Financial Crime World

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Financial Intelligence Center Issues Directive on Virtual Asset Service Providers

Background

The Financial Intelligence Center (FIC) has issued a directive aimed at combating money laundering, terrorist financing, and proliferation of financial instruments (ML/TF/PF) by regulating Virtual Asset Service Providers (VASPs).

Definition of VASPs

According to the FIC, VASPs include individuals or entities that provide services within the VA value chain, including:

  • Houses
  • Agents
  • Brokers
  • Mixers
  • Traders
  • Virtual asset managers
  • Persons providing trade, clearance, and settlement services of VAs
  • Others

The directive excludes persons offering services that merely support the administration or functioning of technologies/platforms on which VAs operate.

FIC Regulates VASPs

The FIC regulates VASPs through a directive and guidance issued in 2021. The agency is responsible for monitoring the activities of VASPs to ensure compliance with anti-money laundering, combating the financing of terrorism, and proliferation (AML/CFT/CPF) regulations.

What is Corruption?

Corruption can be defined as the abuse of position or power to undermine legitimate public interests for personal gain. It often takes many forms, including:

  • Bribery: soliciting or offering something of value to influence an official’s actions
  • Kickback: a commission paid to a bribe-taker for services rendered
  • Illegal gratuities: items given to reward a decision after it has been made
  • Collusion: an agreement between individuals to commit an act designed to deceive or gain an unfair advantage

Types of Corruption

According to the Anti-Corruption Agency (ACC), corruption can take several forms, including:

  • Bribery
  • Kickback
  • Illegal gratuities
  • Collusion

FIC’s Role in Fighting Corruption

The FIC plays a crucial role in fighting corruption by analyzing data and identifying proceeds of predicate offences, including corruption. The agency works with relevant stakeholders, including regulatory bodies, law enforcement agencies, and the Office of the Prosecutor General.

STR Information Sharing

Accountable institutions are not allowed to share Suspicious Transaction Reports (STRs) information with their financial group or any other institution.

Identification Documents

Accountable and reporting institutions must obtain certified copies of identification documents from their clients.