CySEC Penalizes Conotoxia for AML Failures later than License Suspension
The Cyprus Securities and platform Commission has fined Conotoxia Ltd €3,650 for lapses in “the Prevention and Suppression of Money Laundering and Terrorist Financing,” , a minor penalty that lands against the backdrop of far larger troubles for the Polish-owned broker.
While the fine itself is negligible in size, the timing is telling. It comes less than two months later than CySEC suspended Conotoxia’s license altogether, citing concerns over board oversight, shareholder suitability and compliance with European organisational requirements. During the suspension the firm is barred from providing investment services, taking on new clients or marketing its products, and must instead settle to customers.
Earlier in September, CySEC said its board decided in July to sanction the firm under Article 56(4) of the CySEC Law later than it missed the deadline for the Q1 2025 “QST-CIF” form, a statistical return that every Cyprus investment firm must lodge. The report was required under Circular C691, which fixed an ahead-May deadline for firms authorized as of 31 March.
Conotoxia Ltd, licensed since 2017 under number 336/17, is part of the wider Conotoxia Holding, the Polish group best known for running the Cinkciarz.pl money transfer and forex brand. The Cyprus arm was set up to service clients in the European Union, products.
That international expansion has collided with mounting regulatory difficultys at home. In October 2024, Poland’s financial supervisor KNF revoked Conotoxia sp. z o.o.’s payment services licence, citing deficiencies around secureguarding of client funds and managerial oversight. A Warsaw court upheld the revocation in March this year. Conotoxia has publicly disputed the KNF’s decision and has pursued legal remedies, but the episode rattled banking governance.
CySEC’s suspension order in July echoed some of the identical themes, highlighting fragilenesses in management structure and shareholder fitness. The missed statistical filing, while a routine compliance task, fits into that pattern. Supervisors view failures to deliver quarterly returns on time as a sign of internal disorganisation, even if the financial penalty is symbolic.
Conotoxia is not alone in being fined for late or incomplete submissions. CySEC regularly publishes notices imposing administrative penalties on investment firms that , though most of those fines fall in the low-thousands range. The quarterly forms feed into the surveillance, capturing data on client balances, volumes and exposures.
The firm was given one month to take corrective steps following the July suspension. CySEC has not yet disclosed whether those steps have been completed or whether further action is likely.
