Crypto ATM / kiosk operator in Brunei

No Specific VA Licensing Regime: There is no dedicated law or regulation in Brunei that specifically defines, regulates, or licenses virtual asset service providers (VASPs) for activities like operating crypto exchanges, providing crypto custody, or processing crypto payments.

In Brunei, cryptocurrency is illegal as of 2025, so any exchange facilitating fiat-to-crypto or crypto-to-fiat transactions is conducting an unauthorized, illegal activity rather than a licensed or permissible regulated activity.

VAs Not Legal Tender: Cryptocurrencies are not recognized as legal tender in Brunei.

AMBD Warnings: AMBD has consistently warned the public about the risks associated with investing in virtual currencies and participating in Initial Coin Offerings (ICOs), highlighting their speculative nature, volatility, lack of underlying value, and the absence of regulatory protection.

Money-Changing and Remittance Businesses Order, 2011: Requiring a license for money services businesses.

Local Presence: Yes, generally, a local physical presence and local management/board members are required for licensed financial institutions in Brunei.

Conservative Approach: Brunei's regulators are generally conservative. Operating in an unregulated space with high risk, without specific guidance from AMBD, carries significant legal and reputational risks.

Anti-Money Laundering and Counter-Terrorism Financing Order, 2011 (AMLO 2011): This is the foundational law that establishes the AML/CFT framework in Brunei. It defines reporting institutions, sets out obligations, and empowers AMBD as the supervisory authority.

AMBD AML/CFT Guidelines for Financial Institutions: While often general, AMBD has clarified that these guidelines, issued under the AMLO 2011, apply to VASPs. These guidelines provide detailed instructions on implementing the requirements of the AMLO 2011.

AMBD's Statement/Circulars on Virtual Assets: AMBD has issued public statements (e.g., "Statement on Virtual Assets") clarifying that virtual asset activities and VASPs fall within the scope of regulated financial activities for AML/CFT purposes. These statements emphasize compliance with the AMLO 2011 and FATF Recommendations, specifically Recommendation 15 concerning virtual assets.

Identification and Verification (ID&V) of Customers:

Brunei no longer mandates the collection and verification of beneficial owners for legal entities as previously stated.

Enhanced CDD (EDD): Required for higher-risk customers, business relationships, or transactions (e.g., Politically Exposed Persons (PEPs), cross-border correspondent relationships, complex transactions, transactions with high-risk jurisdictions). EDD measures might include obtaining additional information on the customer, beneficial owner, source of funds/wealth, and the reasons for intended transactions.

Obligation to Report: VASPs are obligated to report any transaction (or attempted transaction) that they know, suspect, or have reasonable grounds to suspect is related to money laundering or terrorist financing.

Reporting Body: Reports must be submitted to the Brunei Financial Intelligence Unit (FIU), which operates within AMBD.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that a STR has been, or will be, made.

Duration: Records must be retained for at least five (5) years after the business relationship ends or after the date of the transaction. This ensures that records are available for audit, investigation, and analysis by competent authorities.

Implement robust internal AML/CFT policies, procedures, and controls.