Transfer of Funds Regulation (CASPs)
Providers of crypto-asset services licensed by the AFM (CASPs) must comply with the obligations arising from the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft) and the Sanctions Act 1977. In addition to the requirements pursuant to the Wwft and the Sanctions Act, CASPs are required to comply with the AML/CFT requirements incorporated in the Regulation on information accompanying transfers of certain crypto-assets and amending the Fourth Anti-Money Laundering Directive, also referred to as the Transfer of Funds Regulation (TFR).Under this regulation, CASPs must include certain transaction data of both the originator and the beneficiary of the transaction with each individual transfer of crypto-assets, also known as the “Travel Rule”. In addition, the TFR requires CASPs to take measures to identify and verify ownership and control of self-hosted addresses.
In principle, this obligation applies to transactions to or from self-hosted wallets exceeding a transaction amount of EUR 1,000. However, this obligation may also apply to transactions below this threshold, for example where the client’s risk profile in relation to money laundering and/or terrorist financing requires CASPs to do so.
In addition to the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft) and Sanctions Act Guideline, these obligations for CASPs under the Wwft, the Sanctions Act 1977 and the TFR are further explained in the Annex to the Guideline Wwft and Sanctions Act (pdf, 460 kB). Also relevant for compliance with requirements aimed at detection and prevention of money laundering and terrorist financing, are the various Guidelines published by the European Banking Authority (EBA), in particular the EBA TFR Guidelines.