Comoros

**Anjouan Offshore Finance Authority (AOFA):** This is the primary authority responsible for licensing offshore financial services, including what are often adapted for cryptocurrency businesses.

**Central Bank of Comoros (Banque Centrale des Comores - BCC):** While the BCC oversees traditional financial institutions and monetary policy for the entire Union of the Comoros, it generally has less direct specific oversight or licensing for offshore virtual asset activities compared to AOFA.

**Ministry of Finance:** Holds general oversight over financial matters.

**Specific Crypto Law vs. General Financial Services License:**

The Union of the Comoros does **not** have a dedicated, comprehensive law specifically for virtual assets or cryptocurrencies akin to those in major financial hubs.

Instead, virtual asset businesses seeking to operate from Comoros (via Anjouan) typically apply for a **general financial services license** or a **Money Service Business (MSB) license** under the AOFA framework. These licenses are then interpreted and adapted to cover crypto-related activities.

**Required Licenses for Specific Providers (via AOFA):**

**Exchanges (Spot, Derivatives):** Would typically require an AOFA Financial Services License or MSB license. This allows for the facilitation of transactions, trading, and conversion of virtual assets.

**Custody Providers:** Would also fall under the broader Financial Services License, as they manage and secure virtual assets on behalf of clients. Specific conditions regarding security, insurance, and segregation of assets might be imposed.

**Payment Processors (Fiat-to-Crypto, Crypto-to-Fiat, Crypto-only):** An MSB license is the most common route for these entities, as they facilitate money transfers and currency exchange, which crypto payments are increasingly seen to represent.

Businesses must formally apply for a license.

They must meet specific criteria and undergo due diligence by the AOFA.

Licenses are granted after approval, requiring ongoing compliance to maintain validity.

The capital requirement is typically **modest** compared to many other jurisdictions. For a general Financial Services or MSB license from AOFA, the minimum paid-up capital requirement can be around **USD 10,000 to USD 50,000**, though this can vary. It's often required to be deposited in a local bank account or an account approved by the AOFA.

**Comoros is currently on the FATF (Financial Action Task Force) "grey list"** (Jurisdictions under increased monitoring). This means it is actively working with the FATF to address strategic deficiencies in its AML/CFT regimes.

Despite this, licensed entities under AOFA are required to implement robust Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and procedures, including:

**Customer Due Diligence (CDD):** Verification of identity for all clients (individuals and corporate).

**Enhanced Due Diligence (EDD):** For high-risk clients or transactions.

**Monitoring:** Ongoing monitoring of transactions for suspicious activities.

**Reporting:** Reporting of suspicious transactions (STRs) to the local Financial Intelligence Unit (FIU), which is likely the National Financial Intelligence Processing Unit (Unité Nationale de Traitement des Renseignements Financiers - UNTRF).

**Compliance Officer:** Appointment of a qualified AML/CFT Compliance Officer.

**Record Keeping:** Maintaining records of transactions and client identification for a prescribed period.

**Registered Office:** All licensed entities must have a registered office address in Anjouan.

**Local Agent/Representative:** It's common to require a local registered agent or representative who acts as a liaison with the AOFA.

**Physical Presence/Staff:** While a full physical office with local staff isn't always strictly mandated for the offshore structures, having an operational substance plan is increasingly important for reputational and compliance purposes.

**Company Formation:** Establishment of an International Business Company (IBC) or similar legal entity in Anjouan.

**Business Plan:** A detailed business plan outlining operations, target markets, technology, risk management, and compliance strategies.

**Fit and Proper Test:** Directors, shareholders, and key personnel must pass a "fit and proper" test, demonstrating their good repute, competence, and financial soundness.

**Technology & Security:** Evidence of robust IT infrastructure and security measures to protect customer data and assets.

**Audit Requirements:** Annual audited financial statements are usually required.

**Company Formation:** Register an International Business Company (IBC) or equivalent legal entity with the Anjouan Registrar of Companies.

**Preparation of Documentation:** Compile all required documents, including:

AML/KYC policies and procedures manual.

Biographical data (CVs, police clearance, bank references, professional references) for all directors, shareholders, and key personnel.

Proof of funds for capital requirements.

Technology audit or security assessment reports.

Organizational charts and governance structures.

Application forms provided by AOFA.

**Submission of Application:** Lodge the complete application package with the Anjouan Offshore Finance Authority (AOFA).

**Due Diligence and Review:** The AOFA will review the application, conduct due diligence on the company and its principals, and may request additional information or clarifications.

**Interview (Optional):** Key personnel might be invited for an interview.

**Approval and Licensing:** Upon satisfactory review and fulfillment of all conditions, the AOFA will issue the financial services or MSB license.

