CySEC Circular C657 – FATF’s report on Recommendation 15

On the 17th of September, the Cyprus Securities and Exchange Commission (CySEC) issued Circular C657 to inform all regulated entities that the Financial Action Task Force (FATF) published a report on the implementation of Recommendation 15. The report examines the status of implementation of the recommendation by FATF members and jurisdictions with materially important Virtual Asset Service Providers (VASP) activity. 

The report presents a table with all FATF members, plus 20 jurisdictions, categorised by FATF as having significant VASP activity towards the implementation of Recommendation 15.  The report indicates that Cyprus has: 

• conducted a risk assessment covering Virtual Assets and VASP entities, 
• enacted legislation/regulation requiring VASP entities to be registered or licensed and apply Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) measures, 
• registered or licensed VASP entities in practice, 
• conducted a supervisory inspection or included VASP entities in its current inspection plan, 
• taken enforcement action or other supervisory action against VASP entities, and 
• passed or enacted the travel rule for VASP entities. 

According to MONEYVAL’s 3rd Enhanced Follow-up Report published on May 2nd, 2024, Cyprus has demonstrated substantial improvement regarding Recommendation 15 as it was re-rated from Partially Compliant to Largely Compliant.  

FATF’s report signifies that, within the rapidly developed sector of virtual and crypto assets, demanding regulators to build the appropriate conditions, Cyprus has met the challenge and is one of the 22 jurisdictions that are rated as ‘Largely Compliant’ with only Bahamas being rated as ‘Compliant’. 

Ultimately, the report’s aim is to help the FATF network effectively aid jurisdictions in their efforts to regulate and oversee VASP entities for AML/CFT objectives. It also strives to motivate jurisdictions with significant VASP operations to swiftly adopt Recommendation 15. 

Aiming to support, SALVUS Funds in cooperation with the Institute for Professional Excellence (IforPE), have developed a self-study course titled  Understand AML Requirements in 2024: Fiat, Digital Assets & Crypto Assets. This self-paced 5hr CPD course, discusses FATF’s recommendations along with MONEYVAL’s follow-up reports. 

The course is designed for professionals that hold key positions in Cyprus Investment Firms (CIF), Crypto Asset Service Providers (CASP), otherwise known as VASP, and other CySEC regulated entities, as well as auditors and lawyers obliged under the AML legislation. 

Moreover, the Crypto-Assets Licensing team at SALVUS has been involved in the licensing and registration of several fintech projects over the years. We have had real first-hand experience in crypto space and have successfully built on that to hone our skillset and expertise. 

Our CASP registration service guides crypto businesses into becoming supervised entities in Cyprus and in complying with the AML/CFT regulatory framework. Furthermore, our Regulatory Compliance team can effectively guide you through the upcoming regulatory requirements under the Markets in Crypto Assets (MiCA) Regulation. 

Contact us at info@salvusfunds.com if you require support with your regulatory compliance obligations or are interested in our Understand AML Requirements in 2024: Fiat, Digital Assets & Crypto Assets course with IforPE. 

#StayAhead