The Cyprus Securities and Exchange Commission ('the CySEC'), has issued a new Circular C501 EU and wishes to draw the attention of Regulated Entities to additional restrictive measures of the Council of the European Union (‘EU Council’), dated 8 April 2022, imposed against Russia due to its military aggression against Ukraine.
The said restrictive measures impose, inter alia, restrictions on trusts (Article 5m of COUNCIL REGULATION (EU) 2022/576).
Furthermore, regarding the additional restrictive measures, the following articles have been amended, inter alia:
(A) Regarding COUNCIL REGULATION (EU) 2022/576 of 8 April 2022, amending Regulation (EU) No 833/2014:
Article 5f (paragraph 1 is replaced by the following):
It shall be prohibited to sell transferable securities denominated in any official currency of a Member State issued after 12 April 2022 or units in collective investment undertakings providing exposure to such securities, to any Russian national or natural person residing in Russia or any legal person, entity or body established in Russia.
Article 5b (replaced by the following):
It shall be prohibited to accept any deposits from Russian nationals or natural persons residing in Russia, or legal persons, entities or bodies established in Russia, if the total value of deposits of the natural or legal person, entity or body per credit institution exceeds EUR 100 000.
It shall be prohibited to provide crypto-asset wallet, account or custody services to Russian nationals or natural persons residing in Russia, or legal persons, entities or bodies established in Russia, if the total value of crypto-assets of the natural or legal person, entity or body per wallet, account or custody provider exceeds EUR 10 000.
(B) Regarding COUNCIL REGULATION (EU) 2022/577 of 8 April 2022, amending Regulation (EC) No 765/2006:
Article 1y (paragraph 1 is replaced by the following):
It shall be prohibited to sell transferable securities denominated in any official currency of a Member State issued after 12 April 2022 or units in collective investment undertakings providing exposure to such securities, to any Belarusian national or natural person residing in Belarus or any legal person, entity or body established in Belarus.
Considering points (a) and (b) above, all Regulated Entities affected by the said restrictive measures are expected to inform CySEC by Wednesday, 20 April 2022, at the latest, using the email address aml@cysec.gov.cy, regarding:
1. Article 5f of COUNCIL REGULATION (EU) 2022/576 and Article 1y of COUNCIL REGULATION (EU) 2022/577:
(i) For the appropriate actions/measures taken or intended to be taken by the Regulated Entity for compliance with paragraph 1 of the said Articles, if applicable.
(ii) For the level of exposure of the Regulated Entity, by providing information regarding the business operations (exposure to clients affected as opposed to the total clientele) and the possible impact on the Regulated Entity.
2. Article 5b of COUNCIL REGULATION (EU) 2022/576:
(i) For the appropriate actions/measures taken or intended to be taken by the Regulated Entity for compliance with paragraphs 1 and 2 of the said Article, if applicable.
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