Crypto ATM / kiosk operator in Cuba

Ley No. 143/2021 (Law 143/2021) – Ley de Prevención y Confrontación del Lavado de Activos, el Financiamiento al Terrorismo y a la Proliferación de Armas de Destrucción Masiva

Overview: This is the foundational and comprehensive AML/CFT law in Cuba. It establishes the general obligations for all financial institutions and designated non-financial businesses and professions (DNFBPs), including VASP-like entities, to implement measures to prevent and detect money laundering and terrorist financing. It aligns with FATF Recommendations.

Resolución No. 215/2021 del Banco Central de Cuba (BCC)

Overview: This is the cornerstone regulation specifically for virtual assets. It establishes the rules for the use of certain virtual assets in commercial transactions, their licensing, and supervision in Cuba. It defines virtual assets and virtual asset service providers (VASPs). It explicitly states that the BCC will grant licenses to VASPs that operate in Cuba. It also emphasizes that operations with virtual assets must comply with AML/CFT rules.

Legalizes the use of virtual assets for financial transactions between individuals and legal entities, but only those authorized by the BCC.

Requires service providers dealing with virtual assets to obtain a license from the BCC.

Prohibits the use of virtual assets that are not authorized by the BCC.

Resolución No. 216/2021 del Banco Central de Cuba (BCC)

Overview: This resolution complements Resolution 215/2021 by detailing the licensing process for virtual asset service providers (VASPs). It specifies the requirements, procedures, and conditions that legal entities must meet to obtain a license to operate with virtual assets in Cuba.

Identification and Verification:

Obtain and verify the identity of the customer and, where applicable, the beneficial owner. This includes:

For Individuals: Full legal name, date of birth, address, nationality, national identity number (e.g., ID card, passport), and occupation. Verification must be from reliable, independent sources (e.g., official documents).

For Legal Entities: Legal name, legal form, address of the registered office, names of directors/senior management, beneficial owners, and proof of existence (e.g., articles of incorporation, business registration certificate).

Purpose and Nature of the Business Relationship: Understand the purpose and intended nature of the business relationship or transaction.

Ongoing Monitoring: Conduct ongoing monitoring of the business relationship and transactions undertaken by customers to ensure consistency with the VASP's knowledge of the customer, their business, and risk profile, including the source of funds.

Risk-Based Approach (RBA): Implement a risk-based approach, meaning that the intensity of CDD measures should be commensurate with the level of ML/TF risk identified.

Enhanced Due Diligence (EDD): Must be applied for higher-risk categories, such as:

Central Bank of Cuba (BCC) holds expanded enforcement powers, including unilateral authority to freeze bank accounts without notice and suspend Visa and Mastercard transactions.

Decree-Law 215/2021: Published in the Official Gazette on August 16, 2021, coming into effect 90 days later.

Resolution 215/2021 (BCC): Published on September 2, 2021, detailing the licensing requirements and regulatory framework.

Outcome: Legalization and regulation of virtual assets and virtual asset service providers (VASPs) under the oversight of the Central Bank of Cuba. The framework aims to promote economic development, facilitate remittances, and circumvent financial sanctions, while simultaneously seeking to prevent illicit activities, money laundering, and terrorist financing.