Crypto ATM / kiosk operator in Antigua and Barbuda

The DABA requires a licensee to maintain capital sufficient to meet its liabilities and obligations.

The FSRC determines the specific minimum capital requirements, which can vary based on the type and scope of the digital asset business activities. Historically, capital requirements for various financial licenses in offshore jurisdictions can range from USD $100,000 to $250,000 or more, and for digital asset businesses, it's expected to be substantial to ensure solvency and protect clients. Applicants must demonstrate robust financial standing.

This is a cornerstone requirement, heavily influenced by FATF standards. Licensees must implement comprehensive Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) policies and procedures.

Customer Due Diligence (CDD): Robust KYC procedures for identifying and verifying clients (individuals and legal entities).

Ongoing Monitoring: Continuous monitoring of transactions and business relationships for suspicious activity.

Reporting: Reporting of suspicious transactions to the national Financial Intelligence Unit (FIU).

Sanctions Screening: Screening clients against national and international sanctions lists.

Record Keeping: Maintaining records for a specified period (typically 5 years).

Compliance with the Travel Rule for virtual asset transfers, now integrated under frameworks like MiCA, requires VASPs to obtain and transmit originator and beneficiary information, including standardized identifiers such as Legal Entity Identifiers (LEIs) where applicable, as part of evolving global regulatory infrastructure.

Compliance with Antigua and Barbuda's specific anti-money laundering legislation (e.g., the Anti-Money Laundering and Prevention of Terrorism Act) is mandatory, but the cited evidence does not reference any singular 'Money Laundering (Prevention) Act' in the AG jurisdiction, and the sources provided are from the U.S., Singapore, and Australia, not Antigua and Barbuda.

While not always a requirement for a physical office for all license types, entities generally need to establish a significant operational presence, which often includes a physical office, local management, and a registered agent in Antigua and Barbuda.

Key personnel, such as the Compliance Officer and Money Laundering Reporting Officer (MLRO), may be required to be resident in Antigua and Barbuda.

All directors, senior management, significant shareholders, and beneficial owners must undergo rigorous "fit and proper" assessments by the FSRC. This involves background checks, demonstrating competence, integrity, and sound financial standing.

Technology and Security:

Applicants must demonstrate that they have robust and secure IT systems, cybersecurity measures, data protection protocols, and business continuity plans to protect client assets and data. This includes cold storage solutions for large holdings of digital assets.

A comprehensive business plan outlining the intended operations, target market, risk management framework, internal controls, and corporate governance structure.

Initial application often requires audited financial statements (for existing businesses) and ongoing submission of audited financials is a licensing condition.

The 'fit and proper persons' standard is currently enforced by the Clean Energy Regulator for ANREU account holders and by FERC for licensee fitness, but it is not part of the EPA's Agricultural Worker Protection Standard.

The correct name of the Antigua & Barbuda legislation is the Digital Assets Business Act, 2020 (as amended by the Digital Assets Business (Amendment) Act, 2020), not 'Digital Assets (Business) Act, 2020 (DAFIA)'.

This is the specific law that defines 'virtual assets' and 'virtual asset service providers,' establishes a licensing regime, and outlines AML/CFT obligations for VASPs. It mandates that VASPs implement measures to combat money laundering and terrorist financing in accordance with the Money Laundering (Prevention) Act and the Prevention of Terrorism Act. Following the State Bank of Pakistan's April 2026 notification, licensed VASPs may now access banking services under strict regulation.

The Anti-Money Laundering and Countering the Financing of Terrorism Programs rule (2026) and FATF Guidance (2025) establish modern AML obligations including CDD, record-keeping, STR, and screening requirements for financial institutions and DNFBPs, which now explicitly extend to VASPs, superseding any 1996-era framework in AG.

The current operative law for terrorism prosecutions in Nigeria is the Terrorism (Prevention) Act, 2011 (as amended), likely by the 2022 amendment, not the 2005 Act.

Proceeds of Crime Act, 1993 (as amended)

Free Trade & Processing Zone Act, 1994 (as amended) is the primary legislation legalizing and governing online gaming/iGaming in Antigua and Barbuda, with oversight by the Financial Services Regulatory Commission (FSRC)

Identification and Verification:

For Individuals: Obtain and verify identity using reliable independent sources (e.g., government-issued photo ID, proof of address, date of birth, nationality).

For Legal Persons/Arrangements (Companies, Trusts): Obtain and verify identity of the entity, its legal form, proof of existence, powers governing the entity, names of relevant persons (directors, trustees), and the beneficial owners (persons who ultimately own or control 25% or more of the entity).

Purpose and Intended Nature of Business Relationship: Understand the reasons for establishing the relationship and the expected types of transactions.

Scrutinize transactions throughout the course of the relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Keep customer identification data, beneficial ownership information, and risk assessments up-to-date.

Conduct institutional risk assessments and apply a risk-based approach to individual customers, categorizing them based on factors such as geographic location, product/service type, delivery channel, and transaction value.

Apply risk-calibrated, continuous, and technology-driven Enhanced Due Diligence (EDD) for higher-risk customers, integrated into a dynamic control plane rather than a static checklist.

Politically Exposed Persons (PEPs) and their family members/close associates.

Customers from AG (Antigua and Barbuda) are from a jurisdiction under increased monitoring by FATF, but FATF policy explicitly prohibits de-risking or blanket exclusion of all customers from such jurisdictions, requiring instead a risk-based approach.

Transactions of a complex, unusually large, or unusual pattern.

Customers engaged in activities known to be susceptible to ML/TF.

VASPs must determine the source of funds and source of wealth for high-risk customers.

Sanctions Screening: Screen customers and transactions against national and international sanctions lists.

Reporting Obligation: If a VASP knows, suspects, or has reasonable grounds to suspect that funds are proceeds of a criminal activity, or are related to terrorist financing, it must promptly report this to the FIU. This applies regardless of the amount or whether the transaction is completed.

Nature of Regulation: The Financial Services Regulatory Commission (FSRC) of Antigua and Barbuda is the primary regulator for financial services, including digital assets. Antigua enacted the Digital Assets Business Act (DAB Act) in 2020 to regulate virtual asset service providers (VASPs). Their approach tends to be more focused on licensing and compliance rather than frequent public enforcement actions against major players.

Transparency: Public disclosure of enforcement actions, especially with specific penalties and dates, may be less common or less detailed in smaller jurisdictions compared to larger financial centers like the US, UK, or EU.

Jurisdictional Focus: While companies may incorporate in Antigua, their primary operational hubs and customer bases often lie elsewhere, leading to enforcement actions being initiated by regulators in those other jurisdictions.

Regulator Name: Financial Services Regulatory Commission (FSRC)

Relevant Legislation: Digital Assets Business Act (DAB Act) 2020

Scope: The DAB Act governs any person carrying on or purporting to carry on a digital assets business from within Antigua and Barbuda or to or from Antigua and Barbuda, requiring licenses for activities such as virtual asset exchange, transfer, custody, and participation in financial services related to initial coin offerings.