**Ongoing Compliance:** Maintain compliance with all regulatory requirements, including periodic reporting and audits.

**Anjouan Offshore Finance Authority (AOFA):**

A direct official, active website for AOFA with comprehensive laws and regulations is often difficult to pinpoint. Searches for "Anjouan Offshore Finance Authority" will lead to various service providers offering licensing services.

*Search Term Suggestion:* You would typically find references to the AOFA through corporate service providers or legal firms specializing in offshore finance in the region.

*Note:* While the BCC is the central monetary authority, its direct role in specific virtual asset licensing via Anjouan is limited. However, it sets broader financial regulations.

**Financial Action Task Force (FATF) - Comoros' Status:**

Information on Comoros' status on the FATF grey list can be found on the official FATF website. This is crucial for understanding the international perception and compliance burden.

Search for "Jurisdictions under increased monitoring" and look for Comoros.

**National Financial Intelligence Processing Unit (UNTRF):**

The FIU of Comoros, responsible for receiving and analyzing suspicious transaction reports. Its specific website might be embedded within the Ministry of Finance or Central Bank portals if a standalone site isn't present.

**Reputation:** Due to Comoros' FATF grey-list status and the offshore nature of Anjouan licensing, obtaining banking relationships for a Comoros-licensed crypto entity can be challenging. International banks often de-risk jurisdictions with perceived higher AML/CFT risks.

**Legal Advice:** Given the complexities and the lack of a dedicated crypto law, it is highly advisable to seek legal counsel from firms specializing in Comorian offshore finance and cryptocurrency regulations before proceeding with any application.

**Evolving Landscape:** Cryptocurrency regulations are rapidly evolving globally. What is current today might change in the near future.

**Regulatory Approach:** **Partial, moving towards a licensing-based regulation.** Comoros has not implemented a comprehensive, broad regulatory framework covering all aspects of blockchain or digital assets. However, it has moved to regulate key activities related to virtual assets, particularly those performed by VASPs, requiring them to be licensed. This is a significant shift from a previous lack of specific regulation, or a generally restrictive environment for unsanctioned crypto activities.

**Ministry of Finance:** Likely involved in the policy and legislative development.

**Key Legislation Names and Dates:**

**Virtual Asset Service Providers (VASP) Act, 2023:** This is the most significant piece of legislation. It aims to establish a regulatory and licensing framework for entities dealing with virtual assets in the Union of Comoros. While specific details can be elusive for smaller jurisdictions, this Act is reported to designate the Central Bank of Comoros as the primary supervisory authority for VASPs. It likely covers aspects such as licensing requirements, anti-money laundering (AML) and combating the financing of terrorism (CFT) obligations, and consumer protection.

**URL:** Official gazette publications for Comoros are not always readily available online in easily searchable formats. Information about the VASP Act often comes from legal updates or news sources citing the BCC's new powers. A direct, official government URL for the full text of the Act is difficult to pinpoint publicly.

**Central Bank of Comoros Website:** http://www.banquecentrale.km/ (While not linking directly to the Act, this is the official body responsible).

**Current Stance on Crypto Trading and Exchanges:**

**Regulated and Permitted under License:** The VASP Act of 2023 signifies that crypto trading and the operation of crypto exchanges (and other virtual asset services) are **no longer implicitly banned or operating in a legal vacuum**. Instead, they are now **subject to a licensing regime** enforced by the Central Bank of Comoros.

Entities wishing to operate as virtual asset service providers (e.g., exchanges facilitating trading, custodians, issuers of virtual assets) are expected to apply for and obtain a license from the BCC.

**Unlicensed operations are likely illegal** and subject to penalties under the new framework. This move aims to bring greater oversight, combat illicit financial activities, and potentially attract legitimate digital asset businesses to operate under a regulated environment.

**Ordinance No. 19-001/PR of 26 July 2019 on the Fight Against Money Laundering and Terrorist Financing:** This is the most recent foundational AML/CFT law in Comoros. It replaced previous legislation (like Law No. 11-002/AF of 29 March 2011) and aims to align the Comorian framework with international standards set by FATF.

*Note:* While this Ordinance may not explicitly name "virtual assets" or "cryptocurrency," the broad definitions of "financial activity," "financial institutions," and "designated non-financial businesses and professions (DNFBPs)" are generally interpreted to encompass activities related to virtual assets and VASPs, especially given FATF Recommendation 15.

**Be subject to licensing or registration:** Depending on the specific interpretation and future regulations, VASPs are expected to be licensed or registered by the relevant authorities (e.g., the Central Bank).

