FCA’s proposed changes to AML reporting could catch out crypto exchanges
Earlier this week the FCA announced proposals to extend anti-money laundering reporting requirements in its financial crime controls to include virtual currency exchanges, such as all cryptoasset exchange providers and custodian wallet providers. The aim of the change is to strengthen AML defences.
Proposed changes
The FCA is now reconsidering the revenue threshold and proposes broadening its net to include firms, “that carry on regulated activities that we consider potentially pose higher money laundering risks.” This applies to firms or business that the FCA supervise under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLRs“).
The plans also require entities such as those that advise on investments and hold client money, as well as those that manage investments, to submit the updated reports. A new category of firms, within the scope of the FCA’s obligation, are cryptoasset exchange providers, which include businesses that exchange virtual money or cryptoassets or arrange their exchange.
Finally, the FCA plan to remove the following activities from the scope as they are no longer considered as falling within the MLRs:
1. home finance mediation activity; and
2. making arrangements with a view to transactions in investments.
https://www.finance-disputes.co.uk/2020/08/fcas-proposed-changes-to-aml-reporting-could-catch-out-crypto-exchanges/Ok, so here we are again, a new proposal is being talk out, including revenue thresholds.
I think crypto exchanges are slowly becoming like a traditional banking system with all this proposals. I don't know if this is good news for crypto enthusiast as it means everything is being track, but what if you are just a regular trader and not pose as high risk for money laundering?