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  • AML-2A.2 AML-2A.2 Transfer of Accepted Crypto-assets and Wire Transfer

    • Accepted Crypto-asset Transfer to be Considered as Cross Border Transfer

      • AML-2A.2.1

        Capital Market Licensees (including crypto-asset licensees) must consider all transfers of accepted crypto-assets as cross-border transfer rather than domestic transfer.

        Amended: January 2022
        Added: January 2020

    • Outward Transfers

      • AML-2A.2.2

        Capital Market Licensees must include all required originator information and required beneficiary information details with the accompanying transfer of accepted crypto-assets and/or wire transfer of funds they make on behalf of their customers.

        Amended: January 2022
        Added: January 2020

      • AML-2A.2.3

        For purposes of this Section, originator information refers to the information listed in Subparagraphs AML-2A.2.7 (a) to (c) and beneficiary information refers to the information listed in Subparagraphs AML-2A.2.7 (d) and (e).

        Added: January 2020

    • Inward Transfers

      • AML-2A.2.4

        Capital Market Licensees must:

        (a) Maintain records (in accordance with Chapter AML-6 of this Module) of all originators information received with an inward transfer; and
        (b) Carefully scrutinize inward transfers which do not contain originator information (i.e. full name, address and account number or a unique customer identification number). Capital Market Licensees must presume that such transfers are ‘suspicious transactions’ and pass them to the MLRO for review for determination as to possible filing of STR, unless (i) the ordering financial institution is able to promptly (i.e. within two business days) advise the licensee in writing of the originator information upon the licensee’s request (Refer to Paragraph AML-2A.2.5); or (ii) the ordering financial institution and the licensee are acting on their own behalf (as principal).
        Amended: January 2022
        Added: January 2020

      • AML-2A.2.5

        The period of 2 business days provided to ordering financial institution by the Capital Market Licensees under Paragraph AML-2A.2.4(b)(i) to furnish the originator information is only applicable while undertaking fund transfer (traditional wire transfer) and must not be used in case of transfer of accepted crypto-assets.

        Amended: January 2022
        Added: January 2020

      • AML-2A.2.6

        While undertaking accepted crypto-asset transfer, a Capital Market Licensees must ensure that the ordering financial institution transmits the originator and beneficiary information immediately (Refer to Paragraph AML-2A.2.9).

        Amended: January 2022
        Added: January 2020

    • Accepted Crypto-asset Transfer and Cross Border Wire Transfer

      • AML-2A.2.7

        Information accompanying all accepted crypto-asset transfer as well as wire transfer must always contain:

        (a) The name of the originator;
        (b) The originator account number (e.g. IBAN or crypto-asset wallet) where such an account is used to process the transaction;
        (c) The originator’s address, or national identity number, or customer identification number, or date and place of birth;
        (d) The name of the beneficiary; and
        (e) The beneficiary account number (e.g. IBAN or crypto-asset wallet) where such an account is used to process the transaction.
        Added: January 2020

      • AML-2A.2.8

        Where a Capital Market Licensees undertakes a transfer of accepted crypto-asset, it is not necessary for the information referred to in Paragraph AML-2A.2.7 to be attached directly to the accepted crypto-asset transfers itself. The information can be submitted either directly or indirectly.

        Amended: January 2022
        Added: January 2020

      • AML-2A.2.9

        A Capital Market Licensee while undertaking transfer of accepted crypto-asset must ensure that the required originator and beneficiary information is transmitted immediately and securely.

        Amended: January 2022
        Added: January 2020

      • AML-2A.2.10

        For the purposes of Paragraph AML-2A.2.9, “Securely” means that the provider of the information must protect it from unauthorized disclosure as well as ensure that the integrity and availability of the required information is maintained so as to facilitate recordkeeping and the use of such information by financial institution. The term “immediately” means that the provider of the information must submit the required information simultaneously or concurrently with the transfer itself of the accepted crypto-asset.

