C527- EU Council's Restrictive Measures against Russia due to its military aggression against Ukraine – “maintenance and alignment” sanctions package
The Cyprus Securities and Exchange Commission ('the CySEC'), has issued a new Circular 527, in relation to “Sanctions/Restrictive Measures against Russia due to its military aggression against Ukraine”, regarding the amendment of Article 9 of Council Regulation (EU) 2022/1273 of 21 July 2022 implementing Regulation (EU) No. 269/2014:
Article 9 (replaced by the following):
1. It shall be prohibited to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the measures referred to in Article 2.
2. Natural or legal persons, entities or bodies listed in Annex I, shall:
(a) report before 1 September 2022 or within 6 weeks from the date of listing in Annex I, whichever is latest, funds or economic resources within the jurisdiction of a Member State belonging to, owned, held or controlled by them, to the competent authority of the Member State where those funds or economic resources are located; and
(b) cooperate with the competent authority in any verification of such information.
3. Failure to comply with paragraph 2 shall be considered as participation, as referred to in paragraph 1, in activities the object or effect of which is to circumvent the measures referred to in Article 2.
Natural or legal persons, entities, or bodies listed in Annex I of Regulation (EU) No. 269/2014 (designated persons) are obliged to report to the relevant competent authority, before the 1st of September 2022 or within 6 weeks of listing in Annex I, the funds or economic resources belonging to them, own, held or controlled by them, and which are located in the Republic of Cyprus.
The Ministry of Finance has issued a relevant announcement, dated 9 August 2022, which includes guidelines on how to disclose the funds or economic resources of designated persons, as well as the relevant disclosure form.
If you have questions or need further advice please do not hesitate to contact us to discuss how we can help you.
Written by Constantinos Constantinides, Director of Financial Associates International FAI Comply