The Cyprus House of Representatives on 18.02.2021 has enacted the long-awaited amending law to the Prevention and Suppression of Money laundering and Terrorist Financing Law 188(I)/2007 thus fully implementing EU Directive 2018/843 of the European Parliament and of the Council of 30 May 2018, (“the 5th AML Directive”).
This new enactment, (“the new Law”), implements the provisions of the 5th AML Directive that were not already implemented so far into Cyprus Law. With this new Law, the 5th AML Directive is now fully implemented in Cyprus.
The new Law will come into force once published in the official gazette of the Republic.
B. EXTENDED SCOPE OF APPLICATION OF THE ANTI-MONEY LAUNDERING LEGAL FRAMEWORK
The 5th AML Directive as implemented, extends the scope of application of the Cyprus anti-money laundering legal framework by significantly expanding its range of application.
The key changes effected by the new Law are the following:
1. The Obliged Entities
The obliged entities that will need to strictly follow the Anti – Money Laundering Law provisions, (“the AML Law”), have been expanded and including in addition, the following:
a. Cryptoasset Service Providers
Service providers of cryptoassets dealing with exchanges between cryptoassets or exchanges between cryptoassets and fiat currencies or offering wallet custodian and other financial services for cryptoassets as these are identified in the new Law, have been included now among the obliged entities who are regulated and are subject to the AML Law.
With the new Law, the service providers of cryptoassets must get registered in the registry to be established and maintained by the Cyprus Securities and Exchange Commission (“CySEC”) under relevant application to CySEC and provided they meet the criteria to be set by CySEC. Once registered they will be able to offer their services in Cyprus or from Cypru
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