Macedonia Adopts Strong Anti-Money Laundering Regulations for Crypto Market
Introduction
In a significant move to combat money laundering and terrorism financing, Macedonia has enacted new laws that bring its anti-money laundering (AML) regulations in line with European Union standards. The legislation introduces stringent controls on the country’s crypto market, making it one of the most robust in the region.
New AML Regulations for Virtual Assets
Under the new law, service providers related to virtual assets are required to implement control mechanisms to prevent money laundering and terrorist financing. This includes:
- Ban on anonymous virtual assets: Trading fully anonymous virtual assets, also known as privacy coins, is prohibited.
- Anonymization tools: The use of software tools that can anonymize transactions is banned.
Supervisory Authority and Reporting Requirements
The Financial Intelligence Office will serve as the supervisory authority for AML compliance in the virtual asset sector. Service providers must:
- Notify the office within 30 days of commencing business activities.
- Report any exchange of virtual assets or money exceeding €1,000.
Transition Period and Enhanced AML Measures
A nine-month transitional period has been allowed for service providers to comply fully with the new regulations. Additionally, non-profit organizations will be subject to more rigorous risk assessments and analysis under enhanced AML measures.
Key Provisions of the Legislation
The legislation incorporates specific EU-compliant provisions related to:
- Client identification: Service providers must ensure accurate client identification.
- Ultimate beneficial owner (UBO) analysis: UBO analysis is a mandatory requirement for service providers.
- Registration with the UBO registry: Service providers must register with the UBO registry.
The law also regulates international cooperation with other competent authorities and financial intelligence units.
Conclusion
Macedonia’s new AML regulations are a significant step towards protecting its financial system from money laundering and terrorism financing risks associated with virtual assets. The country’s commitment to digital innovation is evident in the law’s promotion of digitized work processes and secure data exchange via protected electronic means or through the National Platform for Interoperability.