CySEC AML Chapter 3 Flashcards: Legal and Regulatory Requirements | ExamPass CY

All 15 cards in this deck

What is MOKAS?: Cyprus's Financial Intelligence Unit — it receives, evaluates and analyses suspicious activity reports on ML, predicate offences and TF, and can request further information. Established under Article 54.
Under whom does the Unit operate, and which three bodies constitute it?: It operates under the Attorney General, and is made up of the Attorney General, the Chief of Police and the Director of Customs and Excise.
How long can the Unit's freeze/suspension of a transaction last?: Initially up to 7 business days, renewable to a total of 30 business days.

What is the standard maximum administrative fine CySEC can impose, and the higher figure for credit/financial institutions?: €1,000,000 standard; up to €5,000,000 (or 10% of total annual turnover) for credit and financial institutions.
What are the two ML penalty tiers by mental state?: Actual knowledge: up to 14 years and/or €500,000. 'Ought to have known': up to 5 years and/or €50,000.
What penalties attach to failure to disclose, tipping-off, and supplying false ID?: Failure to disclose (Art 27): 2 yrs/€5,000. Tipping-off: 2 yrs/€50,000. False/forged ID: 2 yrs/€100,000.

What is tipping-off?: Notifying the customer or a third party that a suspicious-transaction report is being made to MOKAS — which would let them cover their tracks.

How many EU AML Directives have been transposed into Cyprus law, and when?: Six EU Directives, transposed into Cyprus law in 2022.

When and by whom was the FATF set up, and what is the status of its Recommendations?: Set up in 1989 by the G7. Its 40 Recommendations are the international standard but soft law — not directly binding legislation.
How often does the FATF Plenary meet, and what happened to Russia in 2023?: Three times per year. Russia's FATF membership was suspended on 24 February 2023. The European Commission is itself a FATF member.

What is MONEYVAL and whom does it assess?: The Council of Europe's committee of experts on AML/CFT; it evaluates Council of Europe states that are not FATF members and recommends improvements.

What are the Sanctions Law penalties for natural vs legal persons?: Natural person: up to 2 years and/or €100,000. Legal person: up to €300,000.

Whose approval is generally required to prosecute these offences?: The Attorney General of the Republic — a consistent gatekeeping role for prosecutions.

What does legal privilege protect, and what is excluded?: Genuine lawyer-client communications about legal advice or proceedings; communications made to help commit an offence are not protected.

For an employee of a CySEC-supervised firm, who is the protected internal route for reporting suspicion?: The AML Compliance Officer, who then handles onward reporting to the Unit.