The Guide to Anti-Money Laundering - Third Edition PDF Free Download
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The Guide
to Anti-Money
Laundering - Third
Edition
Navigating the regulatory landscape
for virtual assets from a compliance
perspective
The Guide to Anti-Money
Laundering - Third
Edition
The Guide to Anti-Money Laundering is one of the rpst ublciamtions to siybctmneobsck tmadce
loth siges of the yonek cmbngepin. aonbngpbyE Sgiteg lk Chmpon Lohen ve&in of Cbcci&mn
w Lpoy,ecc– the thipg egition ao&eps .colmc enfopaeyent mng aoyucimnae tpengs I ,ith
sueaira upmatiamc mg&iae fop aopuopmtions mng theip aobnsec thpob.hobtE -t mcso femtbpes m
ne, Cuotci.ht seation– ,hiah tmdes m geeu gi&e into the mntijyonek cmbngepin. pe.iyes of
dek Tbpisgiations mpobng the ,opcgE
Generated: May 29, 2025
Bhe infopymtion aontmineg in this peuopt is ingiamti&e onckE vm, Rbsiness (esempah is not pesuonsilce
fop mnk mations )op cmad thepeof2 tmden ms m pesbct of peckin. on op in mnk ,mk bsin. infopymtion aontmineg
in this peuopt mng in no e&ent shmcc le cimlce fop mnk gmym.es pesbctin. fpoy pecimnae on op bse of this
infopymtionE Loukpi.ht 0665 j 060x vm, Rbsiness (esempah
SAucope on GIR
RETURN TO SUMMARY
Navigating the
regulatory landscape for
virtual assets from a
compliance perspective
Stella Mendes, Jaco Sadie, Keenan Mahoney and Edith Wong
FTI Consulting
Summary
COMPLIANCE ACTIVITIES’ CHALLENGES AND SOLUTIONS
ONBOARDING AND KYC PROGRAMMES
TRANSACTION MONITORING
BENEFICIAL OWNERSHIP AND DIRECT OR INDIRECT EXPOSURE
HOW THE REGULATORY ENVIRONMENT IS EVOLVING ON CRYPTO AND VIRTUAL
ASSETS
STEPS FOR COMPLIANCE TEAMS TO TAKE
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
Loyucimnae ,ith mntijyonek cmbngepin. )MFv2 mng aobntepteppopist rnmnain. )LDB2 is
leaoyin. yope aoyuceA ms the .colmc rnmnaimc skstey I mng the pe.bcmtopk en&iponyent
thmt .o&epns it I aontinbes to e&oc&eE MFv aoyucimnae upofessionmcs rng theysec&es
foabsin. theip lmttces on t,o fponts I tpmgitionmc rnmnae )BpmgDi2 mng geaentpmciseg rnmnae
)PeDi2 I ,ith m gi&epse mng .po,in. set of &iptbmc mssets thmt amn le hecg– tpmnsfeppeg
op tpmgegE Loyucimnae is umptiabcmpck ahmccen.in. mt the intepseation of these t,o fponts–
in&oc&in. rmt abppenak mng apkutoabppenakE
Ms Gmbc Upe,mc of Loinlmse– the cmp.est apkuto eAahmn.e in the Jniteg Ctmtes–[1] ,pote in m
3bne 060: lco.‘ W’ith yope thmn 06 uepaent of Myepiamns o,nin. mng bsin. apkuto– ,e neeg
m pe.bcmtopk fpmye,opd thmt ,icc upoteat aonsbyeps mng enmlce the apitiamc bses of this ne,
teahnoco.k to aontinbe mng .po,E8[2]
Bhe nbylep of gistinat apkutoabppenaies mng gi.itmc mssets aontinbes to inapemseE Cinae the
066V cmbnah of litaoin– ,hiah peymins the lestjdno,n apkutoabppenak mng the cmp.est lk
ympdet amuitmcismtion– thobsmngs of gi.itmc abppenaies hm&e leen aoinegE[3] Wqiptbmc mssets8 is
m tepy thmt gesapiles m ,ige pmn.e of gi.itmc olTeats– inacbgin. apkutoabppenak– stmlceaoins
ue..eg to m pesep&e abppenak sbah ms the JC goccmp– nonjfbn.ilce todens mng seabpitk todens
thmt peseylce tpmgmlce stoads mng longsE M ne, fopy of &iptbmc msset thmt hms eyep.eg in
the umst fe, kemps is PeDi todens– ,hiah amn yiyia tpmgitionmc rnmnaimc skstey upogbats
sbah ms comn– uoptfocio tpmgin. mng sm&in.s maaobntsE
Dpoy mn MFv aoyucimnae stmnguoint– pe.bcmtopk peHbipeyents fop &iptbmc mssets mpe
essentimcck the smye fop rmt abppenak mng tmn.ilce mssetsE Bhe yost iyuoptmnt msueat
of mcc MFv aoyucimnae upo.pmyyes is thmt thek shobcg le gesi.neg to upe&ent apiyinmcs
fpoy bsin. the .colmc rnmnaimc skstey to cmbngep theip iccj.otten .mins– ,hethep those
mpe in rmt abppenak op apkutoabppenakE Dinmnaimc institbtions8 MFv aoyucimnae temys ybst
