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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

6. Obligations of recipient Crypto Asset Service Providers

 

6.1 An accountable institution that is a recipient crypto asset service provider must comply with the provisions of paragraphs 6.2 to 6.6 below.

 

6.2 A beneficiary of a crypto asset transfer is the client of the recipient crypto asset service provider, as contemplated in the FIC Act, for the purposes of the execution of the transfer. A recipient crypto asset service provider must, subject to paragraph 6.2, comply with the requirements relating to the verification of the beneficiary’s identity in terms of the FIC Act and the Risk Management and Compliance Programme that the recipient crypto asset service provider is required to develop, document, maintain and implement in accordance with section 42 of the Act.

 

6.3 In respect of an inward transfer that is a single transaction valued at less than R5 000 from an originator in a high-risk or other monitored jurisdiction, a recipient crypto asset service provider must verify the accuracy of the beneficiary information.

 

6.4 A recipient crypto asset service provider must take reasonable measures, which may include post-event monitoring or real-time monitoring where feasible, to identify cross-border crypto asset transfers that lack the required information referred to in paragraphs 4.2, 4.4 and 4.5 above.

 

6.5 A recipient crypto asset service provider must develop, document, maintain and implement effective risk-based policies and procedures for determining: 6.5.1 when to execute, suspend execution or return a cross-border crypto asset transfer that lacks any of the required information referred to in paragraphs 4.2, 4.4 and 4.5 above; and 6.5.2 the appropriate follow-up action that the recipient crypto asset service provider will take in each instance where it executes, suspends execution or returns a cross-border crypto asset transfer referred to in paragraph 6.5.1 above.

 

6.6 The measures referred to in paragraph 6.4 above and the policies and procedures referred to in paragraph 6.5 above, must be included in the Risk Management and Compliance Programme that the recipient crypto asset service provider is required to develop, document, maintain and implement in accordance with section 42 of the FIC Act.