Mali -- Travel Rule Implementation Regulatory Overview

The implementation of the FATF Travel Rule in Mali is currently in a nascent stage, with a recognized gap in specific legislation targeting Virtual Asset Service Providers (VASPs) and virtual assets. While Mali has a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) framework, it has not yet specifically transposed the FATF's updated Recommendation 15 regarding virtual assets and VASPs, including the Travel Rule, into national law.

Here's a breakdown based on available information:

Status of FATF Travel Rule Implementation in Mali

• Whether Adopted:

  • Mali has a general AML/CFT law, Loi n°2019-005 du 25 février 2019 relative à la lutte contre le blanchiment de capitaux et le financement du terrorisme (Law No. 2019-005 of February 25, 2019, on the fight against money laundering and terrorist financing). This law forms the backbone of its AML/CFT framework.
  • However, the FATF's Recommendation 15 concerning virtual assets and VASPs, and the subsequent Travel Rule guidance, were significantly updated in June 2019. Mali's 2019 law predates these specific updates, and subsequent assessments have indicated a lack of specific regulation for virtual assets and VASPs.
  • According to the GIABA (Inter-Governmental Action Group against Money Laundering in West Africa) Follow-Up Report on Mali (March 2023), Mali was rated as partially compliant (PC) for FATF Recommendation 15. The report noted that Mali had not yet conducted a risk assessment specific to virtual assets and had not developed the necessary legal and regulatory framework to supervise or monitor VASPs, nor to apply AML/CFT requirements to them.
  • Therefore, the FATF Travel Rule has not been specifically adopted or implemented for VASPs in Mali through dedicated legislation.

• Effective Date:

  • Since specific legislation for VASPs and the Travel Rule has not been adopted, there is no specific effective date for its implementation in Mali. The general AML/CFT Law (Loi n°2019-005) became effective upon its promulgation in February 2019.

• Threshold Amounts:

  • As VASPs are not specifically regulated under the current AML/CFT framework for the Travel Rule, there are no specific threshold amounts defined for virtual asset transactions that would trigger Travel Rule requirements.
  • General AML/CFT obligations for traditional financial institutions typically involve thresholds for cash transactions (e.g., usually around XOF 500,000 to XOF 1,000,000 for customer due diligence or suspicious transaction reporting, though specifics would be in decrees related to the 2019 law). However, these do not directly apply to the Travel Rule for virtual assets without specific VASP regulation.

• Which VASPs are Covered:

  • Given the absence of specific legislation targeting VASPs, there is no clear definition or licensing framework for VASPs in Mali.
  • Entities providing virtual asset services (e.g., exchanges, wallet providers) are currently not explicitly designated as "assujettis" (reporting entities) under the AML/CFT law in the same way traditional financial institutions are.
  • Any existing obligations would only apply if such an entity were also licensed as a traditional financial institution (e.g., a bank offering crypto services), which is rare.

• Technical Implementation Requirements:

  • Since there is no specific regulatory framework for the Travel Rule for VASPs, there are no defined technical implementation requirements.
  • For traditional financial institutions, the requirements typically involve maintaining records of transactions, conducting customer due diligence (CDD), and reporting suspicious transactions to the Cellule Nationale de Traitement des Informations Financières (CENTIF) – Mali's Financial Intelligence Unit.

• Penalties for Non-Compliance:

  • The general AML/CFT Law (Loi n°2019-005) outlines penalties for non-compliance for designated reporting entities. These can include administrative sanctions (fines, revocation of license) and criminal penalties (imprisonment, heavier fines) for serious offenses related to money laundering or terrorist financing.
  • However, without VASPs being explicitly designated as reporting entities for Travel Rule purposes, applying these specific penalties directly for non-compliance with the Travel Rule would be difficult. Penalties would only apply if a VASP's actions were found to violate broader existing AML/CFT provisions that could be loosely interpreted to cover their activities (e.g., failure to report a suspicious transaction if they were somehow deemed a financial intermediary).

References:

1. Loi n°2019-005 du 25 février 2019 relative à la lutte contre le blanchiment de capitaux et le financement du terrorisme:

   • This law can be found on the website of CENTIF Mali (Malian Financial Intelligence Unit).
   • URL: https://centifmali.net/wp-content/uploads/2019/04/Loi-n%C2%B02019-005-du-25-f%C3%A9vrier-2019-relative-%C3%A0-la-lutte-contre-le-blanchiment-de-capitaux-et-le-financement-du-terrorisme.pdf
   • CENTIF Mali Website: https://centifmali.net/

2. GIABA Follow-Up Report on Mali (March 2023):

   • This report provides an assessment of Mali's progress in addressing deficiencies identified in its mutual evaluation report, including adherence to FATF Recommendation 15.
   • URL (example, GIABA hosts these reports): You would typically find this on the GIABA website under "Mutual Evaluations" or "Follow-Up Reports."
   • A direct link for the March 2023 report is usually in the format like: https://www.giaba.org/reports/Mutual_Evaluation/Mali_FUR_EN.pdf (Note: The exact URL might change, but searching "GIABA Mali Follow Up Report 2023" should yield it). The report consistently indicates that R.15 for VASPs is not yet implemented.

In summary, Mali has a foundational AML/CFT law, but specific legislation or guidance to regulate Virtual Asset Service Providers and implement the FATF Travel Rule is still pending. The country has been flagged in international assessments for this gap.