The Cyprus Securities and Exchange Commission has rolled out a new legal framework aimed at enforcing international sanctions more effectively. The changes took effect immediately and apply to all firms regulated by CySEC. This includes Cyprus Investment Firms that offer contracts for difference to retail clients.

The move aligns Cyprus with recent European Union developments on sanctions enforcement. It sets out clear procedures for identifying and managing potential breaches of EU and United Nations sanctions.

A new national body has been created to support these efforts. Known as the National Sanctions Implementation Unit, it operates under the Ministry of Finance. Its role is to coordinate sanctions enforcement across the country.

New Rules Impact CFD Brokers

Although the directive is not tailored to CFDs, its scope covers all CIFs. This includes brokers that deal primarily with retail traders in leveraged products like CFDs.

You may find it interesting at FinanceMagnates.com: Cyprus Stock Exchange Suspends Three Firms Following CySEC Directive for Reporting Failures.

CFD brokers will need to review their internal controls to meet the new compliance standards. CySEC has told firms to improve how they monitor transactions, report suspicious activity, and escalate issues when needed. Non-compliance could result in administrative penalties.