CySEC’s Announcement on Allegations Against CIFs

The Cyprus Securities and Exchange Commission (“CySEC”) issued an
Announcement on the 2nd of June in response to allegations by the Mayor of
Paphos linking Cyprus Investment Firms to Latin American drug cartels.

CySEC’s spokesperson emphasised its regulatory role in supervising
domestic investment firms in accordance with the European Legislation.
He further stated that the foreign exchange (forex) market, being the largest and
most liquid financial market worldwide, with many financial entities holding
licenses across multiple jurisdictions, lacks a central Authority. At the same time
CySEC, as the Cyprus National Regulator, enforces strict compliance with the EU
Markets in Financial Instruments Directive (MiFID II) and the latest EU Anti-Money
Laundering (AML) Directives and Regulations.

In accordance with the Announcement, CySEC is currently collecting relevant
data to assess whether further investigation is required and affirms its
cooperation with National and International Authorities, stating that its priority is
“the protection of investors and the preservation of the credibility and
transparency of the Cypriot capital market.”