thepefope yeet the smye stmngmpgs pe.mpgcess of the tkue of mssetE -f m tpmgitionmc rnmnaimc
institbtion outs to sep&e its abstoyeps bsin. gi.itmc mssets– the institbtion amnnot muuck m
giffepent stmngmpg of aoyucimnae– e&en if the toocs bseg fop tpmnsmation yonitopin. mng othep
mati&ities giffep fop &iptbmc mssetsE Ms Mgpienne M Nmppis– sbuepintengent of the Ye, 1opd Ctmte
Peumptyent of Dinmnaimc Cep&iaes )Y1CPDC2– hms eAucmineg‘ WMcc &iptbmc abppenak aoyumnies
ciaenseg in Ye, 1opd Ctmte mpe sblTeat to the smye mntijyonek cmbngepin.– aonsbyep
upoteation– mng aklepseabpitk pe.bcmtions ms tpmgitionmc rnmnaimc sep&iaes aoyumniesE8[4]
-ntepnmtionmcck– pe.bcmtopk Tbpisgiations mpe iyuceyentin. op aonsigepin. pbces fop
apkutoabppenak mng othep &iptbmc mssetsE Dop eAmyuce– mcthob.h apkutoabppenak hms leen
fbcck ce.mciseg in :K aobntpies mnmckseg lk the Mtcmntia Lobnaic I inacbgin. the Jniteg Ctmtes–
Lmnmgm– the Jniteg /in.goy– Mbstpmcim– Uepymnk– 3mumn mng Cin.muope I onck 0x abppentck
hm&e MFv;LDB pe.bcmtions thmt muuck to apkutoabppenakE Ms ,ith mnk eyep.in. teahnoco.k–
the umae of pe.bcmtion hms not deut bu ,ith the umae of mgoution– mng the gisumpmte pbces
in &mpiobs Tbpisgiations mgg to the ahmccen.e ,ith aoyucimnae fop institbtions ,ith .colmc
ouepmtionsE[5]
-n the 56 aobntpies the Mtcmntia Lobnaic stbgieg– entities pe.bcmteg fop apkutoabppenak mng
&iptbmc mssets inacbge apkuto eAahmn.es– apkuto issbeps– tpmgitionmc rnmnaimc institbtions–
apkutomsset sep&iae upo&igeps mng apkutoabppenak yinepsE Bhe pe.bcmtopk stmtbs the Lobnaic
mssi.neg to emah of these Tbpisgiations mpe )K2 ce.mc– yemnin. mcc mati&ities mpe uepyittegO )02
umptimc lmn– op soye mati&ities mpe not uepyittegO mng ):2 .enepmc lmn– si.nifkin. thmt mcc apkuto
mng &iptbmc msset mati&ities mpe not uepyittegE[6]
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
CiAteen of the U06 aobntpies– inacbgin. se&epmc fpoy the Sbpouemn Jnion– hm&e ce.mciseg
apkuto mng &iptbmc mssets– peupesentin. x6 uep aent of .colmc .poss goyestia upogbatE[7]
Maaopgin. to the Mtcmntia Lobnaic– mcc yeyleps of the U06 mpe aonsigepin. apkuto pe.bcmtionsE
Mn eyep.in. mpem of &iptbmc mssets is stmlceaoins– ,hiah mpe bsbmcck lmadeg lk m rmt
abppenak )eAaeut mc.opithyia stmlceaoins thmt mpe bnlmadeg lk rmt abppenak2E (e.bcmtion of
stmlceaoins is bngep aonsigepmtion in the Sbpouemn Jnion– the Jniteg /in.goy– the Jniteg
Ctmtes mng BhmicmngE Myon. U06 aobntpies– FeAiao hms m umptimc lmn on apkuto mng &iptbmc
mssets mng abppentck goes not uepyit rnmnaimc institbtions to issbe stmlceaoinsE[8]
-n 4atolep 060K– the Dinmnaimc Mation Bmsd Dopae )DMBD2 bugmteg its .bigmnae fop m pisdjlmseg
muupomah to &iptbmc mssets mng &iptbmc msset sep&iae upo&igeps )qMCGs2E Bmp.eteg bugmtes to
thmt .bigmnae focco,eg in 3bne 0600– 3bne 060: mng 3bck 060$E[9] Bhe DMBD noteg thmt its
peaoyyengmtions muuck to &iptbmc mssets mng qMCGs in the smye ,mk ms thek go to tpmgitionmc
rnmnaimc institbtionsE Bhe DMBD is not mtteyutin. to pe.bcmte eithep the bseps of &iptbmc mssets
op the teahnoco.ies on ,hiah &iptbmc mssets mpe tpmgeg op bseg to aongbat tpmges op tpmnsfepsO
pmthep– it is tpkin. to acmpifk gernitions of &iptbmc mssets mng qMCGs mng upo&ige .bigmnae on
the pisds mng toocs to mggpess yonek cmbngepin. mng teppopist rnmnain. pisds in ueepjtojueep
tpmnsmationsE[10]
Coye JC stmtes hm&e issbeg sueaira pe.bcmtions pecmtin. to gi.itmc mssetsE -n 3bne 06Kx– the
Y1CPDC issbeg m &iptbmc abppenak pe.bcmtion )Ritviaense2– mng vobisimnm8s &iptbmc abppenak
pe.bcmtopk saheye tood effeat on K 3mnbmpk 060:E Lmcifopnim issbeg the Pi.itmc Dinmnaimc
Mssets vm, in 4atolep 060:– ,hiah upo&iges m aoyupehensi&e pe.bcmtopk fpmye,opd
fop gi.itmc msset aoyumnies– inacbgin. ciaensin.– gisacosbpe– peuoptin. mng peaopgjdeeuin.