**Implement AML/CFT requirements:** VASPs must comply with all AML/CFT obligations applicable to financial institutions, including customer due diligence, record-keeping, and suspicious transaction reporting.

**For natural persons:** Obtain and verify the customer's identity using reliable, independent source documents, data, or information (e.g., full name, address, date and place of birth, nationality, unique identification number from an official document like a passport or national ID card).

**For legal entities:** Obtain and verify the identity of the legal entity (e.g., name, legal form, address, directors, beneficial owners, proof of incorporation). Understand the ownership and control structure.

**Beneficial Ownership:** Identify and take reasonable measures to verify the identity of the beneficial owner(s) of the customer, including for legal persons and arrangements.

**Purpose and Intended Nature of Business Relationship:** Understand the purpose and intended nature of the business relationship or occasional transaction.

**Ongoing Monitoring:** Conduct ongoing due diligence on the business relationship and scrutinize transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the obliged entity's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.

**Enhanced Due Diligence (EDD):** Apply EDD measures to higher-risk situations, which may include:

Transactions involving complex or unusually large amounts.

Transactions involving new technologies and products (e.g., certain virtual assets).

**Source of Funds/Wealth:** For high-risk clients or transactions, VASPs should take reasonable measures to establish the source of funds or source of wealth.

**Obligation to Report:** VASPs are obligated to report any transaction (or attempted transaction), regardless of the amount, where there are reasonable grounds to suspect that the funds are the proceeds of a crime or are related to terrorist financing.

**Reporting Authority:** All STRs must be submitted to the **National Financial Information Processing Unit (Cellule Nationale de Traitement des Informations Financières - CNTIF)**, which is Comoros' Financial Intelligence Unit (FIU).

**No Tipping-Off:** VASPs and their employees are prohibited from disclosing to the customer or to third parties that an STR has been filed or that an investigation is underway.

**Customer Identification Data:** All documents and information used for CDD, including verification records.

**Account Files:** Records related to customer accounts and business relationships.

**Business Correspondence:** Relevant correspondence with customers.

**Transaction Records:** Records of all transactions (date, type, amount, currency, parties involved, payment methods, digital wallet addresses, transaction hashes).

**STRs and Internal Reports:** Copies of all STRs filed and any internal reports related to suspicious activities.

**Appoint an AML Compliance Officer:** A designated person responsible for overseeing the implementation of AML/CFT policies and procedures.

**Develop Internal Policies and Procedures:** Establish comprehensive internal policies, procedures, and controls to mitigate ML/TF risks, including risk assessment methodologies.

**Employee Training:** Provide ongoing AML/CFT training to relevant employees to ensure they understand their obligations and can identify suspicious activities.

**Independent Audit:** Implement an independent audit function to test the effectiveness of their AML/CFT programs.

**Central Bank of Comoros (Banque Centrale des Comores - BCC) Regulations:** The BCC may issue circulars or regulations that further elaborate on AML/CFT obligations for financial service providers, which could be extended to VASPs.

**Role:** The BCC is the main financial sector regulator and supervisor. It is responsible for licensing, prudential supervision, and ensuring compliance with AML/CFT regulations for entities under its purview, which would include VASPs once formally recognized and regulated.

**National Financial Information Processing Unit (Cellule Nationale de Traitement des Informations Financières - CNTIF):**

**Role:** This is Comoros' Financial Intelligence Unit (FIU). The CNTIF is the central national authority for receiving, analyzing, and disseminating financial intelligence concerning suspected proceeds of crime and terrorist financing. VASPs must report all suspicious transactions to the CNTIF.

**URL:** A dedicated official website for CNTIF is not readily available or publicly published, but it operates under the Ministry of Finance. Information about its operations is usually found via government portals or reports from international bodies like ESAAMLG.

**Law N° 08-013/AF of 2008 on Anti-Money Laundering and Combating the Financing of Terrorism:** This is the foundational AML/CFT law in Comoros, based on FATF recommendations. It mandates financial institutions (which would likely encompass regulated VASPs) to implement customer due diligence, suspicious transaction reporting, and compliance with international sanctions.

*Note:* While finding the direct URL for the specific, most recent version of this law in English from a Comorian government source can be challenging, its existence and purpose are consistently referenced by international bodies like the IMF and ESAAMLG.

**Reference (ESAAMLG mentioning Comoros' framework):** https://www.esaamlg.org/index.php/member-countries/comoros (Comoros is a member of the Eastern and Southern Africa Anti-Money Laundering Group).

