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New anti-money laundering rules for crypto exchanges in Norway
Oct 09, 2018
Norway Financial Supervision Authority (FSA) recently announced new requirements for virtual currency exchange providers and businesses that create, store and maintain cryptographic keys.
New money laundering rules shall come into force as of October 15, 2018, and will focus on reporting companies established in Norway, including branches of foreign companies. Also, the new requirements will impact service providers that at this time operate without registration.
The FSA has clarified that providers will have to comply with the Money Laundering Act and shall be dully registered. A “transitional period” has been set for registering with the FSA – this period will continue till January 15, 2019.
The above-mentioned obligations under the new Money Laundering Act apply to crypto storage services and providers offering cryptocurrencies exchange services.
The information needed for registration contains, among others things, certain data about the business (company name, registration number, address, type of services offered to the clients), along with information about the company’s manager. In regard to compliance with the new AML rules - the customers will be obliged to provide information about the purpose of a transaction and/or the origin of funds. Service providers will have to report suspicious transactions to the FSA.
It is worth noting that there are identical rules for digital currency exchange platforms in Australia. These businesses are required to comply with a range of AML/CTF requirements, including:
• Implementing and maintaining an AML/CTF program to identify and manage money laundering and terrorism financing risks;
• Identification and verification of the customers;
• Reporting to Australian Transaction Reports and Analysis Centre regarding suspicious transactions involving physical currency of $10,000 or more;
• Storing the above-mentioned records for seven years.
If you have some doubts concerning the new regulations and their effect on your business, it might be the right time to seek a professional advice. The earlier that professional help is sought the more successful the result may be.