peHbipeyents– ms ,ecc ms the peHbipeyent fop ciaenseg rpys to estmlcish mn MFv upo.pmyyeE
’hmt is ahmn.in. stemgick mlobt &iptbmc mssets mpe theip tkues– bse lk ingi&igbmcs mng
aopuopmte entities– mng theip &mcbeE Mcthob.h this is m ahmccen.e fop aoyucimnae upofessionmcs
to stmk abppent on the gknmyia ympdetucmae fop &iptbmc mssets– mn e&en li..ep ahmccen.e ymk
le ,hmt is not ahmn.in.‘ pe.bcmtopk eAueatmtions fop MFv aoyucimnaeE
COMPLIANCE ACTIVITIES’ CHALLENGES AND SOLUTIONS
Mppmkeg m.minst aoyucimnae upofessionmcs8 effopts to aoylmt yonek cmbngepin. mng teppopist
rnmnain. mpe apiyinmc entities thmt hm&e upo&en theysec&es to le hi.hck mgmutmlceE Dpoy
po.be matops to op.mniseg mng stmtejsuonsopeg entepupises– the ouuonents mpe mgeut mt
eAucoitin. coouhoces mng mctepin. tmatias to ymintmin theip 9o,s of icciait fbngsE qiptbmc mssets
hm&e leaoye m uoubcmp yoge of tpmnsfeppin. mng stopin. &mcbe– in umpt leambse thepe is
m uepaeution thmt thek enmlce aobntepumpties to peymin mnonkyobs in tpmnsmationsE Dop
ol&iobs pemsons– this lenerts those ,ith apiyinmc intent– lbt mnonkyitk in &iptbmc mssets hms
its ciyitsE -n fmat– &iptbmc mssets mpe aonsigepeg usebgojmnonkyobsE
-ngi&igbmcs fmyicimp ,ith the lmsia ,opdin.s of apkutoabppenak ymk mssbye thmt mcc &iptbmc
msset tpmnsmations mpe peaopgeg on gistpilbteg ceg.eps dno,n ms lcoadahminsE 3bst ms the
intepnet enaoyumsses loth ublcia mng upi&mte acobg sep&eps– the apkuto ,opcg mcso hms
ublcia mng upi&mte lcoadahminsE Mcthob.h ymnk apkutoabppenak tpmnsmations mpe peaopgeg on
ublcia lcoadahmins– ymnk mpe not– esueaimcck those thmt tmde ucmae on aentpmciseg eAahmn.esE
W4ffjahmin8 tpmnsmations– mcthob.h cess seabpe– ne&epthecess amn upo&ige fmstep sep&iae mng
co,ep fees thmn those thmt oaabp Wonjahmin8– sbah ms litaoin8s ublcia lcoadahminE
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
4njahmin tpmnsmations mpe iyybtmlce mng tpmaemlce– ms gi.itmc ,mccets hm&e ublcia mggpesses
mng yo&eyents of fbngs mpe &ie,mlce on lcoadahminsE 4nae m apkuto tpmnsmation is &epireg
on m lcoadahmin– m peaopg of it is stopeg on mcc ceg.eps on thmt ahminE Bhis fmat is .oog
ne,s fop MFv;LDB aoyucimnae– ms it enmlces mnmcksis mng mttpilbtion to ,mccet hocgeps bsin.
souhistiamteg toocsE Bhe go,nsige– mng ,hk &iptbmc mssets mpe usebgojmnonkyobs– is thmt
emah umptk in m tpmnsmation petmins m seapet dekE Bhe ublcia mggpess of m gi.itmc ,mccet peymins
&isilce lbt not the nmye of the bsep mssoaimteg ,ith thmt ,mccetE M si.niramnt ahmccen.e eAists
fop aoyucimnae upofessionmcs in gisaepnin. the nmyes to ,hiah gi.itmc ,mccets mpe mttpilbtegE
Doptbnmteck– aoyucimnae temys amn encist mssistmnae in thmt effopt fpoy teahnoco.kjenmlceg
eAuept sep&iaesE
Bhe samce of apiye in&oc&in. gi.itmc ,mccets mng yo&eyent of &iptbmc mssets– pecmti&e to mcc
apkutoabppenak &ocbye– is yinbsabce‘ in 060:– the myobnt of apkuto mati&itk mssoaimteg ,ith
icciait mati&ities ,ms 6E:$ uep aent– bu fpoy 6E0$ uep aent in 0600– maaopgin. to lcoadahmin
gmtm mnmcksis aoyumnk LhminmcksisE[11] Bhe &mcbe of apiye in apkutoabppenak– ho,e&ep– is
Hbite cmp.eE -n its 060$ Lpkuto Lpiye (euopt– Lhminmcksis peuopts thmt apkutoabppenak &mcbes
peaei&eg lk icciait mggpesses ,epe JC[0$E0 liccion in 060:– go,n fpoy the mccjtiye hi.h of
JC[:]E5 liccion in 0600E Bhe thpee upegoyinmnt sobpaes of icciait pe&enbes in 0600 ,epe
smnationeg entities– samys mng stocen fbngsE Lhminmcksis notes thmt these r.bpes go not
inacbge nonjapkuto apiyes– sbah ms aon&entionmc gpb. tpm—adin.– thmt bse apkutoabppenak ms
umkyentE[12]
ONBOARDING AND KYC PROGRAMMES
Bhe usebgojmnonkyobs nmtbpe of &iptbmc mssets is m hbpgce thmt aoyucimnae temys ybst
acemp to fbcrc theip yission to upe&ent op gispbut apiyinmc bse of the rnmnaimc sksteyE ’ith the
&mcbe of icciait mati&itk pisin. in apkutoabppenak– the stmdes mpe .ettin. hi.hepE
Longbatin. Wdno, kobp abstoyep8 )/1L2 mng abstoyep gbe gici.enae )LPP2 mati&ities in mn
oncine en&iponyent uoses m giffepent ding of ahmccen.e fpoy ho, onlompgin. hms leen gone
tpmgitionmcckO fop eAmyuce– ymnk yope dings of abstoyeps mpe aoyin. to rnmnaimc institbtions
thpob.h oncine ahmnnecs– pmthep thmn fmae to fmaeE Bhe eyep.enae mng upocifepmtion of
rnmnaimc teahnoco.k aoyumnies )rnteahs2 hm&e maaecepmteg rnmnaimc institbtions8 mgoution
of gi.itmc onlompgin.E Dinteahs hm&e ubsheg lmnds to eAumng theip onlompgin. fpoy ymnbmc–
umuepjlmseg upoaesses mng hbymn igentiramtion &epiramtion to fbcck gi.itmc mng mbtoymteg
&epiramtion bsin. lioyetpias mng– &epk often– thipgjumptk gmtmlmsesE
4nlompgin. mng /1L fop abstoyeps ,ith &iptbmc mssets peHbipe m siyicmp gi.itmc muupomah
,hice ymnm.in. MFv pisdsE Bhe DMBD .bigmnae notes thmt &iptbmc mssets‘
amn enmlce nonjfmaejtojfmae lbsiness pecmtionshius E E E Dbpthep– ?&iptbmc mssets7 amn le bseg to
Hbiadck yo&e fbngs .colmcck E E E mng to fmaicitmte m pmn.e of rnmnaimc mati&ities€fpoy yonek
op &mcbe tpmnsfep sep&iaes to seabpities– aoyyogities op gepi&mti&esjpecmteg mati&itk– myon.
