On-shore VASP in Monaco

Exchanges (Virtual Asset Service Providers - VASP):

Requirement: Registration with SICCFIN for AML/CFT purposes.

Scope: This applies to platforms facilitating the exchange between virtual assets and fiat currencies, and between one or more forms of virtual assets.

Custody Providers (Virtual Asset Service Providers - VASP):

Scope: This includes entities that provide safekeeping or administration of virtual assets or instruments enabling control over virtual assets (e.g., private keys) on behalf of clients.

A local entity (e.g., a Monégasque company) is generally required to operate as a VASP in Monaco.

The entity must have a physical presence, management, and operational substance within the Principality.

For pure AML/CFT registration with SICCFIN, there are generally no specific prescribed minimum capital requirements directly stemming from the AML law itself for VASPs, unlike for CCAF-regulated entities.

However, the entity must demonstrate financial solvency and sufficient resources to operate its business responsibly and comply with its obligations. If a CCAF license is also required for certain activities, then specific capital requirements will apply for those licensed activities.

Fit & Proper Requirements:

Management and key personnel of the VASP must demonstrate competence, integrity, and good repute.

Shareholders and beneficial owners are also subject to scrutiny.

Customer Due Diligence (CDD): Implementing robust procedures for identifying and verifying the identity of clients (Know Your Customer - KYC), including beneficial owners, and understanding the purpose and intended nature of the business relationship.

Ongoing Monitoring: Continuous monitoring of business relationships and transactions to ensure consistency with the institution's knowledge of the customer and their risk profile.

Record-Keeping: Maintaining records of customer identification data, transactions, and risk assessments for a specified period (typically 5-10 years).

Suspicious Transaction Reporting (STR): Establishing internal procedures for identifying and reporting suspicious transactions to SICCFIN.

Risk Assessment: Implementing a comprehensive, risk-based approach to AML/CFT, including institutional risk assessments and client risk profiling.

Internal Controls: Developing and implementing internal AML/CFT policies, procedures, and controls, including the appointment of an AML/CFT Compliance Officer.

If handling traditional fiat payments (e.g., processing card payments, traditional money remittance): These activities fall under existing payment services regulations. Depending on the exact nature, a license or authorization from the CCAF might be required if the activity constitutes a regulated financial service.

CCAF (Commission de Contrôle des Activités Financières): The financial markets supervisory authority in Monaco. While not directly responsible for "crypto licenses" in the broader sense, the CCAF would be involved if a virtual asset activity falls under the scope of existing regulated financial services (e.g., if a crypto asset is deemed a security, or if investment advice related to crypto is provided).

Loi n° 1.362 du 3 août 2009 relative à la lutte contre le blanchiment de capitaux, le financement du terrorisme et la corruption (consolidated version often available through legal databases): Access via Journal de Monaco – search for "Loi 1.362" and its modifications for the most up-to-date text

Ordonnance Souveraine n° 8.182 du 10 mars 2021 portant modification de l'ordonnance souveraine n° 2.318 du 3 août 2009 d'application de la loi n° 1.362 du 3 août 2009 modifiée, relative à la lutte contre le blanchiment de capitaux, le financement du terrorisme et la corruption, modifiée (Sovereign Ordinance No. 8.182 of March 10, 2021 amending Sovereign Ordinance No. 2.318 of August 3, 2009 implementing Law No. 1.362 of August 3, 2009, as amended, on the fight against money laundering, terrorist financing, and corruption)

Identification and Verification of the Client:

Identification of the Beneficial Owner (BO):

Ongoing Monitoring of the Business Relationship:

Enhanced Due Diligence (EDD):

When Required: In situations presenting a higher risk of money laundering or terrorist financing. This includes, but is not limited to:

Non-Face-to-Face Relationships: Enhanced measures are required to mitigate the higher risk associated with non-face-to-face onboarding.

Evidence fact mc.aml.monaco-is-itself-identified-as-a not found (may have been renamed).