CySEC Issues New AML/CFT Reporting Requirements for Regulated Entities: Latest Updates on Monthly Prevention Statement (MPS) Form Submission
Cyprus Securities and Exchange Commission (CySEC) recently issued a notification Circular C567 to inform regulated entities about the updated version of the AML/CFT Monthly Prevention Statement (MPS) Form. The notification is effective from May 2023 (Reporting for April 2023). The circular emphasizes that the latest version of the Form must be submitted monthly through CySEC’s Transaction Reporting System (TRS) rather than the CySEc Portal.
CX Financia prepared a summary aiming to provide a clear and concise overview of the key requirements and obligations imposed by the circular, helping firms to ensure that they are fully compliant with the regulations.
CX Financia analyzes the following components of the circular C567:
The Circular C567 applies to the Regulated Entities as described below:
- Cyprus Investment Firms (CIFs)
- Administrative Service Providers (ASPs)
- UCITS Management Companies
- Internally managed UCITS
- Internally managed AIFs
- Internally managed AIFLNPs
- Companies with the sole purpose of the management of AIFLNPs
- Small AIFMs under Law 81(I)/2020
- Crypto Asset Service Providers (CASPs)
The new Form of MPS
CySEC has released the new MPS sheet in the Form of an Excel file to facilitate the collection of data for the Monthly Prevention Statement. The new Form MPS supersedes Form 144-08-11 to prevent money laundering and terrorist financing.
The MPS form consists of four parts that regulated entities must fill out:
- General information, e.g. reporting period, the person responsible
- Section A- requesting detailed information on ‘cash deposits’ exceeding €10,000. “Cash deposits” mean deposits directly from customers to the Regulated Entities, as well as deposits made by customers to the accounts of the Regulated Entities kept in credit and/or financial institutions in:
- Cash: currency, bearer-negotiable instruments, commodities used as highly-liquid stores of value, prepaid cards.
- Crypto-assets are subject to mixing,
- Anonymity Enhanced Tokens, i.e . Privacy Coins that the Firm has decided to accept following its due diligence and risk assessment
- Other deposits of assets that bear the characteristic of anonymity similar to cash and the physical holder are presumed to be the owner, or deposits of assets that, according to the risk assessment of the Regulated Entities, face similar ML/TF risks to cash.
- Section B: relates to information regarding any suspicious reports submitted internally or to MOKAS relating to the cash deposits mentioned in Section A.
- Validation Tests: all validation tests must pass with a TRUE value.
Guidelines for the Form’s naming convention
- The TRS username refers to the TRS credentials of the regulated entity.
- The yyyymmdd signifies the end date of the reporting period.
- The MPS-type of regulated entity -this is the coding of the Form that remains unchanged and should be inserted exactly as it appearsg
- MPS-CIF for Cyprus Investment Firms
- MPS-CASP for Crypto-Asset Services Providers
- MPS-MC for Investment Fund Management Companies
- MPS-ASP for Administrative Service Providers
How can CX Financia help?
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