othepsE Bhese fmatops in ?&iptbmc msset7 rnmnaimc mati&ities op ouepmtions ymk ingiamte hi.hep
Fv;BD ?yonek cmbngepin.;teppopisy rnmnain.7 pisdsE?K:7
M apitiamc aoyuonent of onlompgin. mng /1L is ,mccet sapeenin.E ’hen aongbateg gbpin.
onlompgin. mng fop on.oin. /1L– ,mccet sapeenin. mng gbe gici.enae hecu to igentifk lmg
matops lk peao.nisin. pisd eAuosbpe mng– in soye instmnaes– mssoaimtin. ,mccets ,ith m
dno,n entitk op ingi&igbmcE Bpmnsmations obtsige the rnmnaimc institbtion8s pisd thpeshocg amn
le lcoadeg– mng fpmbg amn le aoylmteg lk uinuointin. m ,mccet8s sobpae mng gestinmtion
of fbngsE -n tbpn– polbst ,mccet sapeenin. upo&iges bseps ,ith aonrgenae in eAeabtin.
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
tpbst,opthk tpmnsmations mng ymdin. cinds ,ith othep apkuto ,mccets on the net,opd– ms ,ecc
ms hecuin. to geteat ,hethep m sueaira apkuto eAahmn.e– smnationeg entitk op gmpdnet ympdet
is in aontpoc of m ,mccetE
Dop these pemsons– aoyucimnae temys mt BpmgDi institbtions ymk rng it bsefbc to eybcmte
the aoyucimnae steus thmt rnteahs neeg to uepfopy in the oncine en&iponyent in ,hiah
thek ouepmteE Bhese inacbge onlompgin.– pisd pmtin.– tpmnsmation pe&ie,– igentiramtion of
aobntepumpties mng uepiogia pe&ie,sE
4nlompgin. abstoyeps to ouen maaobnts peHbipes ampefbc mng aonsistent upoaesses thmt ymk
in&oc&e seedin. mggitionmc infopymtion to estmlcish mng &epifk m abstoyep8s igentitk– inacbgin.
oltminin. goabyentmtion &epifkin. aoyuceA o,nepshiu stpbatbpes mng the igentities of mnk
leneraimc o,nepsE /1L mng LPP mpe yepeck the rpst steus in the MFv aoyucimnae TobpnekE
M pisdjlmseg aoyucimnae upo.pmyye enmlces institbtions to mccoamte pesobpaes to yope
effeati&eck mci.n ,ith theip MFv pisdsE
TRANSACTION MONITORING
Bpmnsmation yonitopin. is mnothep dek aoyuonent in aoyucimnae upo.pmyyes thmt cets
rnmnaimc institbtions suot tpoblce mng tmde mationE Mn effeati&e tpmnsmation yonitopin.
upo.pmyye estmlcishes m feeglmad coou let,een mn institbtion8s /1L mng abstoyep pisd
pmtin. mati&itiesE (isdjlmseg aoyucimnae peHbipes yonitopin. mng ymintminin. mn bujtojgmte
pisd pmtin.– ms abstoyeps8 rnmnaimc lehm&iobps amn– mng go– ahmn.eE
Loyucimnae temys shobcg aontinbobsck mnmckse abstoyeps8 tpmnsmations in&oc&in. sbah
mssets in the aonteAt of apkutoabppenak mng othep &iptbmc mssetsO fop eAmyuce– m abstoyep
ymk aon&ept rmt abppenak into apkutoabppenak mng &iae &epsmE Ciyicmpck– institbtions shobcg
yonitop the obtlobng mng inlobng yo&eyent of apkutomssets peaopgeg onjahmin mng the
yo&eyents of apkutomssets offjahmin– umkin. umptiabcmp mttention to bnbsbmc tpmnsmation
umttepns op tpmns mations in&oc&in. hi.hjpisd abstoyeps op coamtionsE
M aoyuonent of tpmnsmation yonitopin. is Wdno, kobp tpmnsmation8 )/1B2– ,hiah is m upoaess
thmt rnmnaimc institbtions bse to yonitop– tpmad mng e&mcbmte rnmnaimc tpmnsmations to geteat
mng upe&ent fpmbgbcent op apiyinmc mati&itkE Ms apkutoabppenak bse .po,s– institbtions ybst
bngepstmng ho, apkuto tpmnsmations amppk lits of infopymtion ,ith they– so aoyucimnae
temys amn in&esti.mte these tpmnsmations fop e&igenae of rnmnaimc apiyesE Mggitionmcck– /1B
mcco,s rnmnaimc institbtions to aoyuck ,ith MFv pe.bcmtions mng upoteat theip peubtmtions
mng abstoyeps fpoy rnmnaimc apiyeE ’ithobt /1B– rnmnaimc institbtions ,obcg le mt pisd of
bndno,in.ck fmaicitmtin. icce.mc mati&itk– ,hiah aobcg cemg to ce.mc uenmcties– rnmnaimc cosses
mng peubtmtionmc gmym.eE
/1B acmpires ,hethep m uepson op lbsiness en.m.es in icce.mc rnmnaimc mati&itkE -t is m
apitiamc tooc fop rnmnaimc institbtions to ensbpe aoyucimnae ,ith pe.bcmtions– upe&ent rnmnaimc
apiye– upoteat theip abstoyeps mng peubtmtion– mng mnmckse rnmnaimc lehm&iobp fop oggities
in ingi&igbmc tpmnsmations mng umttepns maposs ybctiuce yonek yo&esE Bo.ethep ,ith /1L–
rnmnaimc institbtions amn sbuuceyent m ,eccjestmlcisheg /1L;LPP upoaess ,ith mggitionmc
steus ,hen thek offep m &iptbmc msset upogbat op sep&iaeE
BpmgDi institbtions tkuiamcck .et into apkuto lk offepin. it to eAistin. abstoyepsE ’hen
estmlcishin. the eAueateg mati&itk of m abstoyep– in mggition to the bsbmc Hbestions mlobt
amsh mng ,ipe tpmnsfeps– the institbtion ymk msd ,hethep the abstoyep ucmns to en.m.e
in apkutoabppenak tpmnsmationsE Bhmt aobcg cemg to focco,jbu Hbestions‘ ,hmt dings of
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
aoins;todensz ’hmt mpe the abstoyep8s abppent ,mccet mggpessesz Dpoy ,hmt ,mccets ,icc the
abstoyep seng fbngs to the institbtionz ’icc the abstoyep en.m.e in aentpmciseg rnmnae– PeDi
op ueepjtojueep– tpmnsmationsz
Bhe /1L upoaess amn mcco, aoyucimnae temys to getepyine ,hethep the eAueateg mati&itk
of the abstoyep is ce.mc in theip Tbpisgiation– mng then mcco, the institbtion to sapeen eAistin.