**BCC Website:** https://www.banquecentrale.km/ (Check for official publications under "Publications" or "Textes Législatifs et Réglementaires").

**Cellule Nationale de Traitement des Informations Financières (CENTIF) - National Financial Information Processing Unit:** This is Comoros' Financial Intelligence Unit (FIU). It is responsible for receiving, analyzing, and disseminating suspicious transaction reports (STRs) and other financial intelligence related to money laundering and terrorist financing.

VASPs (if covered by the AML/CFT law) would be obligated to report suspicious transactions, including those related to sanctions violations, to CENTIF.

**Yes, in principle, likely adopted as part of broader AML/CFT framework.** Comoros is an ESAAMLG member and is committed to implementing the FATF Recommendations. The FATF updated its Recommendations (specifically Recommendation 15 and 16, which underpin the Travel Rule) in June 2019 to explicitly cover VAs and VASPs.

Comoros enacted a new **Anti-Money Laundering and Counter-Terrorist Financing Law (Law No. 19-026/AU)** on **December 26, 2019**. This law is designed to align Comoros's AML/CFT framework with international standards, including FATF recommendations. It is highly probable that this law, or subsequent regulations under it, provides the legal basis for regulating VASPs and implementing the Travel Rule.

**Specific VASP-focused legislation and explicit Travel Rule mandates are harder to locate publicly.** Many jurisdictions pass a general AML/CFT law first and then issue detailed implementing regulations for specific sectors (like VAs) later.

The **Anti-Money Laundering and Counter-Terrorist Financing Law No. 19-026/AU** came into effect shortly after its promulgation in **December 2019**. This would be the *general* effective date for the overarching AML/CFT framework.

The *specific* effective date for obligations pertaining directly to the Travel Rule for VASPs would depend on the issuance of any dedicated VASP regulations or guidance, which are not readily available in public records.

Assuming Comoros aligns with the FATF standard for the Travel Rule (Recommendation 16), the threshold amount for collecting and transmitting originator and beneficiary information for VA transfers is:

**USD/EUR 1,000** or more (for transfers where the ordering VASP or beneficiary VASP is a financial institution).

**USD/EUR 0** (meaning all transactions, for transfers where *both* the ordering and beneficiary VASPs are not financial institutions, or where one side is an unhosted wallet). Many jurisdictions, however, focus on the USD/EUR 1,000 threshold initially.

Without specific Comorian VASP regulations, the FATF standard is the most likely reference.

Comoros is expected to adhere to the FATF definition of VASPs, which includes:

Exchanges between VAs and fiat currencies.

Exchanges between one or more forms of VAs.

Safekeeping and/or administration of VAs or instruments enabling control over VAs (custodian wallet providers).

Participation in and provision of financial services related to an issuer’s offer and/or sale of a VA.

Any entity conducting these activities as a business for or on behalf of another person would likely be subject to regulation.

The FATF does not prescribe a specific technical solution for Travel Rule compliance. It requires that the necessary originator and beneficiary information be collected, held, and transmitted between VASPs.

Comoros is unlikely to have issued specific technical requirements beyond the general obligation to comply with the Travel Rule's data transmission requirements. VASPs operating in Comoros would likely need to adopt an industry-standard technical solution (e.g., using TRISA, OpenVASP, Sygna, Travel Rule Protocol, etc.) to meet these obligations, much like in other jurisdictions.

**Fines:** Significant monetary penalties for institutions and individuals.

**Imprisonment:** For individuals found guilty of serious AML/CFT breaches.

**Suspension or Revocation of Licenses:** For regulated entities.

**Reputational Damage:** Though not a legal penalty, non-compliance can severely impact an entity's ability to operate.

The specific scale of penalties for VASP-related non-compliance would depend on detailed regulations, but they would generally align with those for other financial institutions.

**Anti-Money Laundering and Counter-Terrorist Financing Law No. 19-026/AU of December 26, 2019 (Comoros):** While a direct English or French version with a public URL is difficult to find, its existence and purpose are referenced in ESAAMLG documents and other legal analyses. It forms the backbone of Comoros's current AML/CFT framework.

**Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG):** Comoros is a member. ESAAMLG provides Mutual Evaluation Reports and follow-up reports that assess member states' compliance with FATF Recommendations.

**Overall Regulatory Landscape:** The primary financial regulator in Comoros is the **Banque Centrale des Comores (BCC)**, which oversees traditional banking and financial services. Comoros is also a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), indicating a commitment to international AML/CFT standards. However, these standards typically recommend, rather than mandate, specific digital asset custody rules for individual member states unless adopted into national law.

