CySEC in Cyprus has made significant strides in enhancing anti-money laundering efforts in the crypto sector, aligning with FATF guidelines and implementing measures to regulate Crypto-Asset Services Providers. This progress has been positively acknowledged by Moneyval, highlighting Cyprus’s commitment to robust financial oversight and international cooperation.
What progress has Cyprus made in anti-money laundering efforts in the crypto sector?
Cyprus has significantly advanced its anti-money laundering (AML) efforts, especially in the crypto sector, by aligning with Financial Action Task Force (FATF) guidelines. CySEC has implemented measures to mitigate risks associated with crypto-assets, ensuring robust financial regulation and oversight of Crypto-Asset Services Providers (CASPs), thereby strengthening international cooperation and compliance standards.
Moneyval’s Positive Assessment
The Cyprus Securities and Exchange Commission (CySEC) recently expressed its approval of the latest Moneyval report, which highlighted the progress Cyprus has made in combating money laundering and the financing of terrorism. Moneyval, the Council of Europe’s expert committee on these matters, acknowledged the strides Cyprus has taken to align with the Financial Action Task Force’s (FATF) guidelines, particularly regarding new technologies and the oversight of non-profit organizations.
Since November 2022, Cyprus has significantly strengthened its regulatory framework for virtual asset service providers. The report from Moneyval points to just a few remaining minor issues. Dr. George Theocharides, the Chairman of CySEC, sees this as a resounding endorsement of Cyprus’s commitment to robust financial regulation, especially in the dynamic field of crypto-assets.
Regulatory Enhancements in Crypto-Sector
CySEC has been proactive in implementing substantial measures to mitigate risks associated with crypto-assets and to elevate compliance levels among service providers. Continuous collaboration with other Cypriot authorities aims to achieve full adherence to the FATF’s recommendations, ensuring the prevention of money laundering and terrorist financing within the burgeoning sector of crypto-assets.
The FATF’s Recommendation 15, which emphasizes the necessity of anti-money laundering (AML) and counter-terrorist financing (CFT) controls in relation to new technologies, has been a focal point of the upgrades. These are critical for the supervision of Crypto-Asset Services Providers (CASPs), and CySEC has been pivotal in these advancements.
Technical Compliance and International Cooperation
Moneyval’s third follow-up report on the Republic of Cyprus provided a comprehensive evaluation of the technical compliance measures established by Cyprus, including those by CySEC, to thwart money laundering and terrorism financing. The report also commended the progress made in adapting to FATF’s Recommendations, singling out the advancements regarding new technologies.
Cyprus’s upgraded assessment in the context of new technologies, such as those employed by Crypto-Asset Services Providers, is the outcome of continuous efforts by CySEC and other local authorities to fortify regulations and practices within the financial sector. These enhancements underscore the importance of international standards and cooperation in the fight against illicit financial activities.
The Way Forward for CySEC
Under the guidance of Chairman Dr. George Theocharides, CySEC’s approach to regulation in the crypto-assets space has been both measured and strategic. By recognizing and addressing the unique challenges and risks presented by this new frontier in finance, CySEC has positioned Cyprus as a compliant and competitive player in the global financial market.
The agency’s ongoing commitment to upholding the highest standards of AML and CFT will likely continue to foster confidence among investors and international partners, paving the way for sustainable growth and innovation within Cyprus’s financial services industry.
What progress has Cyprus made in anti-money laundering efforts in the crypto sector?
Cyprus has significantly advanced its anti-money laundering (AML) efforts, especially in the crypto sector, by aligning with Financial Action Task Force (FATF) guidelines. CySEC has implemented measures to mitigate risks associated with crypto-assets, ensuring robust financial regulation and oversight of Crypto-Asset Services Providers (CASPs), thereby strengthening international cooperation and compliance standards.
What is Moneyval’s assessment of Cyprus’s efforts in combating money laundering and terrorism financing?
Moneyval, the Council of Europe’s expert committee, has acknowledged the progress Cyprus has made in aligning with FATF guidelines in combating money laundering and terrorism financing. The recent Moneyval report praised Cyprus’s efforts, particularly in new technologies and oversight of non-profit organizations, while highlighting some minor remaining issues to address.
How has CySEC enhanced regulations in the crypto sector to mitigate risks associated with crypto-assets?
CySEC has been proactive in implementing substantial measures to mitigate risks associated with crypto-assets, aiming to elevate compliance levels among service providers. Collaboration with other Cypriot authorities ensures adherence to FATF recommendations, with a focus on anti-money laundering and counter-terrorist financing controls related to new technologies and the supervision of Crypto-Asset Services Providers (CASPs).
How has Cyprus strengthened international cooperation and compliance standards in anti-money laundering efforts?
Cyprus, through CySEC and other local authorities, has made significant progress in adapting to FATF recommendations and enhancing regulations related to new technologies in the financial sector. Moneyval’s assessment has commended Cyprus’s efforts and underscored the importance of international standards and cooperation in combating illicit financial activities. This ongoing commitment is expected to foster confidence among investors and international partners, positioning Cyprus as a compliant and competitive player in the global financial market.