,mccets fop gipeat mng ingipeat eAuosbpe to bnbsbmc mati&itkE -nstitbtions amn then gesi.n
tpmnsmation yonitopin. mcepts ,hen abstoyeps seng in fbngs thpob.h bngisacoseg ,mccetsE
Bhe pesbcts of tpmnsmation yonitopin. hecu to apemte aonr.bpmlce ,mccet pisd saopin. so thmt
bseps amn lettep bngepstmng theip tpmnsmation aobntepumptiesE Bhmt is ,hk ,mccet sapeenin.–
/1B mng tpmnsmation yonitopin. peymin inte.pmc umpts of mn mgeHbmte MFv upo.pmyyeE
BENEFICIAL OWNERSHIP AND DIRECT OR INDIRECT EXPOSURE
Bo yeet MFv aoyucimnae peHbipeyents– institbtions ybst .mthep infopymtion mlobt
aobntepumpties to getepyine ,hethep the yo&eyent of fbngs is sbsuiaiobsE S&en thob.h
apkuto ,mccet mggpesses mng the yo&eyent of fbngs mpe &isilce in &iptbmc msset tpmnsmations
on ublcia lcoadahmins– mttpilbtion of these mggpesses often peHbipes mggitionmc mnmcktiamc
toocsE Dop eAmyuce– &iptbmc msset yonitopin. aoyumnies hm&e mttpilbteg ,mccet mggpesses to
apiyinmc mng hi.hjpisd entities– inacbgin. those thmt mpe sblTeat to smnationsE
-nstitbtions hmngcin. &iptbmc mssets amn hm&e loth gipeat eAuosbpe to the aobntepumpties in m
lcoadahmin tpmnsmation mng ingipeat eAuosbpeO in othep ,opgs– institbtions fmae eAuosbpe to
othep mggpesses ,ith ,hiah the aobntepumptk hms tpmnsmategE -ngipeat eAuosbpe amn oaabp in
loth the sengin. mng peaeiut of fbngs– mng ,hepe thek opi.inmte ms ,ecc ms theip gestinmtionE
Msset tpmain. tmdes on e&en yope iyuoptmnae ,hen those mssets mpe &iptbmc– lbt the .oog
ne,s fop aoyucimnae temys is thmt tpmain. is emsiep thmnds to the tpmnsumpenak of the
gistpilbteg ceg.ep skstey in lcoadahminsE
-n aontpmst– ingipeat eAuosbpe goes not eAist fop institbtions hmngcin. amshE -t is not uossilce
to tpmad rmt abppenak in m aentpmciseg ucmae to getepyine ,hethep op ,hepe it hms leen in the
hmngs of apiyinmcsE SAaeut ,hen apkutoabppenak enteps aentpmciseg apkuto eAahmn.es– yiAeps
op tbylceps– ingipeat eAuosbpe in apkuto amn le yemsbpeg to m ge.peeE 3bst ms apiyinmcs bsin.
