UK’s FCA Tasked with Supervising AML/CTF Compliance in Digital Asset Industry







The Financial Conduct Authority (FCA) announced Friday that it will be supervising the digital asset industry’s compliance with anti-money-laundering (AML) and counter-terrorist-financing (CTF) requirements.

The FCA’s supervisory authority will reportedly extend to all UK businesses engaged in certain specific crypto-related activities, including exchange providers, crypto ATMs, peer-to-peer providers, new crypto asset offerings (ICOs), and custodian wallet providers.

According to the FCA’s announcement,  the agency expects those businesses to identify their companies’ money laundering and terror financing risks, implement policies and controls to mitigate those risks, and appoint a board member or senior manager to ensure compliance with regulations.

In addition, the regulator will require companies to do more customer due diligence, with enhanced due diligence for any customers perceived to represent a higher risk for money laundering or terror financing. The companies will also be expected to monitor customer transactions with an eye toward identifying behavior inconsistent with a customer’s established profile.

Affected businesses will also be expected to register with the FCA by submitting registration applications by June 2020.



Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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