Custodial wallet / SaaS in Guinea-Bissau

No Specific Requirements: There are no specific laws or regulations in Guinea-Bissau that define or require a "cryptocurrency custodial license."

Implication of BCEAO Stance: Any entity seeking to offer financial services, including what might be construed as digital asset custody, would generally need a license from the BCEAO and/or national financial authorities. However, the BCEAO's stance against recognizing cryptocurrencies means that such a license specifically for crypto custody is not available or granted. Unlicensed provision of financial services is generally illegal.

No Specific Rules: Since there is no specific regulatory framework for digital asset custody, there are no explicit rules in Guinea-Bissau mandating the segregation of client digital assets from the custodian's proprietary assets.

No Specific Mandates: There are no specific regulatory mandates for the use of cold storage or other security measures for digital assets under custody.

No Specific Definition: Guinea-Bissau's legal and regulatory framework does not currently define what constitutes a "qualified custodian" in the context of digital assets.

Absence of Specific Crypto Laws: There are no explicit laws or regulations defining virtual assets, outlining VASP licensing categories, setting specific capital requirements for crypto firms, or mandating a particular application process for crypto businesses.

Central Bank Stance: Like many central banks in the absence of specific legislation, the Banco Central da Guiné-Bissau (Central Bank of Guinea-Bissau) is more likely to have issued warnings regarding the risks associated with cryptocurrencies rather than establishing a regulatory framework for them. These warnings typically highlight price volatility, lack of consumer protection, and potential for illicit use. (Unfortunately, direct links to specific public warnings are often hard to find without deep local search capabilities in Portuguese).

None Specifically for Crypto: There are no specific "Virtual Asset Exchange License," "Crypto Custody License," or "Crypto Payment Processor License" available or required in Guinea-Bissau.

Traditional Financial Licenses (Potential Overlap/Future): If a VASP's activities were deemed to fall under the scope of traditional financial services (e.g., money remittance, e-money issuance, or general financial intermediation), then relevant licenses for those traditional activities might be required. However, without specific legal clarity on how virtual assets are classified in relation to existing financial laws, this remains ambiguous. It's more likely that traditional financial services licenses would not implicitly cover virtual asset activities without explicit legislative amendment.

AML/KYC: This is the most likely area where some implicit obligation might arise. Guinea-Bissau is a member of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), an FATF-style regional body. This means it is committed to implementing FATF Recommendations, including Recommendation 15 on New Technologies, which requires countries to regulate Virtual Asset Service Providers (VASPs) for AML/CFT purposes.

Current Situation: While Guinea-Bissau has general Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws, it's not clear whether these laws explicitly designate VASPs as "reporting entities" or "financial institutions" that must adhere to AML/KYC obligations (e.g., customer due diligence, suspicious transaction reporting).

Law No. 7/2014 of 30th May 2014 on the Prevention and Combat of Money Laundering and Terrorist Financing: This is the overarching national AML/CFT law. It defines reporting entities, establishes the Financial Intelligence Unit (FIU), and outlines general obligations.

Presidential Decree No. 17/2015 of 27th May 2015: This decree further regulates and implements Law No. 7/2014, providing more detailed provisions for its application.

UEMOA Directive No. 003/2021/CM/UEMOA relating to the fight against money laundering and terrorist financing in the UEMOA Member States: This critical regional directive, adopted in 2021, incorporates the revised FATF Recommendations, including specific provisions for virtual assets (FATF Recommendation 15). It mandates member states (including Guinea-Bissau) to apply AML/CFT measures to VASPs and to supervise or monitor them. National legislation and regulations are expected to be updated to reflect this directive.

Identification and Verification:

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

Conducting ongoing monitoring of the business relationship, including scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the VASP’s knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.

Risk-Based Approach: Applying CDD measures based on a risk assessment. This means:

Report Suspicious Transactions: Report any transaction (or attempted transaction), regardless of its amount, that they suspect may involve money laundering or terrorist financing. This includes transactions related to virtual assets.

No Tipping-Off: Prohibit the disclosure to the customer or any third party that an STR has been or will be filed.

Unidade de Informação Financeira (UIF) - Financial Intelligence Unit of Guinea-Bissau:

Transaction Data: All records necessary to reconstruct individual transactions, including amounts, currencies, dates, and parties involved. This includes sender and recipient information for virtual asset transfers (often referred to as the "Travel Rule" information, even if specific VASP regulations are still developing).

FATF Influence: As a member of the global community, Guinea-Bissau is expected to adhere to the recommendations of the Financial Action Task Force (FATF) regarding Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). This includes regulations for AML/CFT for crypto businesses, which implicitly covers entities involved in custody. However, implementing these recommendations into national law for specific licensing and operational requirements for custody is a distinct step that has not yet occurred.

Local Presence: Any company operating in Guinea-Bissau would generally require a registered local office and compliance with local business registration requirements.

Compliance with General Business Laws: Businesses must still comply with all general company, tax, and labor laws.