FCA becomes AML/CTF supervisor for crypto companies

The UK’s Financial Conduct Authority (FCA) has become the new anti-money laundering (AML) and counter terrorist financing (CTF) supervisor for businesses with cryptoasset activities.

Any business in the UK with operations related to such assets will now need to check whether they fall under the regulation.

All companies carrying out cryptoasset activity which falls under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs) must now register with the FCA before conducting business. Existing businesses already conducting cryptoasset activity, before 10 January 2020, can continue to operate but must meet compliance immediately.

Companies undertaking cryptoasset activities need to be registered by January 2021. To ensure this is completed before the deadline, businesses should complete their applications by June 2020.

Existing Financial Services and Markets Act firms, e-money institutions or payment services businesses that are engaged with cryptoasset activity must also apply for registration.

One of the new requirements of cryptoasset businesses is to identify and assess the risks of money laundering and terrorist financing they are subject to. They must also have policies, systems and controls in place to mitigate the risk of such incidents occurring.

Depending on the size and nature of a business, they must appoint an individual on the board or senior management responsible for compliance with MLR.

Businesses are also now required to complete customer due diligence when entering a business relationship or occasional transactions.

The new rules also impose enhanced due diligence when interacting customers with a high-risk of money laundering or terrorist financing.

Finally, cryptoasset businesses need to conduct ongoing monitoring of all customers to ensure transactions are consistent with the customer risk profile.

A full list of new requirements can be found on the FCA’s website.

Enjoyed the story? 

Subscribe to our weekly RegTech newsletter and get the latest industry news & research

Copyright © 2018 RegTech Analyst


The following investor(s) were tagged in this article.