Archives: Lessons

CySEC Reporting Obligations

Month Reporting Obligation Form(s) Period Deadline January Complaints 144-002-01 December 5th of January January AML Monthly Prevention Statement 144-08-11 December 15th of January January Notification of Shareholders and Tied Agents Previous Year 31st of January January Quarterly Statistics QST-CIF Q4 Previous Year 31st of January February Complaints 144-002-01 January 5th of February February AML Monthly …

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CFDs I – Lesson 8 – Various restrictions on CFDs

Over time, regulators, and especially CySEC has introduced various restrictions n CFDs. See below 1- Leverage limit has been placed according to ESMA requirements which are o   30:1 for major currency pairs; o   20:1 for non-major currency pairs, gold and major indices; o   10:1 for commodities other than gold and non-major equity indices; o   5:1 for individual equities and …

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CFDs I – Lesson 7 – Reporting of CFDs under EMIR & MIFIR

Reporting of CFDs under EMIR The reporting requirement represents the most sweeping EMIR (Regulation 648/2012) innovation as all counterparties to all derivatives contracts (OTC and exchange-traded) need to comply and there are virtually no exceptions, all exchange and OTC derivative trades, trades with non-financial counterparties must be reported alike. As regards intragroup trades there is exemption available as …

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CFDs I – Lesson 1 – What are CFDs

A contract for difference (CFD) is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies and treasuries. CFD trading explained Some of the benefits of CFD trading are that you can trade on …

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AML CY – Lesson 15 – Examples of Suspicious Transactions/Activities Related to Money Laundering

1. Transfer of funds between bank accounts established in various countries, through Cyprus, without justified reason. 2. Transfer of funds between companies belonging to the same group, without justified reason. 3. Deposits performed without submission of supporting documentation in an accepted form (e.g. invoice, agreements etc.). 4. Supporting documentation that is submitted in relation to …

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AML CY – Lesson 14 – Legal Persons – CDD Measures – Verification and Certification

Type of Information & Source of Verification   Incorporation Name, Date & Number : Certified true copies of the statutory documents confirming the Incorporation date and number u(e.g. for Cyprus Companies Certificate of Incorporation)   Registered Office*  : Certified true copies of the statutory documents confirming the registered office (e.g. for Cyprus Companies Certificate of …

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AML CY – Lesson 13 – Natural Persons – CDD Measures – Verification & Certification

Natural Persons Client identification The full name (including other names used), date of birth and residential address (the address at which the person can be located) should be obtained. Additional information like his source and size of wealth, Tax residence, Tax identification number, signature, his profession or occupation and any other relevant information should be …

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AML CY – Lesson 11 – Higher Risk

1. Customer risk factors: (a) the business relationship is conducted in unusual circumstances (b) customers that are resident in geographical areas of higher risk as (c) legal persons or arrangements that are personal asset-holding vehicles (d) companies that have nominee shareholders or shares in bearer form u(e) businesses that are cash-intensive (f) the ownership structure …

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AML CY – Lesson 10 – Lower Risk

1. Customer risk factors: (a) Public companies listed on a stock exchange and subject to disclosure requirements, either by stock exchange rules or through law or enforceable means, which impose requirements to ensure adequate transparency of beneficial ownership (b) public administrations or enterprises (c) customers that are resident in geographical areas of lower risk 2. …

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AML CY – Lesson 8 – Record Keeping & Suspicious Transactions Reporting

Record Keeping Firms must retain the following records and information for a period of five years after the end of a business relationship with a client or after the date a transaction was completed: (a) Copies and information for compliance with the Client Due Diligence (CDD) requirements. (b) Evidence and records of transactions both domestic …

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