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Finanstilsynet publishes new virtual currency rules

New rules for virtual currency and fiat currency exchange providers as well as virtual wallet providers.

Pr. January 10, 2020, everyone must be registered with the Danish Financial Supervisory Authority in accordance with the Money Laundering Act.

You can already submit your application to the Danish Financial Supervisory Authority. 

You can read more about this on the Danish FSA’s website, where you also find a review form:

https://www.finanstilsynet.dk/Ansoeg-og-Indberet/Indberetning-for-finansielle-virksomheder/Andre/Anmeldelsesskema-hvidvask

In the section entitled “The purpose of the company”, write that you exchange virtual currencies with fiat currencies or provide virtual wallets. 

Providers of exchanges between virtual currencies and fiat currencies as well as providers of virtual wallets are not mentioned directly in the table yet. This is because these companies are only covered by the Money Laundering Act on January 10, 2020.

This also means that you will not receive your registration until January 10, 2020. However, the Danish FSA will begin processing your review by January 10.

You will not be able to do business with the exchange of virtual currencies and fiat currencies and the provision of virtual wallets from January 10, 2020, if you have not registered with the Danish Financial Supervisory Authority.

Once you have registered, you will be subject to the requirements of the Money Laundering Act. This means, among other things, that you must 

  • make a risk assessment in relation to money laundering and terrorist financing for your business

  • have policies, business procedures and controls to prevent money laundering and terrorist financing

  • conduct customer awareness procedures in relation to all your customers, including any sharpened knowledge management procedures

  • continuously monitor your business relationships

  • conduct investigations of all complex and unusually large transactions, as well as all transaction patterns and activities that do not have a clear economic or demonstrable legal purpose, to determine whether there is reasonable cause to suspect that they are or have been linked to money laundering or terrorist financing 

  • notify the Money Laundering Secretariat of the State Prosecutor for Special Economic and International Crime (SEIC) if you are aware of, suspect or have reason to suspect that a transaction, funds or activity has or has been linked to money laundering or terrorist financing.

You can read much more in the Money Laundering Act and in the Danish FSA’s guide to the Money Laundering Act, which you can find here:

https://www.retsinformation.dk/Forms/R0710.aspx?id=209981

https://www.retsinformation.dk/Forms/R0710.aspx?id=203495

Link:

Finanstilsynet notice

Categories: Anti-Money Laundering Finanstilsynet Updates Virtual Currencies

eric9to5

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