CySEC orders firms to investigate any links to Mossack Fonseca


The Cyprus Securities and Exchange Commission (CySEC) today issued a circular addressed at all regulated entities, including Cyprus investment firms (CIFs), in relation to the so-called “Panama Papers”.

The securities regulator notes that after the leak of documents of Mossack Fonseca, a series of documents referred to as “Panama Papers” appeared online. These documents refer to a number of persons (legal and natural), which may be involved in tax evasion, corruption and/or money laundering activities.

CySEC says that under article 58(d) of the Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007-2016, Regulated Entities are required to apply adequate and appropriate systems and procedures in relation to internal control, risk assessment and risk management in order to prevent money laundering and terrorist financing.

With regard to this, the regulator orders Regulated Entities to investigate their records and identify:

  • Whether they maintain or maintained any relationship with the company Mossack Fonseca, either directly or with any third person acting for or representing Mossack Fonseca;
  • Whether they maintain or maintained any business relationship with customers introduced or managed by Mossack Fonseca or by any third person acting for or representing Mossack Fonseca.
  • Whether they maintain any business relationship with any other person, who appears to be included in the said documents.

CySEC says that the Regulated Entities are required to inform it no later than April 20, 2016, at [email protected] of the results of the investigation and of the measures taken, in relation to the allegations mentioned in the Panama Papers.

You can view the CySEC circular by clicking here.

(The article was amended in accordance with FTI Consulting’ demands. These included removal of CySEC’s image from the article to avoid misconception of CySEC and the law firm being connected in any way, as well as a change of the term “watchdog” with “securities regulator”.)

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CySEC orders firms to investigate any links to Mossack Fonseca

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