FR - Tightening the AML/CFT framework applicable to digital assets
The Order of 9 December 2020 seeks to bring the French regulatory framework for digital assets into compliance with the FATF's recommendations on anti-money laundering and combatting financing of terrorism (AML/CFT).
Firstly, it extends the obligation to register with the AMF to so-called “crypto-to-crypto” exchange services and digital asset trading platforms, without prior checking of AML/CFT arrangements for such services;
It also limits the due diligence required for these services to verification of the good repute and competence of their managers and beneficial owners;
It retains due diligence for services that were already subject to same (digital asset custody services for third parties, so-called “crypto-to-fiat” services) but refocuses it on key AML/CFT obligations in order to streamline the procedure;
It extends the obligation to comply with AML/CFT measures set out in the Monetary and Financial Code to services that exchange digital assets for other digital assets and to digital asset trading platforms;
Moreover, it gives digital assets service providers (DASPs) the option of using third parties to fulfil their due diligence obligations when entering into a business relationship, and of fulfilling these obligations themselves on behalf of third parties.