**None Specific:** There are no specific licensing requirements for cryptocurrency custodians in Comoros as there is no specific legal definition or framework for such entities. Entities operating in the crypto space would likely fall into an unregulated category or might be subject to existing general financial services laws if their activities could be broadly interpreted as such (though this is unlikely for pure crypto custody without specific legal amendments).

**Segregation of Client Assets Rules:**

**None Specific for Digital Assets:** Since there are no specific custody laws, there are no explicit rules mandating the segregation of client digital assets from a custodian's proprietary assets. Traditional financial institutions under BCC oversight are subject to segregation rules for fiat currencies and securities, but these do not extend to digital assets without specific legislation.

**None Specific:** There are no specific insurance or bonding requirements for digital asset custodians.

**None:** There are no specific mandates or requirements for the use of cold storage or any particular security measures for digital assets.

**None:** There is no legal definition of a "qualified custodian" in the context of digital assets within Comorian law.

**No Public Information:** There is no publicly available information suggesting that specific legislation for digital asset custody is currently pending or under active consideration in Comoros.

**Banque Centrale des Comores (BCC):** The central bank is the primary financial regulator. Its website contains general laws and regulations pertaining to banking and finance, but no specific crypto provisions.

**URL:** https://www.banquecentrale.km/ (Primarily in French)

You would typically find texts réglementaires (regulatory texts) here, but without specific crypto laws, they won't address custody.

**Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Framework:** Comoros has AML/CFT legislation, such as **Law No. 11-001/AU on combating money laundering and terrorist financing** (and subsequent amendments). This law would likely apply to any financial activity, but it does not specifically define or regulate virtual asset service providers (VASPs) or custody activities.

**Reference:** While a direct public URL for the latest consolidated AML/CFT law is hard to find in English, its existence is noted by international bodies.

**ESAAMLG:** Comoros is a member of the Eastern and Southern Africa Anti-Money Laundering Group. ESAAMLG mutual evaluation reports sometimes touch on a country's readiness to regulate VASPs, but this reflects recommendations rather than implemented national laws.

**URL (ESAAMLG General Site):** https://www.esaamlg.org/

**Requirements:** Comoros is obligated to implement all UN Security Council Resolutions, which include asset freezes, travel bans, and arms embargoes against individuals, entities, and countries designated by various UN sanctions committees (e.g., Al-Qaida, ISIS, Taliban, DPRK, Iran, etc.).

**VASP Obligations:** VASPs in Comoros must:

Screen all customers (KYC/CDD) and transactions against the UN Consolidated Sanctions List.

Freeze virtual assets and funds of designated persons and entities without delay.

Prohibit making virtual assets, funds, or economic resources available to sanctioned parties.

Report any matches or suspicious activities to the relevant Comorian authorities (e.g., CENTIF).

**Legal Reference:** UN Security Council Resolutions (e.g., UNSCR 1267, 1373, 1718, etc.) are binding on all UN member states.

**Requirements:** OFAC sanctions apply to:

U.S. persons wherever they are located (U.S. citizens, permanent residents, entities incorporated in the U.S., and their foreign branches).

All transactions touching the U.S. financial system or involving U.S. dollar clearing.

Transactions with Specially Designated Nationals (SDNs) and Blocked Persons, regardless of the currency or location.

**VASP Obligations:** Any VASP in Comoros dealing with U.S. persons, U.S. dollars, or facilitating transactions that route through the U.S. financial system, or dealing with global crypto platforms that have U.S. nexus, must:

Screen all customers and transactions against the SDN List and other OFAC sanctions lists.

Block (freeze) virtual assets of SDNs and other sanctioned persons/entities and report the blocking to OFAC.

Reject (prohibit) transactions that violate OFAC sanctions and report them.

Implement robust geo-blocking measures for sanctioned jurisdictions.

**Legal Reference:** Various U.S. Executive Orders and statutory authorities.

**OFAC Virtual Currency Guidance:** https://ofac.treasury.gov/media/13217/download?inline

**Requirements:** EU sanctions apply to:

EU nationals wherever they are located.

Entities incorporated or constituted under the law of an EU Member State.

Economic activities carried out in whole or in part within the territory of the EU.

**VASP Obligations:** If a VASP in Comoros has any connection to the EU (e.g., EU-based customers, partners, or uses EU-based service providers), it must:

Screen customers and transactions against the EU Consolidated Sanctions List.

Freeze assets of designated persons/entities and report to relevant EU national competent authorities.

Comply with any specific prohibitions (e.g., restrictions on services to certain entities or regions).

**Legal Reference:** Various EU Regulations and Decisions.

**EU Sanctions Map (Consolidated List):** https://sanctions-map.eu/