Centralized exchange in North Macedonia

Law on Prevention of Money Laundering and Terrorist Financing

Regulating Authority: Financial Intelligence Unit (FIU) of North Macedonia (Управата за финансиско разузнавање - УФР) is the primary authority for VASP registration and AML/CTF supervision.

Exchanges (Virtual Asset Service Providers - VASP):

Requirement: Mandatory registration with the Financial Intelligence Unit (FIU) under the LPMALTF.

Scope: This applies to platforms facilitating the exchange of virtual assets for fiat currency, or virtual assets for other virtual assets.

Type: AML/CTF registration.

Regulator Name: National Bank of the Republic of North Macedonia (Народна банка на Република Северна Македонија - NBRSM)

NBRSM Official Statement (November 2021): https://www.nbrm.mk/ns-newsarticle-soopstenie_za_javnost-23112021.nspx (Macedonian)

Date: Ongoing, with prominent statements in November 2021 and repeated subsequently.

Adopted: Yes, the FATF Travel Rule (Recommendation 16, as applied to virtual assets) has been adopted in North Macedonia.

Legislation: The primary legislation is the Law on Prevention of Money Laundering and Terrorist Financing (LPPMLTF) (Закон за спречување перење пари и финансирање тероризам).

No De Minimis Threshold for VASP-to-VASP Transfers: Consistent with FATF guidance, for transfers of virtual assets between obliged entities (VASPs), there is generally no de minimis threshold for the required originator and beneficiary information to be transmitted. The full Travel Rule information must be collected and transmitted regardless of the amount.

Originator Information: Name, account number (or unique transaction identifier), physical address, national identity number (or customer identification number), date and place of birth (or legal entity registration number for corporate originators).

Beneficiary Information: Name, account number (or unique transaction identifier).

Transmit Required Information: VASPs must obtain and transmit this information to the beneficiary VASP, or to the beneficiary itself if they are using an unhosted wallet.

Retention: VASPs must retain the collected information for a prescribed period (typically 5-10 years, as per general AML record-keeping rules).

No Specific Technology Mandate: Like most jurisdictions, North Macedonia's law does not mandate a specific technical solution (e.g., TRISA, TRAVELER, Sygna). VASPs are expected to choose and implement a solution that allows them to securely and effectively collect, transmit, and store the required information in a compliant manner. The emphasis is on what information needs to be transmitted, not how it is technically done, as long as it meets security and data protection standards.

Exchanges between virtual assets and fiat currencies.

Exchanges between one or more forms of virtual assets.

Transfers of virtual assets.

Custody and/or administration of virtual assets or instruments enabling control over virtual assets.

Administrative Fines: Substantial monetary fines can be imposed on the VASP (legal entity) and/or responsible individuals within the VASP's management. These fines can vary depending on the severity and recurrence of the breach.

Withdrawal of Licenses/Registrations: Supervisory authorities may suspend or revoke a VASP's license or registration if there are serious or repeated breaches of AML/CFT obligations.

Entity Targeted: General public, financial institutions under NBRSM supervision (banks, savings houses). Violation Type: While not a "violation" in the traditional sense, the NBRSM has consistently warned against the risks associated with cryptocurrencies and explicitly prohibited supervised financial institutions from dealing with them. This sets the regulatory boundary. Penalty Amount: N/A (This is a regulatory warning/stance, not a direct penalty for a specific breach by a regulated entity). Outcome: Heightened public awareness of crypto risks, reinforced prohibition for traditional financial institutions, setting a cautious regulatory tone. The NBRSM maintains that cryptocurrencies are not legal tender and do not fall under its regulatory supervision.

Entity Targeted: Individuals and organized groups operating illegal cryptocurrency mining farms. Violation Type: Theft of electricity, unauthorized connection to the electrical grid, potential charges for tax evasion, and sometimes organized crime. Penalty Amount: Seizure of expensive mining equipment (estimated value often in the hundreds of thousands of Euros), criminal charges, potential imprisonment, and financial penalties for stolen electricity. Specific penalty amounts vary per case and conviction. Outcome: Arrests of individuals, confiscation of mining hardware, disruption of illegal operations, and ongoing criminal proceedings. These actions highlight the MVR's focus on economic crime related to crypto.

Entity Targeted: Individuals and criminal groups involved in online fraud schemes often utilizing cryptocurrencies for payments or as the subject of the scam (e.g., fake investment platforms). Violation Type: Computer fraud, money laundering, organized crime. Penalty Amount: Seizure of assets, criminal charges, potential imprisonment, and restitution if convicted. Specific amounts are often under investigation or determined at conviction. Outcome: Arrests, ongoing investigations, disruption of fraudulent networks. The MVR regularly issues warnings about various online scams, many of which now involve cryptocurrency. While a single "major bust" focusing solely on crypto fraud with a public, finalized penalty within the last 3 years is hard to isolate from ongoing investigations, the MVR's continuous alerts and smaller-scale arrests demonstrate active enforcement.

Outcome: Heightened public awareness of crypto risks, reinforced prohibition for traditional financial institutions, setting a cautious regulatory tone. The NBRSM maintains that cryptocurrencies are not legal tender and do not fall under its regulatory supervision.

Outcome: Arrests of individuals, confiscation of mining hardware, disruption of illegal operations, and ongoing criminal proceedings. These actions highlight the MVR's focus on economic crime related to crypto.