Comoros -- Travel Rule Implementation Regulatory Overview

Pinpointing the exact, granular details of FATF Travel Rule implementation for virtual assets (VAs) and virtual asset service providers (VASPs) in smaller jurisdictions like Comoros can be challenging, as specific regulations may be nascent, incorporated into broader AML/CFT frameworks, or not widely publicized in readily accessible English documentation.

However, based on Comoros's membership in the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), a FATF-style regional body, and its commitment to FATF standards, we can infer its general approach.

Here's an assessment based on available information:

1. Whether Adopted:

   • 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.

2. Effective Date:

   • 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.

3. Threshold Amounts:

   • 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.

4. Which VASPs Are Covered:

   • 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.
     • Transfers 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.

5. Technical Implementation Requirements:

   • 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.

6. Penalties for Non-Compliance:

   • The Anti-Money Laundering and Counter-Terrorist Financing Law No. 19-026/AU of 2019 would outline general penalties for non-compliance with AML/CFT obligations. These typically include:
     • 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.

References and Further Information:

• 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.
  • ESAAMLG Website: https://www.esaamlg.org/
  • You can typically find country-specific reports under the "Reports" or "Mutual Evaluations" sections. While the main Comoros MER pre-dates the 2019 FATF guidance, subsequent follow-up reports might refer to progress on VASP regulation.
• FATF Guidance:
  • Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (June 2019 & updated): This document outlines the FATF's expectations for VA/VASP regulation, including the Travel Rule.
    • URL: https://www.fatf-gafi.org/content/fatf-gafi/en/publications/Fatfrecommendations/Guidance-RBA-virtual-assets.html

Conclusion:

Comoros is in a position where its foundational AML/CFT law (2019) provides the legal basis for regulating VASPs and implementing the Travel Rule. However, specific, detailed regulations solely focused on VAs and explicit Travel Rule obligations might still be developing or not publicly available in a consolidated format. VASPs operating in Comoros should assume that FATF standards, including the Travel Rule's data collection and transmission requirements at the USD/EUR 1,000 threshold, are applicable under the existing AML/CFT framework, and should monitor for any specific implementing regulations that may emerge.