Commencing from 27th February 2018, the new Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) policy guidelines for cryptocurrencies came into effect. The policy’s objective is to “ensure that effective measures are in place against money laundering and terrorism financing risks associated with the use of digital currencies and to increase the transparency of digital currency activities in Malaysia.”
New Requirements for Malaysian Cryptocurrency Exchanges:
- Due diligence on customers and ID documentation: collecting the full name, address, IC, and date of birth of all customers, nationality, purpose of transaction. When the money laundering or terrorism financing risks are assessed as “high risk”, enhanced customer due diligence is required (ie: inquiring on the source of wealth or source of funds, obtaining approval from the Senior Management). *Note that the due diligence obligation is an ongoing obligation.
- Risk Assessment, Control and Mitigation: ongoing monitoring of customers transactions, sanction screening, suspicious transaction reporting and record keeping, subject to obligations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
- Declaration to Bank: Submit data and statistics to the Bank of Negara for the purpose of managing money laundering and terrorism financing risks.
Applicability:
- Any persons who carry on activities providing either:
- exchanging digital currency for money;
- exchanging money for digital currency; or
- exchanging one digital currency for another digital currency
whether in the course of carrying on a digital currency exchange business or otherwise
The complete report of the Policy Guidelines can be found here.
