CySEC urges regulated entities to respond to EBA public consultation launch for new guidelines

The European Banking Authority (EBA) has launched a public Consultation Paper on two sets of Guidelines on internal policies, procedures and controls to ensure the implementation of Union and national restrictive measures, the Cyprus Securities and Exchange Commission (CySEC) announced to its regulated entities.

In an announcement signed by CySEC Chairman Dr George Theocharides and addressed specifically to Cyprus Investment Firms (CIFs) and Crypto Asset Service Providers (CASPs), it said the EBA launched the public consultation back in December and that the restrictive measures are “binding on any person or entity under the jurisdiction of Member States”.

They comprise individual measures, i.e. targeted financial sanctions, and sectoral measures, i.e. financial and economic measures or embargoes.

“One set of draft Guidelines is addressed to financial institutions and prudential supervisors and sets common, regulatory expectations regarding the role of senior management, internal governance and risk management in the restrictive measures context. A second set of draft Guidelines, addressed to PSPs and CASPs, sets out what PSPs and CASPs should do to be able to comply with restrictive measures when performing transfers of funds and crypto-assets and focus, in particular, on know your customer (KYC), screening and due diligence.”

Comments on the consultation paper can be sent by clicking on the ‘Submit response’ button on the EBA's consultation page. The deadline for the submission of comments is 24 March 2024.

The announcement notes that the EBA will hold a virtual public hearing on the consultation paper on 8 February 2024 and has invited interested stakeholders to register using this link by 31 January 2024.

The dial-in details will be communicated by the EBA to those who have registered for the meeting. All contributions received will be published by the EBA following the end of the consultation, unless requested otherwise.

“The CySEC encourages the Regulated Entities to respond to the said consultation paper,” it concluded.