tpmgitionmc rnmnaimc institbtions mtteyut to olfbsamte mng olsabpe the opi.in of theip icciait
fbngs lk shiftin. they thpob.h m sepies of entities mng othep rnmnaimc institbtions– m siyicmp
teahniHbe eAists in apkutoabppenakE M apkutoabppenak hocgep ymk uossess ybctiuce ,mccets to
aocceat mng tpmnsfep fbngs to intepyegimpk nonjsep&iae mggpesses on theip ,mk to m sep&iae
mggpess– sbah ms m apkuto eAahmn.e– thpob.h ,hmt mpe dno,n ms Whous8E
Bpmnsmation yonitopin. fop &iptbmc mssets shobcg thepefope tmde into maaobnt gipeat mng
ingipeat eAuosbpe mng apemte mcepts to upoyut fbpthep in&esti.mtionE SAmyuces of mcepts thmt
aobcg bnao&ep sbsuiaiobs mati&itk inacbge those fop ybctiuce hous– ms ,ecc ms ex post facto
peaeiut of &iptbmc mssetsE Lpkutoabppenak eAahmn.es amnnot upe&ent the in9o, of &iptbmc
mssets– lbt thek amn sapeen tpmnsmations mftep the fmat to getepyine ,hethep the tmp.et
gestinmtion is mssoaimteg ,ith icciait mggpessesE Mci.nin. tpmnsmation yonitopin. mng mcepts to
.bigmnae on tpengs mng apiyinmc tkuoco.ies upo&igeg lk the Dinmnaimc Lpiyes Snfopaeyent
Yet,opd is mcso m upbgent steuE
Ms the DMBD notes‘
?&iptbmc msset7 upogbats op sep&iaes thmt fmaicitmte usebgonkyobs op mnonkyitkjenhmnaeg
tpmnsmations mcso uose hi.hep Fv;BD pisds– umptiabcmpck if thek inhilit m qMCG8s mlicitk to
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
igentifk the leneraimpkE vmad of abstoyep mng aobntepumptk igentiramtion is esueaimcck
aonaepnin. in the aonteAt of ?&iptbmc mssets7– ,hiah mpe apossjlopgep in nmtbpeE -f abstoyep
igentiramtion mng &epiramtion yemsbpes go not mgeHbmteck mggpess the pisds mssoaimteg ,ith
nonjfmaejtojfmae op oumHbe tpmnsmations– the Fv;BD pisds inapemse– ms goes the gi—abctk in
tpmain. the mssoaimteg fbngs mng igentifkin. tpmnsmation aobntepumptiesE[14]
HOW THE REGULATORY ENVIRONMENT IS EVOLVING ON CRYPTO AND VIRTUAL
ASSETS
Bhe pe.bcmtopk en&iponyent on apkutoabppenak mng othep &iptbmc mssets is leaoyin. yope
aoyuceA– cide the olTeats of pe.bcmtion theysec&esE S&en thob.h rnmnaimc sep&iaes pe.bcmtops
hocg institbtions to the smye stmngmpgs– ,hethep thek hmngce gi.itmc op rmt abppenaies–
pe.bcmtops go peao.nise thmt the goymin of &iptbmc mssets is ge&ecouin. pmuigckE Ms m pesbct–
pe.bcmtions on gi.itmc abppenaies mng &iptbmc mssets mpe ybctijumptE Loyucimnae temys hm&e
to ,pestce ,ith peHbipeyents pecmtin. to apkutoabppenak itsecf– the Rmnd Ceapeak Mat )RCM2–
MFv mng aklepseabpitkE
Mggin. to the aoyuceAitk is the pemcitk thmt ybctiuce pe.bcmtopk mbthopities eAepaise Tbpisgiation
o&ep apkuto mng &iptbmc mssetsE ’ithin the Jniteg Ctmtes– se&epmc fegepmc m.enaies– ms ,ecc ms
stmte pe.bcmtopk mbthopities– issbe pbces pe.mpgin. &iptbmc mssetsO myon. those m.enaies mpe
the Ceabpities mng SAahmn.e Loyyission– the Loyyogitk Dbtbpes Bpmgin. Loyyission mng
the JC Peumptyent of the BpemsbpkE
Lhmn.in. JC upesigentimc mgyinistpmtions mgg fbpthep bnaeptmintkE Dop eAmyuce– on • Fmpah
060x– the 4—ae of the Loyutpoccep of the Lbppenak issbeg -ntepupetmti&e vettep KKV:[15]
mcco,in. lmnds to upo&ige abstogk sep&iaes fop gi.itmc mssets– pe&epsin. its uosition fpoy
-ntepupetmti&e vettep KK•][16] issbeg bngep the Rigen mgyinistpmtion in Yo&eylep 060KE Jngep
ne, cemgepshiu– the Ceabpities mng SAahmn.e Loyyission issbeg Ctmff Maaobntin. Rbccetin
K00–[17] pe&epsin. Ctmff Maaobntin. Rbccetin K0K issbeg in Fmpah 0600–[18] ,hiah peHbipeg &epk
aonsep&mti&e coss estiymtes on apkuto uositions mng m peHbipeyent to hocg aoppesuongin.
pisdjyiti.mtin. mssets– ,hiah effeati&eck upeacbgeg ymnk entities fpoy offepin. abstogk mng
othep sep&iaesE
4btsige the Jniteg Ctmtes– giffepin. pe.bcmtopk pe.iyes ymde it gi—abct fop aoyucimnae temys
to estmlcish mng ymintmin m .colmc muupomah to MFv on apkuto mng &iptbmc mssetsE
-n Mupic 060:– the Sbpouemn Gmpcimyent umsseg its Fmpdets in Lpkutomssets (e.bcmtion
)FiLM2– mng the ce.iscmtion ,ms si.neg into cm, in Fmk 060:E[19] FiLM– ,hiah tood effeat in
Peaeylep 060$– gipeats apkutomsset sep&iae upo&igeps to tmde steus to upoteat aonsbyeps
mng iyupo&e .o&epnmnae– mng eAumngs the entities thmt mpe sblTeat to Sbpouemn MFv pbcesE
M seumpmte– aoyumnion uieae of ce.iscmtion on MFv is ,opdin. its ,mk thpob.h the Sbpouemn
GmpcimyentE Bhis is intengeg to mci.n the SJ MFv muupomah ,ith DMBD stmngmpgs on tpmnsfeps
of fbngsE
(e.bcmtion of the tpmnsfep of fbngs– mcso dno,n ms the Bpm&ec (bce– hms con. leen m stmngmpg
in rmt abppenak mng is no, lein. muucieg to apkutoabppenak tpmnsmationsE Bhe Bpm&ec (bce
sets m thpeshocg mt ,hiah institbtions ybst igentifk the opi.inmtops mng leneraimpies of
tpmnsmationsE 3bpisgiations giffep on this– ,ith the Jniteg Ctmtes bsin. m JC[:–666 thpeshocg
fop apkutoabppenak tpmnsmationsE Bhe DMBD initimcck sb..esteg m thpeshocg of JC[K–666 op
K–666 fop apkutoabppenak tpmnsmations– lbt ne, SJ pbces iyuose m epojebpo thpeshocg–
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
yemnin. thmt mcc apkutoabppenak tpmnsmations– pe.mpgcess of sie– ybst igentifk the opi.inmtops
mng leneraimpiesE[20]
-n supin. 060:– yope Tbpisgiations mnnobnaeg ucmns to enfopae MFv pe.bcmtions fop
apkutoabppenak tpmnsmationsE 3mumn mnnobnaeg ucmns to enfopae stpiat MFv pbces intengeg
to lpin. the nmtion in cine ,ith .colmc apkutoabppenak pe.bcmtions– inacbgin. the Bpm&ec
(bceE 3mumn8s muuciamtion of this pbce iyuoses m JC[:–666 thpeshocg on apkutoabppenak
tpmnsmations mng amye into effeat on K 3bne 060:E[21] Ciyicmp mation ,ms tmden in Fmk
060: lk the Jniteg Mpml Syipmtes– ,hiah ingiamteg thmt it ,obcg peHbipe ciaenseg rnmnaimc
institbtions to &epifk the igentities of mcc abstoyeps– lmseg on DMBD stmngmpgs– inacbgin.
