Remote VASP serving residents 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.

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).

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.

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:

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.

Types of Records:

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.

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."

No specific rules for cryptocurrency asset segregation exist. Since there is no specific regulatory framework for crypto custody, there are no mandates for how client digital assets should be segregated from the custodian's proprietary assets.

No specific insurance or bonding requirements for cryptocurrency custodians exist. Given the absence of a dedicated framework, there are no mandates for custodians to carry specific insurance policies or bonding to cover potential losses due to hacks, fraud, or operational failures.

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).

Regulated Markets: Trading would ideally need to occur on a licensed securities exchange or a regulated platform. Fiji's existing stock exchange (South Pacific Stock Exchange) or a future RBF-licensed entity would be the only legal avenues for trading.

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.

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.

Pure Payment Tokens/Cryptocurrencies (e.g., Bitcoin, Ethereum): While the RBF does not recognise them as legal tender, if they are primarily used as a medium of exchange and not offered as an investment scheme by an issuer, they are less likely to be considered securities. However, platforms facilitating their trading would still fall under AML/CFT regulations.

Date: Ongoing, with repeated statements over the years. Specific advisories in 2021, 2022, 2023.

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

Evidence fact fj.enforcement.rbf-statement-2023 not found (may have been renamed).

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

Entity Targeted: General Public / Potential Investors. Violation Type: N/A (Preventative advisory, not an enforcement action). Penalty Amount: N/A.