Will Cyprus’ latest move clean up its banking and corporate industry?
As regulators aim to foster greater market integrity and protect investors, by continually adjusting rules and law-based guidelines from time to time, the latest such changes come from the Central Bank of Cyprus (CBC) which announced a series of revisions aimed to enhance transparency and improve AML compliance from among the financial institutions that it oversees.
Cypriot credit institutions affected by the new rule revisions - which just went into effect as of April 7th 2016 - have a limited amount of time before they must comply with the changes or face ceasing all business transactions with any relevant clients. There are at least 18 cooperative institutions, and 7 leading banks, and nearly 30 foreign authorized institutions, according to data on the CBC website for credit institutions.
Potential game changer
In a memo addressed to all AML officers and credit institutions was a list of new clauses that introduce enhanced requirements for certain financial institutions, such as the need to meet clients in person, and conduct face-to-face meetings, with regard to meeting Know Your Customer (KYC)) requirements, satisfying related AML and preventing of terrorist financing.
A key part of this news is that the ultimate beneficiary owners of companies that hold accounts at financial institutions in Cyprus will have to come forward in order to comply, as explained below and in the CBC update. This is important because of the way the nominee structure follows for the way Cypriot companies are formed, which may involve 'holding companies' or appointed representatives whilst the real owners remain largely unknown on the surface. An excerpt of the revised provisions shows two of the new several clauses that were introduced by the CBC.
Administrative scramble
This update will surely create administrative challenges, and the need for the right technology to be used in addition to a firm’s own changes to its policies, controls, and internal and external documents such as customer agreements and related disclosures.
Nearly all online financial institutions rely on the use of 3rd party systems for verifying clients data, such as Complinet and other solutions that help verify identity and check clients names against lists of known suspicious persons and against blacklisted individuals during the account opening process (i.e. for banks or brokerages where AML is needed for processing deposits/withdrawals).
These approaches may no longer cover all the related KYC and AML compliance checks, although they are still likely to be used for their inherent value, as face to face meetings will be required for certain scenarios that cannot be solved with technology, for the credit institutions in Cyprus. However, one of the clauses noted that online video meetings could be acceptable for the meetings. An excerpt from the CBC memo can be seen below which introduces the required face-to-face meeting related clause under section 86A.
The push towards transparency
This was the fourth time that the CBC amended the AML provisions since the first amendment in its 2013 Directive, and it was in line with its March 2013 agenda outlined with the international monetary fund (IMF), European Central Bank (ECB) and European Commission (EC).
Many Cypriot Investment Firms (CIFs) involved in both Forex or binary options related business may hold funds at some of the affected credit institutions in Cyprus that must comply with the new provisions within the allotted time or face losing their banking relationships with any relevant institutions unless all new compliance checks are met.
A statement from CBC noted: "Today's amendment is part of a continuous effort to further boost the regulatory framework, always with the aim of zero tolerance to deficiencies or weaknesses which could possibly lead to opportunities of money laundering, or terrorist financing,” according to a Reuters article.
As regulators aim to foster greater market integrity and protect investors, by continually adjusting rules and law-based guidelines from time to time, the latest such changes come from the Central Bank of Cyprus (CBC) which announced a series of revisions aimed to enhance transparency and improve AML compliance from among the financial institutions that it oversees.
Cypriot credit institutions affected by the new rule revisions - which just went into effect as of April 7th 2016 - have a limited amount of time before they must comply with the changes or face ceasing all business transactions with any relevant clients. There are at least 18 cooperative institutions, and 7 leading banks, and nearly 30 foreign authorized institutions, according to data on the CBC website for credit institutions.
Potential game changer
In a memo addressed to all AML officers and credit institutions was a list of new clauses that introduce enhanced requirements for certain financial institutions, such as the need to meet clients in person, and conduct face-to-face meetings, with regard to meeting Know Your Customer (KYC)) requirements, satisfying related AML and preventing of terrorist financing.
A key part of this news is that the ultimate beneficiary owners of companies that hold accounts at financial institutions in Cyprus will have to come forward in order to comply, as explained below and in the CBC update. This is important because of the way the nominee structure follows for the way Cypriot companies are formed, which may involve 'holding companies' or appointed representatives whilst the real owners remain largely unknown on the surface. An excerpt of the revised provisions shows two of the new several clauses that were introduced by the CBC.
Administrative scramble
This update will surely create administrative challenges, and the need for the right technology to be used in addition to a firm’s own changes to its policies, controls, and internal and external documents such as customer agreements and related disclosures.
Nearly all online financial institutions rely on the use of 3rd party systems for verifying clients data, such as Complinet and other solutions that help verify identity and check clients names against lists of known suspicious persons and against blacklisted individuals during the account opening process (i.e. for banks or brokerages where AML is needed for processing deposits/withdrawals).
These approaches may no longer cover all the related KYC and AML compliance checks, although they are still likely to be used for their inherent value, as face to face meetings will be required for certain scenarios that cannot be solved with technology, for the credit institutions in Cyprus. However, one of the clauses noted that online video meetings could be acceptable for the meetings. An excerpt from the CBC memo can be seen below which introduces the required face-to-face meeting related clause under section 86A.
The push towards transparency
This was the fourth time that the CBC amended the AML provisions since the first amendment in its 2013 Directive, and it was in line with its March 2013 agenda outlined with the international monetary fund (IMF), European Central Bank (ECB) and European Commission (EC).
Many Cypriot Investment Firms (CIFs) involved in both Forex or binary options related business may hold funds at some of the affected credit institutions in Cyprus that must comply with the new provisions within the allotted time or face losing their banking relationships with any relevant institutions unless all new compliance checks are met.
A statement from CBC noted: "Today's amendment is part of a continuous effort to further boost the regulatory framework, always with the aim of zero tolerance to deficiencies or weaknesses which could possibly lead to opportunities of money laundering, or terrorist financing,” according to a Reuters article.
FX Volatility Impacts Q1 Revenue of Compagnie Financière Tradition
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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