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The Money Laundering Regulations are now applicable to cryptoasset firms

Oct 20, 2020 12:00:00 AM

What is happening?

The Money Laundering Regulations are now applicable to cryptoasset firms, specifically to exchange providers, firms issuing new cryptoassets, custodian wallet providers and firms providing relevant open-source software.

New cryptoasset firms that began operating after 10 January 2020 must be compliant with the Money Laundering Regulations 2017, and they must register for this with the FCA before conducting any business. Firms trading before 10 January 2020 have until 10 January 2021 to be registered with the FCA or stop their cryptoasset activities.

The initial registration fee is £2,000 for businesses with UK cryptoasset income up to £250,000 and £10,000 for businesses over the income limit.

What do you need to do?

During their registration process, firms may need to be aware of some common shortcomings with applications, which may include:

    • Inadequate systems and controls in place to mitigate risk, such as not having enhanced due diligence procedures,
    • Firms based overseas and targeting UK customers will incur problems if the firm or any senior managers are not based in the UK,
    • Issues with senior managers passing the ‘fit and proper’ tests, and
    • An over-reliance on automated tools for identification and verification of customers’ identities and/or transaction monitoring.

How can we help you?

Our expert team has extensive expertise in cryptocurrencies, money laundering regulations and the FCA’s registration process.

Our approach

    1. Helping you to prepare and submit your application
    2. Reviewing your application before you submit it to the FCA
    3. If required, specialist compliance support to answer any FCA questions and to prepare or update your current policies, processes, systems, and controls.

We have a dedicated financial crime team who have assisted multiple firms in complying with their obligations under the AML regulations, including cryptoasset businesses. Our in-depth knowledge and experience make us well-suited to support your business through the FCA cryptocurrencies AML registration process.

Get in touch

If you’d like to know more about how we can help you with your cryptoasset firm’s MLR registration application or with any other aspect of FCA compliance, our expert team is here to help. Contact us today on 0207 436 0630 – or email info@thistleinitiatives.co.uk.