms adhere to their code of conduct when providing investment services.

Monitoring Activities

  • The Supervision Department is responsible for monitoring cross-border provision of services by UCITS Management Companies based outside of Cyprus.
  • It also monitors the marketing of units of foreign harmonized and non-harmonized Undertakings for Collective Investment in Transferable Securities (UCITS) in Cyprus.
  • Additionally, the department ensures that foreign harmonized and non-harmonized UCITS and their distributors comply with their ongoing obligations for cross-border service provision.

Education and European Cooperation

  • The department plays a crucial role in educating supervised entities on critical issues such as money laundering prevention, capital adequacy, and compliance with relevant legislation.
  • It participates in European bodies responsible for preparing EU directives, regulations, standards, and guidelines, and is tasked with studying and publishing these documents in accordance with relevant laws.

Objectives

  • The Supervision Department’s monitoring activities aim to ensure that supervised entities comply with their legal requirements, prevent money laundering and terrorist financing, and maintain adequate capital levels.
  • CySEC seeks to promote a more robust regulatory environment and enhance investor protection through its enforcement activities.

Intensified Enforcement Activities

  • CySEC has announced plans to intensify its enforcement activities in the coming months, focusing on tackling non-compliance and promoting a more robust regulatory environment.
  • Industry insiders expect this move to have significant implications for financial institutions operating in the country, as CySEC seeks to ensure that all entities under its supervision meet the highest standards of transparency and accountability.