Mayzus CySEC fine of €12k over AML violations


31 March AtoZForex, Amsterdam — At the start of 2016, the Cyprus Securities and Exchange Commission (CySEC) has increased its regulatory overseer in the jurisdiction. Now months later it already yielded results, considering that CySEC has issued a series of administrative fines for the slacking Cyprus Investment firms (CIF). Adding to the list, today the Cypriot watchdog announced a €12,000 Mayzus CySEC fine.

Mayzus Investment Company Limited (Mayzus) is a STP Forex broker regulated by CySEC under the license number 093/08. The retail Forex broker provides services through the MT4 platform and Currenex, a wide range of tradable instruments. Relating back to the Mayzus CySEC fine, today CySEC disclosed publicly that the fine was issued due to non-compliance over two of regulatory anti-money laundering rules:

I. The Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, as amended from time to time (‘L.188(Ι)/2007’)

II. The Directive DI 144-2007-08 of 2012 of the Securities and Exchange Commission for the Prevention of Money Laundering and Terrorist Financing (‘Directive 8’)

Mayzus CySEC fine divided in 2 categories

Despite today the fine was announced by CySEC, in reality on the 29th of February 2016 the Board of Commission already decided to impose the Cypriot Investment Firm (CIF) an administrative fine. In regards to the breakdown of the €12,000 Mayzus CySEC fine, two categories have been distinguished by CySEC:

Α. €8.000 was issued for non-compliance with Section 58(a) of L.188(Ι)/2007, as Mayzus did not apply adequate and appropriate measures and procedures in relation to customer identification and customer due diligence, in accordance with the provisions of Section 61(1), paragraphs (c) and (d) and Section 64(1)(a) of L.188(Ι)/2007 and of paragraphs 18(2), 18(3), 21(5), subparagraphs (b) and (c), 21(6), 21(7), 24, 26(1) and 26(2) of Directive 8.

B. €4.000 was issued for violating of paragraph 5(d) of Directive 8, as its Board of Directors did not ensure the implementation of all the requirements of L.188(Ι)/2007 and of Directive 8 and there were no indications that it made sure that appropriate, efficient and sufficient systems and controls for achieving compliance were introduced.

Relatively low CySEC fine

In forming the total amount of the fine, the Cyprus Securities and Exchange Commission has taken various counts into consideration. One of which is that CySEC noticed that Mayzus was committed to take corrective actions to remedy the case and to become fully compliant with the legal provisions. Compared to the €253,000 AnyOption CySEC fine of yesterday, Mayzus fine is much lower, however the reason behind this fine is also relatively not too much vital. Often regulators omit issuing fines for these points but issue warnings pushing the responsible parties take action.

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