Eritrea -- Travel Rule Implementation Regulatory Overview

Based on available information, Eritrea has not adopted or implemented the FATF Travel Rule (Recommendation 16, Interpretive Note for Virtual Assets and VASPs). Its regulatory framework does not appear to encompass specific provisions for Virtual Asset Service Providers (VASPs) or the requirements of the Travel Rule.

Here's a breakdown:

• Whether Adopted:

  • Status: Not adopted. Eritrea's primary anti-money laundering and combating the financing of terrorism (AML/CFT) legislation, the Anti-Money Laundering and Combating the Financing of Terrorism Proclamation No. 174/2016, predates the FATF's specific guidance on virtual assets and the Travel Rule (which was significantly updated in June 2019).
  • The Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), of which Eritrea is a member, published its Mutual Evaluation Report for Eritrea in 2019. This report assessed Eritrea's compliance with the FATF Recommendations prior to the detailed Travel Rule guidance for VASPs becoming widely understood and implemented. The report noted significant deficiencies in Eritrea's AML/CFT framework generally, and specifically highlighted that "Eritrea has not taken measures to regulate or supervise virtual assets or virtual asset service providers (VASPs)."
  • There is no public record or subsequent legislation indicating that Eritrea has updated its framework to include virtual assets or the Travel Rule.

• Effective Date:

  • Not applicable, as the rule has not been adopted.

• Threshold Amounts:

  • Not applicable. Since the Travel Rule is not adopted, there are no defined threshold amounts for virtual asset transfers that would trigger information-sharing requirements.

• Which VASPs are Covered:

  • Not applicable. There is no specific regulatory or licensing framework for VASPs in Eritrea. It's highly probable that any significant virtual asset activity would be viewed with suspicion by authorities given the country's tightly controlled financial sector.

• Technical Implementation Requirements:

  • Not applicable. Without legal adoption, there are no specified technical requirements for VASPs to implement.

• Penalties for Non-Compliance:

  • Not applicable specifically to the Travel Rule. Penalties for general AML/CFT non-compliance would exist under Proclamation No. 174/2016, but these would not directly apply to Travel Rule violations given the lack of specific VASP regulation.

In summary, Eritrea remains largely unaddressed regarding virtual assets and the FATF Travel Rule. The country has significant gaps in its overall AML/CFT framework, and the regulation of nascent areas like virtual assets is not a current priority, nor has any progress been observed in this regard.

References:

• ESAAMLG Mutual Evaluation Report of Eritrea (2019): This report details Eritrea's AML/CFT compliance status and explicitly mentions the lack of regulation for virtual assets.
  • ESAAMLG Website - Mutual Evaluation Reports (You would need to navigate to Eritrea's report from this page.)
• FATF Guidance on Virtual Assets and VASPs (for context): This document outlines the Travel Rule and other recommendations for virtual assets.
  • FATF Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers
• Anti-Money Laundering and Combating the Financing of Terrorism Proclamation No. 174/2016 (Eritrea): While this is Eritrea's key AML/CFT law, a direct, easily accessible URL for the full text in English is typically difficult to find online for Eritrean legislation. It is referenced in the ESAAMLG Mutual Evaluation Report.