Comoros -- Licensing Requirements Regulatory Overview

**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.