CryEngine 1: In Crysis 1 the workaround was to press "Alt+ Enter" in the menu and that unlocked the engine and it ran at 120Hz.
CryEngine 2: In Crysis 2 the workaround was to have an Nvidia Card (i had 2 GTX570's in Sli) then go to the Driver panel and Force "Highest available refresh rate". This unlocked the Engine and it ran at 120Hz. If you have an AMD card you are out of luck because there is no way to force 120Hz (i think, i've searched for many days)
CryEngine 3: same lock apparently.
when crysis 1 lauched this wasn't an issue because 120Hz LCD monitors didn't exists, Crysis 2 they were afew on the market and they had just started gaining some ground, now Crysis 3 and 120Hz monitors are very prevalent and a game with such a heavy emphasis on Graphics MUST have this option.