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Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001)

Directives

Directive for Implementation of the Travel Rule relating to Crypto Asset Transfers in accordance with the Financial Action Task Force Recommendations

4. Obligations of ordering Crypto Asset Service Providers

 

4.1 An accountable institution that is an ordering crypto asset service provider must comply with the provisions of paragraphs 4.2 to 4.9 below.

 

4.2 An ordering crypto asset service provider must transmit to the recipient crypto asset service provider the following information concerning the originator of a qualifying transfer:
4.2.1 if the originator is a natural person, the originator’s:
4.2.1.1 full name; and
4.2.1.2 identity number, if the originator is a South African citizen or resident; or
4.2.1.3 passport number or foreign national identity number, and date of birth, if the originator is not a South African citizen or resident; and
4.2.1.4 residential address, if such an address is readily available; or
4.2.1.5 country of birth, if the residential address is not readily available; or
4.2.2 if the originator is a legal person, the originator’s:
4.2.2.1 registered name;
4.2.2.2 registration number under which it is incorporated; and
4.2.2.3 registered address;
4.2.3 the originator’s distributed ledger address associated with the transfer, if the transfer is registered on a network using distributed ledger or similar technology, and
4.2.4 the originator’s crypto asset account number with the ordering crypto asset service provider, if such an account is used to process the transaction, or a unique transaction reference number, if such an account number is not available.

 

4.3 An originator of a crypto asset transfer is the client of the ordering crypto asset service provider, as contemplated in the FIC Act, for the purposes of the execution of the transfer. The information relating to the originator that is transmitted to the recipient crypto asset service provider in accordance with paragraph 4.2 above, must be subjected to customer due diligence in accordance with Part 1 of Chapter 3 of the FIC Act and the Risk Management and Compliance Programme that the ordering crypto asset service provider is required to develop, document, maintain and implement in accordance with section 42 of the FIC Act.

 

4.4 An ordering crypto asset service provider must transmit to the recipient crypto asset service provider the following information concerning the beneficiary:
4.4.1 the full name of the beneficiary;
4.4.2 the beneficiary’s distributed ledger address associated with the transfer, in cases, if the transfer is registered on a network using distributed ledger or similar technology, and
4.4.3 the beneficiary’s crypto asset account number with the recipient crypto asset service provider, if such an account is used to process the transaction and this information is readily available to the ordering crypto asset service provider.

 

4.5 In respect of a transfer that is a single transaction of less than R5 000, the ordering crypto asset service provider must transmit to the recipient crypto asset service provider the following information, at a minimum:
4.5.1 the full name of the originator referred to in paragraphs 4.2.1.1 or 4.2.2.1 above, as the case may be;
4.5.2 the originator’s distributed ledger address associated with the transfer, if the transfer is registered on a network using distributed ledger or similar technology; and
4.5.3 the originator’s crypto asset account number with the ordering crypto asset service provider, if such an account is used to process the transaction, or a unique transaction reference number, if such an account is not available;
4.5.4 the full name of the beneficiary;
4.5.5 the beneficiary’s distributed ledger address associated with the transfer, in cases, if the transfer is registered on a network using distributed ledger or similar technology, and
4.5.6 the beneficiary’s crypto asset account number with the recipient crypto asset service provider, if such an account is used to process the transaction and this information is readily available to the ordering crypto asset service provider.

 

4.6 An ordering crypto asset service provider need not verify the information referred to in paragraph 4.5 in respect of a transfer that is a single transaction valued at less than R5 000 for accuracy, unless there is a suspicion of money laundering or terrorist financing, in which case, the ordering crypto asset service provider must verify the information pertaining to the originator.

 

4.7 When an ordering crypto asset service provider will be transmitting the information referred to in paragraphs 4.2, 4.4 and 4.5 above to another crypto asset service provider, the ordering crypto asset service provider must, before it transfers the information in question—
4.7.1 identify the counterpart crypto asset service provider to which it will transmit the information in question;
4.7.2 conduct due diligence on that counterpart crypto asset service provider—
4.7.2.1 to determine whether the counterpart can reasonably be expected to protect the confidentiality of information transmitted to it; and
4.7.2.2 to avoid dealing with an illicit actor or an entity that is identified pursuant to a Resolution of the United Nations Security Council and that is announced in a notice referred to in section 26A (3) of the FIC Act,

on the understanding that an ordering crypto asset service provider does not have to undertake the due diligence referred to in subparagraphs 4.7.2.1 and 4.7.2.2 above for each transfer of a crypto asset when dealing with a counterpart crypto asset service provider for which it has previously conducted this due diligence,

on the understanding further that an ordering crypto asset service provider must conduct the due diligence referred to in subparagraphs 4.7.2.1 and 4.7.2.2 above whenever there is a suspicion of money laundering, terrorist financing or proliferation financing against the counterpart crypto asset service provider, and

4.7.3 update the due diligence referred to in subparagraph 4.7.2 above which it has previously conducted for a counterpart crypto asset service provider periodically or when it identifies that money laundering, terrorist financing or proliferation financing risk emerges from the relationship with a counterpart crypto asset service provider.

 

4.8 An ordering crypto asset service provider may not execute a crypto asset transfer if it cannot comply with the requirements referred to in paragraphs 4.1 to 4.7 above.

 

4.9 An ordering crypto asset service provider must provide for the manner in which and the processes by which it will implement measures to comply with the requirements of paragraphs 4.1 to 4.8 above, in the Risk Management and Compliance Programme that the ordering crypto asset service provider is required to develop, document, maintain and implement in accordance with section 42 of the FIC Act.