Custodial wallet / SaaS in Brunei

There are no specific licenses for standalone cryptocurrency or digital asset custodians in Brunei.

For entities not already licensed as financial institutions, offering digital asset custody is being actively monitored by the Brunei Central Bank (BDCB), which defines a clear regulatory boundary, requiring specific authorization for such activities.

There are no explicit rules or mandates regarding the segregation of client digital assets for non-traditional financial entities operating as custodians.

There are no specific insurance or bonding requirements for digital asset custodians in Brunei.

There are no specific mandates or requirements for the use of cold storage for digital assets.

There is no legal definition for a "qualified custodian" specifically in the context of digital assets within Brunei's regulatory framework.

There is no publicly announced or pending legislation specifically addressing digital asset custody.

Anti-Money Laundering and Counter-Financing of Terrorism Order, 2011 (AMLCFTO, 2011): This is the primary legislation for AML/CFT in Brunei. While it does not explicitly mention "cryptocurrency" or "digital assets," financial institutions and designated non-financial businesses and professions (DNFBPs) are subject to its provisions.

If activities involving digital assets were deemed to fall under the definition of "financial services" or "money or value transfer services" (MVTS) as per the FATF recommendations, then entities providing such services would be expected to comply with AML/CFT obligations, including customer due diligence (CDD), record-keeping, and suspicious transaction reporting (STR).

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.

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.

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

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.

Money-changing and remittance activities involving the exchange or transfer of fiat funds in Brunei must be licensed by the Brunei Darussalam Central Bank (BDCB) under the current regulatory framework; BDCB is the successor to the Autoriti Monetari Brunei Darussalam (AMBD), and licensing is no longer issued under the 2011 Order in AMBD’s name.

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.

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.

Beneficial Ownership: Identifying and taking reasonable measures to verify the identity of the beneficial owner(s) of customers, including understanding the ownership and control structure of legal persons and arrangements.

Purpose and Intended Nature of Business Relationship: Understanding the purpose and intended nature of the business relationship.

Risk-Based Approach: Applying a risk-based approach to CDD. This means:

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.

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.

Appoint a qualified Money Laundering Reporting Officer (MLRO).

Provide ongoing AML/CFT training to relevant employees.