CySEC Circular C517

CySEC Circular C517

In addition to Circulars C489, C501 and C511, the Cyprus Securities and Exchange Commission (“CySEC”) wishes to draw the attention of regulated entities to the additional restrictive measures of the Council of the European Union (“EU Council”) that were introduced on June 3, 2022 against Russia in connection with its military aggression against Ukraine.
CySEC circular C517 implies restrictive measures of the EU Council against Russia in connection with its military aggression against Ukraine. The EU adopts the sixth package of sanctions.
Circular C517 (“Circular”) of June 15, 2022 on the restrictive measures of the EU Council against Russia in connection with its military aggression against Ukraine. The EU is also adopting the sixth package of sanctions in accordance with Council Regulation EU 2022/879 of 3 June 2022 amending Regulation (EU) No 833/2014.

In light of Circulars C489, C501 and C511, CySEC draws the attention of Regulated Entities to the additional restrictive measures of the Council of the European Union (“EU Council”) dated June 3, 2022, imposed on Russia.

Key Takeaways from CySEC Circular C517:

1. It is prohibited to register, provide a registered office, business or administrative address, as well as management services, a trust or any similar legal arrangement that has as a trustee or beneficiary:
   (a) Russian citizens or individuals residing in Russia;
   (b) legal persons, organizations or bodies established in Russia;
   (c) legal persons, organizations or bodies whose ownership rights are directly or indirectly owned by more than 50% of the natural or legal person, organization or body referred to in paragraphs (a) or (b);
   (d) entities, entities or bodies controlled by a person or entity, entity or body referred to in paragraphs (a), (b) or (c);
   (e) natural or legal persons, organizations or bodies acting on behalf of or at the direction of a natural or legal person, organization or body referred to in paragraphs (a), (b), (c) or (d).
   As of July 5, 2022, it is prohibited to act as a trustee, nominee, director, secretary, or similar position for a trust or similar legal arrangement as specified in paragraph 1.
   […]
2. The purchase, import or transfer, directly or indirectly, of crude oil or petroleum products listed in Schedule XXV, if they originate in Russia or are exported from Russia, is prohibited.
   It is prohibited to provide, directly or indirectly, technical assistance, brokerage, financing or financial assistance, or any other service related to the prohibition in paragraph 1.
3. It is prohibited to directly or indirectly provide accounting, auditing, including statutory audit, tax advisory services, as well as business and management consulting services or public relations services: (a) to the Government of Russia; or (b) legal persons, organizations or bodies established in Russia.

Taking into account these amendments/additions to Council Regulation EU 2022/879, all regulated entities that are subject to these restrictive measures must inform CySEC no later than Tuesday, June 21, 2022, of the relevant actions/measures taken or planned, which should enter into compliance with Articles 5m, 5n and 3m.

As a reminder, the obligation of Regulated Persons to report to CySEC if they have a business relationship with individuals or entities subject to EU Council Restrictive Measures against Russia in connection with its military aggression against Ukraine constitutes an ongoing obligation and requires compliance with existing Council Restrictive Measures and those that may be introduced in the future against Russia.

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