Cote d'Ivoire -- AML/CFT Compliance Regulatory Overview

Cote d'Ivoire, as a member of the West African Economic and Monetary Union (UEMOA/WAEMU) and influenced by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) and the Financial Action Task Force (FATF), has a legal framework for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT).

However, it is crucial to note that Cote d'Ivoire, like many West African nations, currently lacks specific, comprehensive legislation directly regulating cryptocurrency/virtual asset service providers (VASPs) as licensed entities. The Central Bank of West African States (BCEAO), which covers Cote d'Ivoire, has consistently issued warnings regarding the risks associated with cryptocurrencies, stating they are not recognized as legal tender and are not regulated by the BCEAO.

Despite the absence of specific VASP licensing, existing general AML/CFT laws are generally interpreted to apply to entities that deal with financial transactions, including those involving virtual assets, especially if they are deemed "financial institutions" or "designated non-financial businesses and professions (DNFBPs)" under the law. Therefore, any entity operating with virtual assets in Cote d'Ivoire would be expected to comply with the general AML/CFT framework.

Here's an overview of the AML/CFT requirements based on current legislation:

AML/CFT Legislation in Cote d'Ivoire

The primary AML/CFT legislation in Cote d'Ivoire is:

• Ordonnance n°2019-1089 du 18 décembre 2019 portant modification de la Loi n°2014-393 du 20 juin 2014 relative à la lutte contre le blanchiment de capitaux et le financement du terrorisme.
  • This Ordinance modified and strengthened the earlier Law n°2014-393, bringing it more in line with international standards set by FATF. It is the core legal text for AML/CFT.
  • This law defines "obliged entities" (assujettis) which include financial institutions, and potentially DNFBPs. While VASPs are not explicitly named, depending on the services offered, they could fall under these broad categories, particularly if they facilitate exchanges, transfers, or safekeeping of assets.
• Règlement n°07/2002/CM/UEMOA du 19 septembre 2002 relatif à la lutte contre le blanchiment de capitaux dans les États membres de l'UEMOA.
  • This is a regional regulation by UEMOA, which member states like Cote d'Ivoire are required to transpose and apply. It provides the general framework for AML/CFT in the region.

Important Context Regarding Virtual Assets:

• The BCEAO has issued several communiqués warning against the use of cryptocurrencies (e.g., Communiqué du 12 décembre 2013, Communiqué du 05 décembre 2017, Communiqué du 22 mai 2018). These communiqués generally state that cryptocurrencies are not legal tender, are not regulated by the BCEAO, and carry significant risks. This stance means there is no formal licensing regime for VASPs in the UEMOA region, including Cote d'Ivoire, and operating in this space carries inherent regulatory ambiguity. However, the absence of specific regulation does not exempt entities from general AML/CFT obligations.

Key AML/KYC Requirements for Obliged Entities (Potentially Including VASPs)

Based on the Ordonnance n°2019-1089, any entity falling under the scope of "obliged entities" (assujettis) must adhere to the following:

1. Customer Due Diligence (CDD) Requirements

Obliged entities must implement robust CDD measures to identify and verify the identity of their customers. This includes:

• Identification and Verification of Identity:
  • For Individuals: Obtaining and verifying the customer's full name, date and place of birth, nationality, residential address, profession, and a unique identification number (e.g., national ID card, passport, driver's license). Verification must be based on reliable, independent source documents or data.
  • For Legal Persons/Entities (e.g., businesses): Obtaining and verifying the company's name, legal form, address of registered office, registration number, articles of incorporation, bylaws, and identifying the directors and persons authorized to represent the legal person.
  • Beneficial Ownership: Identifying and taking reasonable measures to verify the identity of the beneficial owner(s) (i.e., the natural person(s) who ultimately own or control the customer, or on whose behalf a transaction is being conducted). For legal persons, this typically involves identifying individuals holding 25% or more of the shares or voting rights, or otherwise exercising control.
• Purpose and Nature of the Business Relationship: Understanding the purpose and intended nature of the business relationship or occasional transaction.
• Ongoing Monitoring: Conducting ongoing due diligence on the business relationship and scrutinizing transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the obliged entity's knowledge of the customer, their business, and risk profile.
• Enhanced Due Diligence (EDD): Applying EDD measures in higher-risk situations, including:
  • Business relationships with Politically Exposed Persons (PEPs).
  • Transactions involving high-risk countries.
  • Complex, unusual, or large transactions.
  • Situations where the customer is not physically present for identification purposes (non-face-to-face transactions).
  • Transactions involving new technologies and products (which could include virtual assets) whose anonymity could favor ML/TF.
• Simplified Due Diligence (SDD): Permitted in low-risk situations, as defined by regulation.

