Crypto-funded debit card in Liberia

Act of the Legislature to Amend and Restate the Act Adopting a New Anti-Money Laundering and Countering the Financing of Terrorism Act of 2012 (AML/CFT Act of 2012, as amended): This is the primary legislation governing AML/CFT in Liberia. It establishes the legal framework for identifying, reporting, and prosecuting money laundering and terrorist financing. While it might not explicitly mention "virtual assets" or "VASPs" by name in its original form, its broad definitions of "funds," "financial institutions," and "designated non-financial businesses and professions" (DNFBPs) are often interpreted to cover virtual asset activities.

Financial Intelligence Unit of Liberia (FIUL) Act: This act establishes the FIUL as the central agency for receiving, analyzing, and disseminating suspicious transaction reports (STRs) and other financial intelligence.

VASP Compliance Requirements:

Registration/Licensing: While specific VASP regulations in Liberia are evolving, the FATF recommendations require VASPs to be licensed or registered.

No specific classification: Stablecoins are not explicitly classified as e-money, payment tokens, or securities under Liberian law.

CBL's General Stance: The Central Bank of Liberia has repeatedly warned that entities operating financial services, including those dealing with digital currencies, must be licensed and regulated by the CBL. However, this general warning highlights the lack of a suitable licensing category for cryptocurrency operations, rather than providing one.

No specific stablecoin issuer license: There is no dedicated licensing regime for stablecoin issuers.

Unlicensed Activity: Operating a stablecoin issuance business in Liberia without specific authorization could fall into a regulatory gray area, potentially being viewed as unauthorized banking or financial services activity depending on its nature and scale.

Not legally guaranteed: Since stablecoins are not regulated and recognized as legal tender or regulated financial instruments, there are no legally guaranteed redemption rights under Liberian law.

The National Payment Systems Act of 2014:

Compliance Requirement for VASPs: VASPs must screen all their customers and transactions against the UN Consolidated Sanctions List (e.g., ISIL (Da'esh) & Al-Qaida Sanctions List, DPRK Sanctions List, etc.) to identify any sanctioned parties or activities.

Compliance Requirement for VASPs: VASPs must screen all their customers and transactions against the UN Consolidated Sanctions List (e.g., ISIL (Da'esh) & Al-Qaida Sanctions List, DPRK Sanctions List, etc.) to identify any sanctioned parties or activities.

Compliance Requirement for VASPs: VASPs must screen all their customers and transactions against the UN Consolidated Sanctions List (e.g., ISIL (Da'esh) & Al-Qaida Sanctions List, DPRK Sanctions List, etc.) to identify any sanctioned parties or activities.

OFAC Guidance on Virtual Currency: https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20210319_ofac_vc_guidance.pdf

U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) Sanctions: While OFAC sanctions are primarily U.S. law, their extraterritorial reach (especially through the U.S. financial system) means that any VASP or financial institution anywhere in the world that engages in transactions involving a U.S. person, U.S. dollar, or U.S. technology must comply. Non-compliance can lead to severe penalties and loss of access to the U.S. financial system.

Services Related to Crypto: Services provided in relation to cryptocurrency (e.g., exchange fees charged by a Liberian-based crypto exchange, consulting services on blockchain technology, transaction processing fees) would likely be subject to GST if the service provider is registered for GST and meets the taxable supply threshold.

Liberia does impose capital gains tax. The general rate for capital gains from the sale of assets (including shares and other non-real estate assets) has historically been around 15% to 20%. However, specific rules can apply depending on the asset type and whether it's an individual or a corporation.