Crypto-funded debit card in Fiji

AML/CFT Compliance: Any entity (exchange, broker, OTC desk) involved in the secondary trading of virtual assets (whether securities or not) is considered a "financial institution" or "designated non-financial business and profession" under Fiji's Anti-Money Laundering and Counter-Financing of Terrorism Act 2017. They would be subject to stringent AML/CFT obligations, including customer due diligence (KYC), suspicious transaction reporting, and record-keeping.

RBF Approval/Notification: For any significant capital raising, foreign exchange implications, or the introduction of new financial products, direct engagement with and potential approval from the Reserve Bank of Fiji would likely be required, especially given their cautious stance on crypto.

Licensing for Platforms: Any platform facilitating the secondary trading of security tokens would need to be appropriately licensed as a securities exchange or a financial market operator by the RBF. Given the lack of specific crypto licenses, this would be a high bar to meet under existing legislation.

Financial Transactions Reporting Act 2004 (FTRA 2004): This is the foundational AML/CFT law in Fiji. It establishes the framework for reporting institutions, customer due diligence, suspicious transaction reporting, and the powers of the Financial Intelligence Unit (FIU).

Financial Transactions Reporting (Amendment) Act 2021:

Customer Identification and Verification:

Individual Customers: Obtain and verify identity using reliable, independent sources (e.g., national ID cards, passports, driver's licenses). This includes full name, date of birth, residential address, and nationality.

Beneficial Ownership: Identify and verify the ultimate natural person(s) who own or control the customer, or on whose behalf a transaction is being conducted. For legal entities, this typically involves identifying individuals with 25% or more ownership/control.

Enhanced CDD (EDD): Must be applied in higher-risk situations, which typically include:

Non-face-to-face business relationships.

Reporting Threshold: There is no monetary threshold for reporting. Any transaction (including attempted transactions), regardless of value, where the VASP suspects or has reasonable grounds to suspect involves money laundering, terrorism financing, or any other criminal activity, must be reported.

Timing: STRs must be submitted promptly to the FIU, typically within a few days of forming the suspicion.

No Tipping-Off: VASPs and their employees are strictly prohibited from "tipping off" or informing the customer or any other third party that an STR has been filed or that an investigation is underway.

Ongoing Monitoring: Continuously monitor the business relationship and transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes monitoring for unusual or suspicious activities.

RBF Statement (2021) - Warning on Virtual Assets and Cryptocurrency (example of consistent messaging):

RBF Statement (2023) - Warning on Virtual Assets and Cryptocurrency: While a specific press release for 2023 isn't easily found, the RBF's general stance is reiterated in public speeches and financial stability reports. Their 2022 Annual Report mentions ongoing monitoring and collaboration with FIU.

Regulator Name: Reserve Bank of Fiji (RBF)

FATF Mutual Evaluation Report for Fiji (2022) - discussing Fiji's VA framework:

Prospectus Requirement: Generally, an offer of securities to the public in Fiji requires the preparation and registration of a prospectus with the Registrar of Companies. This prospectus must contain all material information necessary for investors to make an informed decision.

Licensing: The issuer or any entity advising on, marketing, or facilitating the offering of such security tokens may need to be licensed as a financial services provider by the RBF or other relevant authorities, depending on the nature of their activities (e.g., an investment adviser, broker-dealer, or fund manager).