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Cyprus: CySEC circular on reporting requirements

Elias Neocleous
The Cyprus Securities and Exchange Commission (CySEC) has issued a circular reminding providers of administrative and corporate services (ASPs) that it supervises their reporting obligations under the Law regulating Companies providing Administrative Services and Related Matters of 2012 (the ASP Law).

It draws attention to article 11(1)(c) of the ASP Law, which provides that ASPs whose application for a licence is under consideration by CySEC must comply with the requirements of the ASP Law and CySEC Directive D?144-2007-08 of 2012 for the Prevention of Money Laundering and Terrorist Financing (the AML Directive).

Article 22 of the ASP Law requires ASPs to prepare financial statements that show a true and fair view and comply with all applicable accounting standards and rules, and to have them audited by a registered auditor. The financial statements and auditor's report should be completed no later than four months after the end of the financial year. They should be kept at the head offices of the ASP and should be available to CySEC on request. ASPs whose authorisation is pending are required to comply with these obligations.

The AML Directive requires regulated entities to provide CySEC with a copy of their annual anti-money laundering compliance report, together with details of any measures to be taken to address any deficiencies, no later than three months after the end of each calendar year. Regulated entities must also submit their internal audit function's report on the effectiveness of anti-money laundering procedures, together with details of any measures to be taken to address any deficiencies, no later than four months after the end of each calendar year. ASPs whose authorisation is pending are required to comply with these obligations.

Regulated entities are also required to compile a monthly prevention statement in the prescribed form and submit it to CySEC within 15 days of the end of each month. ASPs whose authorisation is pending are required to compile the monthly statement, but not to submit it to CySEC until authorisation is granted.

Elias Neocleous

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