pecmtionshius ,ith qMCGs– sbah ms apkutoabppenak eAahmn.esE[22]
(e.bcmtopk mations lk othep Tbpisgiations on &iptbmc mssets mpe cideck ms yope rnmnaimc sep&iaes
pe.bcmtops aonsigep .colmc stmngmpgsE Mn DMBD peuopt sho,eg thmt •x uep aent of Tbpisgiations
mpe umptimcck op fbcck nonjaoyucimnt ,ith &iptbmc msset MFv stmngmpgsE Bhe peuopt aiteg m
.enepmc cmad of bngepstmngin. of apkutoabppenak ympdets– ms ,ecc ms aoyucimnae toocs thmt
mpe ciyiteg in saoue op not intepouepmlce to yeet DMBD stmngmpgsE[23]
Dop aoyucimnae upofessionmcs– thepe is loth m lenert mng m ahmccen.e in the upoybc.mtion
of pe.bcmtionsE Bhe yope nmtionmc mng othep pe.bcmtops thmt issbe peHbipeyents on
apkutoabppenak mng othep &iptbmc mssets– the yope ce.itiyiseg these tpmnsmations leaoyeE
Fope pe.bcmtion is thepefope cideck to upoyote fbpthep bse of gi.itmc mssets– yemnin. thmt
rnmnaimc institbtions ,icc see inapemsin. &ocbyes– mng the MFv aoyucimnae temy8s ,opdcomg
,icc pise aoyyensbpmteckE
STEPS FOR COMPLIANCE TEAMS TO TAKE
Bhe pomg mhemg in MFv aoyucimnae fop apkutoabppenak mng othep &iptbmc mssets ymk muuemp
gi—abct to nm&i.mte– lbt rnmnaimc institbtions amn ahmpt m aobpse to ymde the Tobpnek
emsiepE M fobngmtionmc steu is to mssess the eAistin. r&e uiccmps of the RCM;MFv aoyucimnae
upo.pmyyeE Bhese uiccmps ybst sbuuopt mn institbtion8s aoyucimnae effopts ,hen it aoyes
to rmt abppenak ms ,ecc ms apkutoabppenakE Cbaaessfbc aoyucimnae upo.pmyyes mpe lbict on
the focco,in.‘
Internal policies, procedures and controls‘ yonitopin. mng sapeenin. yethogoco.ies
shobcg le pe&ie,eg mng bugmteg ms pisd uporces ahmn.e fop m .i&en institbtionE MFv
aoyucimnae temys8 aontpocs I inacbgin. mc.opithys fop igentifkin. mng in&esti.mtin.
sbsuiaiobs mati&ities– rcin. sbsuiaiobs mati&itk peuopts mng aongbatin. fopensia
pe&ie,s I mpe the tpbe testE ’ithobt effeati&e aontpocs– institbtions amn &eep off into
aoyucimnae fmicbpesE
Designation of an AML oEcer‘ maaobntmlicitk is apitiamc in aoyucimnae– mng the
gesi.nmtion of mn MFv o—aep– ,ith the pi.ht lmcmnae of eAuepienae let,een
aoyucimnae mng &iptbmc mssets– is mn iyuoptmnt fobngmtionmc steuE
mCployee training‘ deeuin. bu ,ith ahmn.es in pe.bcmtions mng Tbpisgiationmc
giffepenaes is gi—abct enob.hE Mgg in ympdetucmae ahmn.es mng ne, fopys of &iptbmc
mssets mng thmt tmsd leaoyes &mstck yope aoyuciamtegE Lontinbin. eyucokee tpminin.
