F1PART 7ACryptoasset Transfers

Annotations:
Amendments (Textual)

Chapter 2Inter-cryptoasset business transfers

Missing information: intermediaries64E

1

When an intermediary cryptoasset business receives a cryptoasset as part of an inter-cryptoasset business transfer it must, before further transferring the cryptoasset, check whether it has received the information required by regulation 64C to be provided.

2

Where an intermediary cryptoasset business becomes aware that any information required by regulation 64C to be provided is missing, the intermediary cryptoasset business must—

a

request the cryptoasset business from which it received the transfer to provide the missing information; and

b

consider whether—

i

to delay the onward transfer of the cryptoasset until the information is received; and

ii

if the information is not received within a reasonable time, to return the cryptoasset to the cryptoasset business from which it was received.

3

In deciding what action to take under paragraph (2)(b) an intermediary cryptoasset business must have regard to—

a

the risk assessments carried out by the intermediary 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 inter-cryptoasset business transfer.

4

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

a

the purpose and nature of the business relationship with its customer cryptoasset business, and of the inter-cryptoasset business transfer; and

b

the value of the inter-cryptoasset business transfer and any cryptoasset transfer which appears to be linked.

5

An intermediary cryptoasset business must report to the FCA repeated failure by a cryptoasset business to provide any information required by regulation 64C as well as any steps the intermediary cryptoasset business has taken in respect of such failures.