June 3, AtoZForex, Vilnius – The Cyprus Securities and Exchange Commission (CySEC) has made progress in its investigation of the CIFs, ASPs, MC UCITS, AIFMs, AIFLNP involved in the Panama papers leaks. At present, a detailed CySEC Panama Papers list of firms got assembled. The case involved the giant leak of 11.5 million financial documents and legal records. The documents revealed the mechanism that allowed corruption and crime hidden by secretive offshore companies.
Earlier this year, CySEC's chairwoman, Demetra Kalogerou indicated that the Cypriot regulator started an investigation on CIFs, ASPs, MC UCITS, AIFMs, AIFLNP involved with the Panama Leaks. Demetra Kalogerou commented that the data was collected from the supervised companies and it was ‘being processed’. The main goal of CySEC's Panama Papers investigation is to identify:
- The existence of any relationship with the law firm Mossack Fonseca, either directly or via a third party acting for or representing Mossack Fonseca.
- Check if they have had or still have any business relationship with customers introduced or managed by Mossack Fonseca, directly or through a third party
- Any direct business dealings with any individual or organizations implicated in the Panama papers.
CySEC Panama Papers list totals 63 entities
The Cypriot regulator has collected the data from 413 regulated entities. CySEC investigated any possible ties of the companies or persons registered in Cyprus with the law firm Mossack Fonseca. The investigation has been successful, considering that the CySEC Panama Papers list of firms now totals 63 regulated entities. These firms had or have a business relationship with Mossack Fonseca, the law firm involved in the Panama papers issue.
Additionally, CySEC demanded its supervisory entities to implement the further overseeing and evaluating of Panama Leaks related matters. What is more, in the official announcement the Cypriot regulator has asked the companies to continue screen their clients’ business relationships, in accordance with the Prevention and Suppression of Money Laundering and Terrorist Financing Law.
Who are the 63 entities? CySEC's Chair responds
The Cypriot watchdog did not disclose any details of these 63 identified firms. For additional information, AtoZForex has contacted the CySEC officials. In response to our request CySEC's Chairwoman, Demetra Kalogerou clarified the following:
"Please note that CySEC does not publish the names of the said 63 regulated entities, since having a relationship with Mossack Fonseca directly or indirectly and/or maintained or maintaining a business relationship with clients that are mentioned in the Panama papers, does not necessarily imply any suspicious activities relating to money laundering."
What are the consequences for the firms involved?
As CySEC's Chair already mentioned in her statement, the presence of any company or person on the list does not determine that the firm/person is involved in any kind of illegal activities related to money laundering. Now that the CySEC Panama Papers list of the 63 firms is present, it will mean more investigation is required. This is demanded to confirm the nature of business relationships of the regulated entities with the above-mentioned firms.
What are your thoughts on the number of identified firms? Think we missed something? Let us know down in the comments section.