is peaoyyengeg fop mcc rnmnaimc institbtionsE
Independent testing‘ to le aonsistentck effeati&e– aoyucimnae mati&ities mng
upoaegbpes shobcg le upouepck gesi.neg– mnmckseg mng &mcigmtegE Mn ingeuengent
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
thipg umptk ,ho is dno,ceg.emlce mlobt MFv mng &iptbmc mssets amn le m &mcbmlce
umptnep in this effoptE
DD‘ /1L mng LPP mpe essentimc eceyents in MFv aoyucimnaeE Loyucimnae
upo.pmyyes ybst maaobnt fop the pisd fmatops thmt ueptmin to the sueaira institbtionE
(isd saopin. of eAistin. mng uposueati&e aobntepumpties is m apitiamc steu fop mnk msset
tkueE
Mnothep iyuoptmnt steu is to bse tpbsteg umptneps to mssist in gesi.nin.– &mcigmtin. op
uepfopyin. the apitiamc sep&iaes pecmtin. to MFv aoyucimnaeE Bhese inacbge /1L– LPP–
lcoadahmin mnmcktias– tpmnsmation yonitopin.– smnations sapeenin. mng pisd saopin.E
Dinmcck– sueaira mng pe.bcmp tpminin. fop aoyucimnae temys on apkutoabppenak mng othep
&iptbmc mssets is peaoyyengegE /eeuin. bu to gmte ,ith ne, msset tkues– ympdetucmae tpengs–
tkuoco.ies in the bse of apkutomssets fop yonek cmbngepin. mng aoppesuongin. pe.bcmtions
is &itmc fop effeati&e MFv aoyucimnaeE
ENDNOTES
[1] Cee ’elum.e– WBou Lpkutoabppenak Cuot SAahmn.es8– LoinFmpdetLmu )maaesseg 0 Fmk
060$2E
[2] Gmbc Upe,mc– W’e neeg acemp pbces fop apkuto to upoteat Myepiamn cemgepshiu mng aonsbyep8–
Loinlmse )x 3bne 060:2E
[3] vkce Pmck– WNo, Fmnk Lpkutoabppenaies Mpe Bhepez8– Bhe Fotcek Dooc )bugmteg 06 Yo&
060:2E
[4] Mgpienne M Nmppis– WPDC Cbuepintengent Mnnobnaes [:6 Ficcion Genmctk 4n (olinhoog
Lpkuto fop Ci
.niramnt MntijFonek vmbngepin.– Lklepseabpitk w Lonsbyep Gpoteation qi
ocmtions8– Ye, 1opd Ctmte Peumptyent of Dinmnaimc Cep&iaes )0 Mb. 06002E
[5] ’elum.e– WLpkutoabppenak (e.bcmtion Bpmadep8– Mtcmntia Lobnaic )bugmteg Ceut 060:2E
[6] -gE
[7] Bhose K5 aobntpies mpe Mbstpmcim– Rpmic– Lmnmgm– Penympd– Dpmnae– Uepymnk– Nbn.mpk– -tmck–
3mumn– the Yethepcmngs– Gocmng– (oymnim– Cumin– Cobth Mfpiam– the Jniteg /in.goy mng the
Jniteg CtmtesE
[8] WLpkutoabppenak (e.bcmtion Bpmadep8 )see footnote x2E
[9] Dop the cmtest bugmte– see .bigmnae– Wqiptbmc Mssets‘ Bmp.eteg Jugmte on -yuceyentmtion
of the DMBD Ctmngmpgs on
qMs mng qMCGs8– Dinmnaimc Mation Bmsd Dopae )DMBD2 )] 3bck 060$2E
[10] Ubigmnae– WJugmteg Ubigmnae fop m (isdjRmseg Muupomah to qiptbmc Mssets mng qiptbmc Ms
set Cep&iae Gpo&igeps8– DMBD )0V 4at 060K2E
[11] (euopt– WBhe 060: Lpkuto Lpiye (euopt8– Lhminmcksis )Del 060:2E
[12] -gE
[13] WJugmteg Ubigmnae fop m (isdjRmseg Muupomah to qiptbmc Mssets mng qiptbmc Msset Cep&iae
Gpo&igeps8 )see footnote K62– mt ?:$7E
Navigating the regulatory landscape for virtual assets from
a compliance perspective SAucope on GIR
RETURN TO SUMMARY
[14] -gE
[15] -ntepupeti&e vettep KKV:– W4LL vettep Mggpessin. Leptmin LpkutojMsset Mati&ities8– 4—ae of
the Loyutpoccep of the Lbppenak )4LL2 )• Fmp 060x2E
[16] -ntepupeti&e vettep KK•]– WLhief Lobnsec8s -ntepupetmtion Lcmpifkin.‘ )K2 Mbthopitk of m Rmnd
to Sn.m.
e in Leptmin Lpkutoabppenak Mati&itiesO mng )02 Mbthopitk of the 4LL to Lhm
ptep m Ymtionmc Bpbst Rmnd8– 4LL )KV Yo& 060K2E
[17] Ctmff Maaobntin. Rbccetin YoE K00– Ceabpities mng SAahmn.e Loyyission )CSL2 )pe&ie,eg
: Del 060x2E
[18] Ctmff Maaobntin. Rbccetin YoE K0K– CSL )pe&ie,eg 0$ Fmp 06002E
[19] (e.bcmtion )SJ2 YoE 060:;KKK$ of the Sbpouemn Gmpcimyent mng of the Lobnaic of :K Fmk
060: on ympdets in apkutojmssets– mng myengin. (e.bcmtions )SJ2 YoE K6]:;06K6 mng )SJ2
YoE K6]x;06K6 mng Pipeati&es YoE 06K:;:5;SJ mng )SJ2 YoE 06K];K]:•O lpiern.– WFmpdets
in apkutojmssets )FiLM28– Sbpouemn Gmpcimyent )060:2E
[20] WFiLM8s Lpkuto Bpm&ec (bce‘ SJ8s Ye, Lpkuto (e.bcmtions– Gmpt K8– Lhminmcksis )5 3bck 06002E
[21] Fmptin 1obn.– W3mumn8s apkuto MntijFonek vmbngepin. yemsbpes to stmpt in 3bne‘ (euopt8–
Lointece.pmuh )0$ Fmk 060:2O W3mumn Bpm&ec (bce Ctmpts K 3bne‘ Mn -njPeuth Ubige fop qMCGs8–
Ck.nm )K 3bne 060:2E
[22] Pm&ig Mttcee– WMFv pbces fop gi.itmc mssets to aoye into effeat in JMS8– Lointece.pmuh ):K
Fmk 060:2E
[23] Fepaeges /eccek Bbnstmcc– WDMBD (euopts vmadcbstep Ucolmc Mgoution of Lpkutoabppenak
MFv (eHbipeyents8– Bhe Ymtionmc vm, (e&ie, ):6 3bne 060:2E
Stella Mendes stella.mendes@fticonsulting.com
Jaco Sadie jaco.sadie@fticonsulting.com
Keenan Mahoney keenan.mahoney@fticonsulting.com
Edith Wong edith.wong@fticonsulting.com
200 Aldersgate, Aldersgate Street, London EC1A 4HD, United Kingdom
Tel: +44 20 3727 1000
https://www.fticonsulting.com/
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