The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

[F1 Chapter 3 U.K. Unhosted wallet transfers

Textual Amendments

F1 Pt. 7A inserted (1.9.2023) by The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 (S.I. 2022/860), regs. 1(3), 5(5)

Requesting information: unhosted wallet transfers and cryptoasset businesses U.K.

64G.— (1) A cryptoasset business involved in an unhosted wallet transfer may request from its customer (whether the originator or the beneficiary)—

(a) such information specified in regulation 64C(5) as it does not already hold; and

(b) where the unhosted wallet transfer is equal to or exceeds the equivalent in cryptoassets of 1,000 euros in value (taken together with any other cryptoasset transfer which appears to be linked), and where its customer is the beneficiary, the information specified in regulation 64C(6) in respect of the originator.

(2) In determining under paragraph (1) whether to request information from its customer, the cryptoasset business must have regard to—

(a) the risk assessments carried out by the cryptoasset business under regulations 18(1) and 18A(1); and

(b) its assessment of the level of risk of money laundering, terrorist financing and proliferation financing arising from the unhosted wallet transfer.

(3) In assessing the level of risk under paragraph (2)(b), a cryptoasset business must take account of factors including—

(a) the purpose and nature of—

(i) the business relationship with its customer (whether beneficiary or originator); and

(ii) the unhosted wallet transfer;

(b) the value of the unhosted wallet transfer and any cryptoasset transfer which appears to be linked;

(c) the frequency of cryptoasset transfers made by or to the customer (whether beneficiary or originator) via the cryptoasset business; and

(d) the duration of the business relationship with its customer.

(4) In the event that the cryptoasset business involved in an unhosted wallet transfer does not receive information requested under paragraph (1) it must not make the cryptoasset available to the beneficiary.]