Liberia -- Travel Rule Implementation Regulatory Overview

As of the most recent information, particularly from the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of Liberia published in October 2021, Liberia has significant gaps in its regulatory framework concerning Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), including the implementation of the FATF Travel Rule.

Here's a breakdown:

• Adopted?

  • No, not specifically for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). The 2021 FATF MER explicitly states that Liberia "has not yet assessed its money laundering and terrorist financing risks relating to virtual assets and VASPs, and has not yet put in place the necessary legal or regulatory framework for VAs and VASPs as required by Recommendation 15."
  • This means that the specific requirements of the Travel Rule (FATF Recommendation 16) for VASPs, which mandate the collection and transmission of originator and beneficiary information, have not been adopted into Liberian law or regulation.
  • However, Liberia does have an AML/CTF framework for traditional financial institutions, which includes provisions similar to the Travel Rule for wire transfers (e.g., identification of originator and beneficiary for transfers above certain thresholds, or all transfers for FIs). This framework, however, does not extend to VASPs.

• Effective Date:

  • Since the Travel Rule for VAs/VASPs has not been adopted, there is no specific effective date for its implementation in Liberia.

• Threshold Amounts:

  • For VASPs, no specific threshold amounts are applicable as the regulatory framework for them is absent.
  • For traditional financial institutions, the Anti-Money Laundering and Terrorist Financing Act of 2012 (as amended) and related regulations from the Central Bank of Liberia (CBL) would outline thresholds for reporting and information collection related to wire transfers. However, the FATF Travel Rule (R.16) for wire transfers generally requires originator and beneficiary information for all transfers by covered entities, with no de minimis threshold.

• Which VASPs are Covered:

  • No specific category of VASPs is currently covered by AML/CTF obligations or Travel Rule requirements in Liberia, due to the lack of a comprehensive legal and regulatory framework for VAs/VASPs. The FATF MER highlights that Liberia has not identified or licensed any VASPs operating in its jurisdiction, nor has it applied AML/CTF requirements to them.

• Technical Implementation Requirements:

  • Since there's no legal or regulatory framework for VAs/VASPs or the Travel Rule, there are no defined technical implementation requirements for VASPs in Liberia.

• Penalties for Non-Compliance:

  • No specific penalties for non-compliance with the Travel Rule for VASPs exist, as the framework itself is not in place.
  • However, Liberia's Anti-Money Laundering and Terrorist Financing Act of 2012 (as amended) and other relevant financial laws provide for penalties for general AML/CTF non-compliance by regulated financial institutions. If any entity were operating as a VASP and engaging in activities that could be interpreted under existing laws (e.g., unauthorized financial services), they could potentially face penalties under those broader statutes.

Referenced Legislation and Guidance:

1. FATF Mutual Evaluation Report of Liberia (October 2021):

   • This is the primary source for understanding Liberia's current AML/CTF framework and its gaps, especially concerning Virtual Assets and VASPs.
   • URL: https://www.fatf-gafi.org/content/fatf-gafi/en/publications/Mutualevaluations/MER-Liberia-2021.html
   • Key sections to review: Executive Summary, Section 3 (Legal Framework), and specifically Recommendations 15 and 16, as well as the assessment of Immediate Outcome 7 (ML/TF risks from VAs).

2. The Anti-Money Laundering and Terrorist Financing Act of 2012 (as amended):

   • This is Liberia's primary AML/CTF legislation. While it predates the explicit FATF guidance on VAs/VASPs, it forms the general legal basis for AML/CTF in the country for traditional financial institutions.
   • Finding a direct, publicly accessible URL for the most current amended version can be challenging. It's often referenced in official government documents and the FATF MER. You may find copies via legal databases or the Central Bank of Liberia's publications if they host it.
   • Central Bank of Liberia (CBL) Website: The CBL is the primary regulator for financial institutions and would issue any related guidance or regulations.
     • URL: https://www.cbl.org.lr/ (You would typically navigate to their "Publications" or "Regulations" section to look for AML/CTF documents.)

In summary, while Liberia has an existing AML/CTF framework for traditional finance, the FATF Travel Rule for Virtual Assets and VASPs is not yet implemented or enforceable due to the absence of specific legislation or regulations addressing virtual assets. This remains a significant area for improvement as identified by the FATF.