CySEC announces €50,000 settlement with Freedom Finance Europe

The Cyprus Securities and Exchange Commission (CySEC) announced that it has reached a €50,000 settlement with the Cyprus Investment Firm (CIF) Freedom Finance Europe Ltd, following an investigation into the company’s potential non-compliance with the Prevention and Suppression of Money Laundering Activities Law of 2007.

The Commission’s investigation was into the period 2.11.2017-1.1.2019 and looked at the CIF’s compliance with Article 58(a) of L.188(Ι)/2007, regarding the implementation of adequate and appropriate procedures in relation to client’s identification and the exercise of due diligence regarding clients, both before the conclusion of the business relationship with clients as well as during the business relationship with clients; and Article 58(e) of L.188(Ι)/2007, regarding the implementation of adequate and appropriate policies, controls and procedures in relation to the detail examination of each transaction which by its nature may be considered to be particularly vulnerable to be associated with money laundering offences or terrorist financing, and in particular complex or unusually large transactions and all other unusual patterns of transactions which have no apparent economic or visible lawful purpose.

“The settlement reached with the Company, for the possible violations, is for the amount of €50,000,” CySEC said. “The Company has paid the amount of €50,000.”

It is noted that all amounts payable relating to settlement agreements are considered revenue (income) of the Treasury of the Republic and do not constitute income of CySEC.

CySEC also noted that under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, it may reach a settlement agreement regarding any violation or possible violation, act or omission for which there is reasonable ground to believe that is in breach of the provisions of legislation under the regulatory remit of CySEC.