2. Suspicious Transaction Reporting (STR)

• Obligation to Report: Obliged entities must report any transaction (or attempted transaction) that they suspect is linked to money laundering or terrorist financing to the Financial Intelligence Unit (FIU).
• Reporting Mechanism: Reports are made to CELLIF (see below).
• Content of Report: The report should include all available information concerning the customer, the transaction, and the reasons for suspicion.
• No Tipping-Off: Obliged entities and their employees are prohibited from disclosing to the customer or to third parties that an STR has been filed or that an investigation is underway.

3. Record-Keeping Obligations

Obliged entities are required to maintain records of:

• All customer identification data (e.g., copies of identification documents).
• Account files and business correspondence.
• Transaction data in a way that allows for reconstruction of individual transactions (including amounts, currencies, dates, sender/recipient details, and nature of the transaction).
• The records must be kept for a minimum period of five (5) years after the end of the business relationship or after an occasional transaction. This period can be extended by legal or regulatory provisions.

Authority Overseeing Compliance

The primary authority for AML/CFT compliance in Cote d'Ivoire is:

• Cellule Nationale de Traitement des Informations Financières (CELLIF)

  • Role: This is Cote d'Ivoire's Financial Intelligence Unit (FIU). It is responsible for receiving, analyzing, and disseminating suspicious transaction reports to competent authorities (e.g., law enforcement, judicial bodies). CELLIF is the central body for AML/CFT intelligence.
  • Website (if available): Accessing a specific official website for CELLIF can be challenging as many FIUs are integrated into a Ministry of Finance. However, information is often found on the Ministry's site or through GIABA:
    • While a direct, independent website for CELLIF may not be readily available or consistently maintained, information about Cote d'Ivoire's FIU and its contact details are often provided within the reports of international bodies like GIABA or the Egmont Group. For general information on FIUs in West Africa:
    • GIABA (Inter-Governmental Action Group against Money Laundering in West Africa): https://giaba.org/ (You can find country profiles and information on FIUs here).
    • You might also find information within the website of the Ministry of Economy and Finance of Cote d'Ivoire: https://www.finances.gouv.ci/

• Central Bank of West African States (BCEAO)

  • Role: While not directly overseeing AML/CFT for all entities, the BCEAO is the regional central bank and plays a crucial role in regulating licensed financial institutions within UEMOA member states. For any entity providing payment services or operating in a manner that falls under traditional financial services (even if using virtual assets), the BCEAO's regulatory framework for financial institutions and payment systems would apply.
  • Website: https://www.bceao.int/

Conclusion for VASPs in Cote d'Ivoire

Given the current regulatory landscape:

1. No Specific VASP Licensing: There is no dedicated licensing or regulatory framework for Virtual Asset Service Providers (VASPs) in Cote d'Ivoire or the broader UEMOA region.
2. BCEAO Warning: The BCEAO maintains a cautious stance, considering cryptocurrencies unregulated and risky. This creates a challenging environment for formal VASP operations.
3. General AML/CFT Applies: Any entity dealing with virtual assets, especially those providing services that resemble traditional financial activities (e.g., exchange, transfer, custody), should consider themselves an "obliged entity" under Cote d'Ivoire's AML/CFT laws (Ordonnance n°2019-1089) and comply with all CDD, STR, and record-keeping requirements. Non-compliance carries significant penalties.
4. Regulatory Risk: Operating without explicit authorization or a clear regulatory framework from the BCEAO or national authorities exposes VASPs to significant regulatory and legal risks, including potential future prohibitions or unexpected enforcement actions.

It is highly recommended for any entity considering VASP operations in Cote d'Ivoire to seek independent legal advice to assess their specific activities against the evolving legal framework and ensure full compliance.