Amendments to Directive for the prevention and suppression of money laundering and terrorist financing (register of CASPs)

On the 29^th November 2023, the Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing (Register of Crypto Asset Service Providers) (Amending) of 2023 – R.A.D. 343/2023 was passed, amending the Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing (Register of Crypto Asset Service Providers) of 2021.

The following amendments were made:

The definition of the term "Relevant offence" was amended to mean any criminal offence:

a)       any offence under the law governing banking, financial activities, as well as securities and insurance activities, or in relation to securities markets or means of payment;

b)      any other offence under corporate, bankruptcy, insolvency or consumer protection law;

c)      any offence involving fraudulent conduct, fraud or financial crime, including money laundering and terrorist financing, market manipulation, insider trading, usury and corruption;

d)      relating to a tax offence;

e)      relating to drugs;

f)      relating to trafficking and exploitation of persons.

As regards what is considered as good reputation in Article 6(1)(b)(i) of persons holding a management position in the applicant company, this was amended as follows:

"Good reputation" is considered the integrity and morality of the person and is documented if there is no reliable evidence to suggest otherwise, so that the Cyprus Securities and Exchange Commission has good reasons to doubt it.

Factors that call into question the "integrity" of the person include:

• any conviction or prosecution for the commission of a criminal offence against the said person or against an associate, and in particular a conviction for a relevant offence against the person or against an associate or prosecution for a related offence against the person or against an associate,
• imposition of administrative sanctions on the said person due to non-compliance with laws and/or regulations governing the financial sector
• the inclusion of the person in a sanctions list.

Factors that call into question a person's "morality" take into account their behaviour in previous business and supervisory relations, and in particular:

• Any indication that the person has not been transparent, open and cooperative in their engagement with supervisory or regulatory authorities;
• Any rejection of any application for registration, approval, participation or licensing for the pursuit of a commercial, business or professional activity, any revocation, withdrawal or termination of such registration, approval, participation or licensing and any deregistration from a professional body or association;
• The reasons for any dismissal from a position of employment or from any position of trust, fiduciary relationship or other similar case, as well as any official calls for resignation from such a position;
• Any termination, by the competent authority, of a person who directs the business activities.

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. For further information or advice, please contact Christina Tifa, Associate at the Limassol office by email at christina.tifa@kyprianou.com or by telephone +357 25363685