Amendment of the Cyprus AML/CFT Law enforcing CASP registration
On December 5th, 2023, the Cyprus Securities and Exchange Commission (CySEC) shared Law 98(I)/2023, amending Law 188(I)/2007 on the Prevention and Suppression of Money Laundering and Financing of Terrorism (AML/CFT Law). These amendments are dedicated to the Crypto-Asset Services Providers (CASP) being obliged entities under the AML/CFT regime while introducing new provisions for non-compliance with the obligation to register in the Cyprus CASP Register. This serves as a reminder for all CASP subject to the AML/CFT Law, to follow and adhere to all relevant measures like any other credit or financial institution.
Key Provisions of Law 98(I)/2023:
Firstly, the definition of CASP as an obliged entity has been altered to include CASP entities that are:
- Incorporated in the Republic of Cyprus.
- Not incorporated in Cyprus but provide services or engage in activities on a professional basis from the Republic.
- Not incorporated in Cyprus but provide services or engage in activities on a professional basis to the Republic, unless they are registered in a Register of other Member States for services provided to the Republic.
Based on this enhanced definition of CASP entities, all these firms are obliged to register in the Cyprus CASP Register held by CySEC.
For the first time, the law is amended and threatens the non-compliant entities with a penalty. When a firm identified as CASP, does not comply with the obligation to register in the Cyprus CASP Registry, the National Competent Authority (NCA) can enforce a penalty of:
- Imprisonment for 5 years maximum, or
- A fine of €350.000 maximum, or
- Both of the above
It is imperative for all CASP entities with objectives to offer crypto services to and from Cyprus, to comprehend the urgency of immediately complying with the above newly introduced provisions to avoid possible penalties.
The SALVUS Crypto-Assets Licensing team is comprised of several industry-leading professionals who with their long-term experience and competence with CASP applications, stand ready to assist you. We can support your CASP registration or CASP notification to CySEC if you are already registered in another Member State.
Should you require any support with your CASP registration, do not hesitate to contact us at info@salvusfunds.com our SALVUS Crypto-Assets Licensing team is ready to answer your questions.
#StayAhead
