DeFi protocol frontend in Fiji

Investment Tokens: Any token offered with the expectation of profit derived from the efforts of others, where the investor is largely passive. This includes:

In a Common Enterprise: The investor's funds are pooled with others, and their fortunes are linked to the success or failure of the enterprise.

Deriving Primarily from the Efforts of Others: The profits are expected to come from the managerial or entrepreneurial efforts of the issuer or a third party, rather than the investor's own active participation.

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).

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).

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.

Legal Entities (Companies, Trusts, etc.): Obtain and verify the entity's name, legal form, proof of existence, registered address, and the names of directors/partners/trustees.

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.

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

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.

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

Customers from high-risk jurisdictions.

Politically Exposed Persons (PEPs) and their family members/close associates.

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.

Internal Reporting: VASPs must establish internal procedures for reporting suspicious activities to a designated AML Compliance Officer, who is then responsible for filing the STR with the FIU.

All CDD information (customer identification data, beneficial ownership information).

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.

Outcome: Public awareness campaigns, warnings against the risks of investing in cryptocurrencies, reiterating that they are not legal tender in Fiji. The RBF has consistently highlighted volatility, scams, and lack of consumer protection.

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

No specific license for cryptocurrency custody exists. As cryptocurrencies are not recognized as regulated financial products under the current RBF framework, there is no specific "crypto custodian license."