        Added: January 2020

      • AML-2A.2.11

        The CBB recognises that unlike traditional fiat currency wire transfer, not every accepted crypto-asset transfer involves (or is bookended by) two institutions (crypto-asset entities or financial institution). In instances in which an accepted crypto-asset transfer involves only one financial institution on either end of the transfer (e.g. when an ordering financial institution sends accepted crypto-assets on behalf of its customers, the originator, to a beneficiary that is not a customer of a beneficiary financial institution but rather an individual user who receives the accepted crypto-asset transfer using his/her own distributed ledger technology (DLT) software, such as an unhosted wallet), the financial institution must still ensure adherence to Paragraph AML-2A.2.7 for their customer. The CBB does not expect that financial institutions, when originating an accepted crypto-asset transfer, would submit the required information to individual users who are not financial institutions. However, financial institutions receiving an accepted crypto-asset transfer from an entity that is not a financial institution (e.g. from an individual accepted crypto-asset user using his/her own DLT software, such as an unhosted wallet), must obtain the required originator information from their customer.

        Added: January 2020

    • Domestic Wire Transfer

      • AML-2A.2.12

        Information accompanying domestic wire transfers must also include originator information as indicated for cross-border wire transfers, unless this information can be made available to the beneficiary financial institution and the CBB by other means. In this latter case, the ordering financial institution need only include the account number or a unique transaction reference number, provided that this number or identifier will permit the transaction to be traced back to the originator or the beneficiary.

        Added: January 2020

      • AML-2A.2.13

        For purposes of Paragraph AML-2A.2.12, the information should be made available by the ordering financial institution within three business days of receiving the request either from the beneficiary financial institution or from the CBB.

        Added: January 2020

      • AML-2A.2.14

        It is not necessary for the recipient institution to pass the originator information on to the beneficiary. The obligation is discharged simply by notifying the beneficiary financial institution of the originator information at the time the transfer is made.

        Added: January 2020

    • Responsibilities of Ordering, Intermediary and Beneficiary Financial Institutions

      • Ordering Financial Institution

        • AML-2A.2.15

          The ordering financial institution must ensure that wire transfers as well as accepted crypto-asset transfers contain required and accurate originator information, and required beneficiary information.

          Added: January 2020

        • AML-2A.2.16

          The ordering financial institution must maintain all originator and beneficiary information collected in accordance with Paragraph AML-6.1.1.

          Added: January 2020

        • AML-2A.2.17

          The ordering financial institution must not execute the wire transfer or accepted crypto-asset transfer if it does not comply with the requirements of Paragraphs AML-2A.2.15 and AML-2A.2.16.

          Added: January 2020

      • Intermediary Financial Institutions

        • AML-2A.2.18

          For cross-border wire transfers and accepted crypto-asset transfers, financial institutions processing an intermediary element of such chains of wire transfers and/or accepted crypto-asset transfers must ensure that all originator and beneficiary information that accompanies a wire transfer and accepted crypto-asset transfer is retained with it.

          Added: January 2020

        • AML-2A.2.19

          Where technical limitations prevent the required originator or beneficiary information accompanying a cross-border wire transfer from remaining with a related domestic wire transfer, a record must be kept, for at least five years, by the receiving intermediary institution of all the information received from the ordering financial institution or another intermediary financial institution.

          Added: January 2020

        • AML-2A.2.20

          An intermediary financial institution must take reasonable measures to identify cross-border wire transfers and accepted crypto-asset transfer that lack required originator information or required beneficiary information.

          Added: January 2020

        • AML-2A.2.21

          An intermediary financial institution must have effective risk-based policies and procedures for determining:

          (a) When to execute, reject, or suspend a traditional wire transfer lacking required originator or required beneficiary information; and
          (b) The appropriate follow-up action.
          Added: January 2020

      • Beneficiary Financial Institution

        • AML-2A.2.22

          A beneficiary financial institution must take reasonable measures to identify cross-border wire transfers as well as accepted crypto-asset transfer that lack required originator or required beneficiary information. Such measures may include post-event monitoring or real-time monitoring where feasible.

          Added: January 2020

        • AML-2A.2.23

          For wire transfers as well as accepted crypto-asset transfer, a beneficiary financial institution must verify the identity of the beneficiary, if the identity has not been previously verified, and maintain this information in accordance with Paragraph AML-6.1.1.

          Added: January 2020

        • AML-2A.2.24

          A beneficiary financial institution must have effective risk-based policies and procedures for determining:

          (a) When to execute, reject, or suspend a traditional wire transfer lacking required originator or required beneficiary information; and
          (b) The appropriate follow-up action.
          Added: January 2020