The Cyprus Securities and Exchange Commission (CySEC) hastoday released a practical guide on maintaining effective and efficientsanctions screening systems. This guide includes the findings of CySEC's recentassessment on the effectiveness and efficiency of the sanctions screeningsystems used by regulated entities in Cyprus.CySEC Conducts Thematic Inspections on SanctionsThe thematic inspections were carried out between April andNovember 2024. They involved a range of regulated entities, including CyprusInvestment Firms, Alternative Investment Fund Managers, AdministrativeService Providers, Funds, Fund Managers, and Crypto Asset ServiceProviders. The primary focus of these inspections was to evaluatecompliance with the sanctions requirements set out in the United NationsSecurity Council Resolutions and European Union CouncilDecisions and Regulations."All regulated entities are obliged to have adequateinternal policies, procedures and controls in place, for the implementation ofthe provisions of Sanctions/Restrictive Measures, including screening tools,"CySEC’s Chairman Dr George Theocharides said.Δελτίο Τύπου – Η ΕΚΚ δημοσίευσε πρακτικό οδηγό για τη διατήρηση αποτελεσματικών και αποδοτικών Συστημάτων Ελέγχου Κυρώσεωνhttps://t.co/cr3xngWdsOPress Release – CySEC published practical guide for effective and efficient Sanctions Screening Systemshttps://t.co/UqpKhAnZo5— CySEC - Cyprus Securities and Exchange Commission (@CySEC_official) February 27, 2025CySEC Identifies Gaps in Sanctions ComplianceIn particular, the inspections centered on the screening ofindividuals and entities listed on the UN and EU Sanctions Lists. Additionally,the screening practices concerning US and UK Sanctions Lists were alsoreviewed. The aim was to assess whether regulated entities are adequatelyidentifying designated persons and complying with these internationalsanctions.CySEC's inspections resulted in the identification ofseveral best practices related to sanctions screening. However, the Commissionalso found that there are areas where the effectiveness and efficiency of thesanctions screening systems used by regulated entities can be improved. TheCommission noted that these improvements are necessary for ensuring fullcompliance with the relevant sanctions regulations."Regulated entities should consider the CySEC’ssupervisory expectations set out in the Guidance Paper as a benchmark, so as toimplement best practices identified in a risk-based and proportionate manner,"Theocharides wrote in a letter to the regulated entities. This article was written by Tareq Sikder at www.financemagnates.com.