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AML

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In February 2018, the UK Treasury Committee launched an inquiry into digital currencies.  In the course of its inquiry the Committee received oral and written evidence from a number of key players in the crypto space, including representatives from Ripple, CryptoUK and Blockchain, together with evidence from the FCA (the UK financial services regulator), the Bank of England and HM Treasury. Earlier than expected, the Treasury Committee published its crypto-assets report and conclusions and recommendations…

On 3 July 2018, the European Banking Authority (EBA) published a report outlining the prudential risks and opportunities arising from FinTech as part of its 2018 FinTech Roadmap. The report includes useful guidance on the use of distributed ledger technology (DLT) for trade finance and CDD (although the EBA is keen to note that the report should not be considered to provide an exhaustive list of possible prudential risks and opportunities that may arise.) Trade…

Lithuania becomes the latest jurisdiction to release guidance in relation to ICOs. On 8 June 2018, the Lithuanian Government released new Guidelines to deal with what it referred to as an “explosion of ICOs” in the country.  Lithuania heralds itself as a leader in FinTech and has published the ICO Guidelines as a step towards more “certainty and transparency in the regulatory, taxation [and] accounting” requirements of ICOs, and also, importantly, to encourage the crypto…

What’s changed The U.S. Government is considering adding digital currency addresses affiliated with individuals and entities identified to the List of Specially Designated Nationals and Blocked Persons (“SDN List”).  This would put U.S. persons on notice that doing business with those digital addresses may be prohibited, increasing compliance considerations for businesses delving into the world of virtual currency. What it means for you On March 19, 2018, the U.S. Office of Foreign Assets Control (“OFAC”)…

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has recently published draft anti-money laundering and counter-terrorism financing rules (AML/CTF Rules) which are relevant to digital currency exchange service providers following the passage of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017 (Act) in December 2017. The new laws are scheduled to come into effect on 13 June 2018.  Tthe Act introduces new laws to regulate digital currency exchange service providers in the same way…

In an effort to create clarity for market participants, the Swiss Financial Market Supervisory Authority FINMA published guidelines, on Friday, February 16, that set out how it intends to apply financial market legislation in handling inquiries from ICO organizers. The guidelines also define the information FINMA will require to deal with such inquiries and the principles upon which it will base its responses.  Focusing on anti-money laundering and securities regulation, FINMA plans to handle ICO…

In a speech yesterday, Sigal Mandelker, the under secretary for terrorism and financial intelligence for the US Department of the Treasury, pushed for stronger regulation of cryptocurrency.  She stated that Treasury regulates virtual currency exchangers as money transmitters and requires them to abide by Bank Secrecy Act obligations.  Of specific concern is that these exchanges be mindful of the anti-money laundering (AML) and combating the financing of terrorism (CFT) obligations.  She said: Virtual currency businesses…

We have reported often on statements by various governments concerning cryptocurrency regulation.  Most recently  In an interview with CNN over the weekend, IMF Chief (and former Chairman of our law firm) Christine Lagarde said that such regulation is “inevitable.”  She noted that that there is probably quite a bit of dark activity [in cryptocurrencies] and that the IMF remains focused on anti-money laundering and countering the financing of terrorism, both of which are implicated in…

Australia has introduced new laws to regulate digital currency exchange service providers in the same way as providers of traditional currency exchange services. Businesses providing digital currency exchange services (for example, services converting money into bitcoin and vice versa) will need to be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and comply with anti-money laundering requirements, following the passage of Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 last month. This follows…