The Cyprus Securities and Exchange Commission
("CySEC") has issued a circular reminding providers of
administrative and corporate services ("ASPs") that it
supervises of 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 DΙ144-2007- 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 fifteen days after 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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.