Key AML Regulatory Updates in 2024: Combating Economic Crime and Recent Trends in AML

As we progress through 2024, regulated entities must prepare for critical upcoming reporting obligations mandated by the Cyprus Securities and Exchange Commission (CySEC). This article provides an overview of anticipated AML regulatory updates and essential CySEC circulars to help regulated entities ensure compliance while emphasizing the comprehensive curriculum that industry professionals can benefit from in our upcoming webinar, “Combating Economic Crime and Recent Trends in AML.”

 

Overview of CySEC Circular C571

Issued in May 2023, CySEC Circular C571 adopts the European Banking Authority’s (EBA) Guidelines on ICT and security risk management (EBA/GL/2019/04). These guidelines address the increasing digitalization of financial activities and the accompanying ICT and security risks, applicable to CIFs with initial capital requirements of €150,000 and €750,000. The guidelines emphasize the importance of a robust governance and internal control framework, assigning responsibilities for managing ICT and security risks, and conducting periodic audits by qualified professionals.

 

Additional Key Circulars on AML

CySEC has also issued several important circulars related to AML compliance, which are critical for regulated entities:

  • Circular C614: Relates to the EBA’s Guidelines on national restrictive measures, addressing governance, KYC, and due diligence.
  • Circular C516: Discusses findings from the AML Compliance Officer (AMLCO) Annual Reports’ Assessment, highlighting weaknesses and reminders.
  • Circular C550: Covers CySEC’s onsite inspections for ML/TF prevention, noting common deficiencies and best practices.
  • Circular C535: Corresponds to the EBA Guidelines on compliance management and the role of the AML/CFT Compliance Officer.

 

Upcoming AML Regulatory Updates

Cyprus integrates AML European Directives into its national laws to maintain a unified approach to combating Money Laundering (ML) and Terrorism Financing (TF). The anticipated AML regulatory changes for 2024 include:

  • New AML/CFT Regulation: Establishes rules for customer due diligence and beneficial ownership.
  • Revision of Regulation 2015/847/EU: Focuses on tracing crypto-asset transfers and adopting the travel rule.
  • Amending Directive (EU) 2019/1153: Grants national authorities access to the Bank Account Registers Interconnection System (BARIS).
  • 6th AML Directive (AMLD6): Repeals AMLD 4 and AMLD 5, addressing emerging risks and increasing transparency.

 

The 6th Anti-Money Laundering Directive (AMLD6)

AMLD6 aims to create a cohesive framework for combating ML and TF across the EU. It harmonizes definitions and offenses related to money laundering, ensuring consistent application across Member States. Key aspects of AMLD6 include increased accountability and liability, emphasizing cooperation and information exchange between authorities, and introducing stringent administrative sanctions for non-compliant entities. These sanctions can include significant monetary penalties and corrective actions.

 

Join Our Webinar: Combating Economic Crime and Recent Trends in AML

To support industry professionals in staying ahead of these regulatory changes, Centre Eight Education and Research in association with CX Financia  is hosting an informative webinar titled “Combating Economic Crime and Recent Trends in AML”. This webinar will provide in-depth insights into the current AML framework and anticipated regulatory updates.

 

Webinar Curriculum

The comprehensive curriculum includes:

  • Understanding Financial Crime: Insights into the types of financial crime affecting the industry.
  • Money Laundering Methods and Techniques: Overview of the latest methods and techniques used in money laundering.
  • Terrorist Financing: Understanding the intricacies of terrorist financing.
  • Crypto and Money Laundering: Exploring the intersection of cryptocurrency and money laundering.
  • The Role of the FATF in AML Compliance: The importance of the Financial Action Task Force in setting AML standards.
  • Understanding and Mitigating Risks: Adopting a risk-based approach to AML compliance.
  • Customer Due Diligence (CDD): Best practices for performing CDD.
  • Enhanced Due Diligence (EDD): Techniques and best practices for EDD.
  • The AML Compliance Culture: Fostering a culture of compliance within your organization.

 

Why Attend Our Webinar?

  • Stay Informed: Get the latest updates on AML regulations and compliance requirements.
  • Enhance Your Skills: Gain practical insights and strategies to improve your AML compliance efforts.
  • Network with Peers: Connect with other professionals in the industry and share experiences.
  • Earn CPD Credits: Fulfill your professional development requirements with 6 CPD units.

 

Register Now

Don’t miss this opportunity to stay ahead of the regulatory curve and ensure your firm’s compliance. Register for our webinar today and join us at the end of the month for an engaging and informative session.

Register for the Webinar

Preparing for Compliance Challenges Ahead

It is essential for obliged entities to recognize that the ultimate responsibility for regulatory compliance rests with them. Relevant stakeholders must stay informed and employ a methodical approach when dealing with regulatory updates.

By staying proactive and informed, regulated entities can navigate the evolving regulatory landscape effectively, ensuring robust compliance and contributing to a transparent and secure financial environment within the EU.

Stay tuned for more updates and make sure to register for our upcoming webinar, “Combating Economic Crime and Recent Trends in AML,” to stay ahead in your compliance efforts. For further details, refer to CySEC’s official documentation and guidelines.