Remote VASP serving residents in Cote d'Ivoire

Côte d’Ivoire, as a member of WAEMU, is subject to Regulation 06/2024/CM/WAEMU of December 20, 2024, which establishes dedicated exchange control rules for virtual assets, effectively creating a regulatory framework for virtual assets in the WAEMU zone.

BCEAO's Cautious Stance: The BCEAO has historically adopted a cautious, and at times prohibitive, stance towards cryptocurrencies due to concerns about monetary stability, consumer protection, money laundering, and illicit financing. They have issued warnings to financial institutions and the public about the risks associated with cryptocurrencies.

Required Licenses: Approval as a Payment Institution or Electronic Money Issuer (EME) from the BCEAO.

Local presence and management.

Required Registration: Registration with the commercial registry (RCCM - Registre du Commerce et du Crédit Mobilier) and relevant tax authorities in Cote d'Ivoire.

Capital requirements (significant).

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 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.

Identification and Verification of Identity:

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:

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).

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.

All customer identification data (e.g., copies of identification documents).

BCEAO Instruction No. 003/2022/RB of 17 November 2022 relating to the prevention of money laundering and terrorist financing by entities subject to the control of the BCEAO. This instruction specifically integrates "virtual asset service providers (PSAVs)" into the scope of regulated entities and details their AML/CFT obligations.

For cross-border transfers: The Travel Rule information (originator and beneficiary details) must be transmitted for transfers exceeding EUR 1,000 (or equivalent). Below this threshold, VASPs are still required to collect and hold the information but may not be required to send it with the transfer itself to the beneficiary VASP, unless deemed suspicious.

Maintain records of all transactions and customer information for at least five years.

Administrative Sanctions: Imposed by the BCEAO or CENTIF. These can range from warnings and reprimands to substantial financial penalties (fines proportional to the severity and duration of the breach, or a percentage of turnover), temporary suspension of activities, or even permanent withdrawal of operating licenses.

Criminal Sanctions: For severe or repeated breaches, especially those involving intentional facilitation of money laundering or terrorist financing, criminal charges can be brought against individuals (directors, employees) and the entity itself. These can include imprisonment and heavier fines, as defined in the national penal code and AML/CFT law.

Entity Targeted: General public and financial institutions operating within the UEMOA zone (including Côte d'Ivoire). Violation Type: While not a "violation" in the traditional sense, the BCEAO's consistent stance warns against the use, holding, or facilitation of transactions involving cryptocurrencies, emphasizing their speculative nature, lack of regulatory oversight, and potential for fraud and money laundering. It effectively "enforces" a non-recognition policy. Penalty Amount: Not applicable, as this is a general regulatory stance and warning, not a specific penalty against an entity. Outcome: A clear declaration that cryptocurrencies are not legal tender, are not regulated, and pose significant risks. Financial institutions are generally dissuaded from engaging with them. This discourages formal crypto operations.

Outcome: A clear declaration that cryptocurrencies are not legal tender, are not regulated, and pose significant risks. Financial institutions are generally dissuaded from engaging with them. This discourages formal crypto operations.

Overall Regulatory Stance (BCEAO):

There are no specific BCEAO licensing requirements for crypto custody, as cryptocurrencies are not recognized or regulated by the BCEAO. However, entities engaged in activities that intersect with traditional financial services (e.g., handling fiat currency, money transfers, or operating as a bank or payment institution) are subject to existing WAEMU financial licensing requirements, including AML/KYC obligations under the BCEAO's regulatory framework. National-level business licensing (e.g., registration with the Commercial Court in Côte d'Ivoire) also applies.

The BCEAO's regulatory framework does not include specific rules for the segregation of cryptocurrency assets. While BCEAO regulations mandate segregation for fiduciaires in the traditional financial system (e.g., for securities maintained by investment service providers), these regulations explicitly exclude digital assets not recognized as financial instruments. Entities holding crypto assets may still be subject to general consumer protection or business contract laws at the national level in Côte d'Ivoire, but no specific segregation mandate from the BCEAO exists.