30th December 2024
The FIAU would like to inform subject persons, particularly crypto-asset service providers, that a series of amendments to the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) were published on the 30th of December 2024 in the Government Gazette by virtue of Legal Notice 379 of 2024. These amendments align the domestic AML/CFT framework with recent EU and local legislative developments in the crypto-assets sector, namely:
- The Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114).
- The Transfer of Funds (recast) Regulation (Regulation (EU) 2023/1113).
- The amendments to the Virtual Financial Assets Act that came into force by virtue of Act XIV of 2024.
- The amendments to the 4th AML Directive (Directive (EU) 2015/849) as set out in Article 38 of the Transfer of Funds (recast)Regulation.
To complement these amendments, the FIAU has issued a revised version of the Implementing Procedures – Part II for Crypto-Asset Service Providers. The revisions align these sectorial Implementing Procedures with the above developments and the amendments to the PMLFTR. They also incorporate the updated EBA ML/FT Risk Factor Guidelines issued on 16 January 2024.
The revisions also take into account the feedback received from industry stakeholders during the consultation period which concluded on 29 November 2024. In this regard, the FIAU would like to take the opportunity to thank all those who have submitted their valuable feedback.
Since the document underwent extensive restructuring, CASPs are encouraged to read the document in its entirety. However, for ease of reference, the key revisions are being summarised below:
- The introduction of additional risk factors and corresponding measures specific to the crypto-assets sector as outlined in the revised EBA ML/FT Risk Factor Guidelines.
- The removal of Chapters 3 and 4 of the current Implementing Procedures – Part II that make reference to specific AML/CFT measures to be undertaken by VFA Issuers and VFA Agents respectively.
- The updating of terminology to align it with the terminology used under the MiCA Regulation, the amendments to the 4th AML Directive and the recast of the Transfer of Funds Regulation.
- A reference to the measures outlined in the amendments to the 4th AML Directive with respect to (i) cross-border correspondent relationships involving crypto-asset service providers; and (ii) transactions to or from self-hosted addresses.
- The inclusion of specific guidance on Multi-Party Computational Wallets.
- A reference to the requirements under the recast of the Transfer of Funds Regulation, as further explained in the EBA Travel Rule Guidelines published on 4 July 2024, both of which have become applicable as of 30th December 2024.
- The updating of Annex 1 to include new trends and case studies.
CASPs are to note that the amendments to the PMLFTR and the revised Implementing Procedures Part II are applicable as of 30th of December 2024.
The Legal Notice can be accessed here, while the updated Implementing Procedures Part II can be accessed on the FIAU’s website by clicking here.
For further information or queries, subject persons and stakeholders may contact the FIAU at [email protected].