On-shore VASP in Mauritania

Absence of Specific Legislation: Mauritania has not enacted specific laws or decrees to regulate virtual assets, blockchain technology, or cryptocurrency service providers. Unlike many countries that have adopted or are in the process of adopting bespoke crypto regulations, Mauritania has not yet done so.

Central Bank Stance: The Banque Centrale de Mauritanie (BCM) – the country's central bank and primary financial regulator – has generally taken a cautious stance. While there hasn't been an outright ban, the BCM has historically issued warnings regarding the risks associated with cryptocurrencies, including their volatility, potential for fraud, and use in illicit activities. These warnings serve to inform the public and financial institutions of the risks rather than establishing a regulatory framework.

No Specific Licenses: Consequently, there are no specific licenses or registration requirements for cryptocurrency exchanges, custody providers, or payment processors.

Cryptocurrency Exchanges: No specific license for operating a cryptocurrency exchange. Any entity attempting to operate might fall under general business registration laws, but without specific financial services oversight for crypto.

Custody Providers: No specific license for providing crypto custody services.

Payment Processors (dealing with crypto): No specific license for crypto-related payment processing. If a payment processor primarily deals with fiat currency but offers a crypto "conversion" or "gateway" service, the fiat-related aspects would still be subject to existing BCM regulations for payment service providers (PSPs).

Neither a dedicated licensing nor a registration regime for virtual assets exists.

Entities wishing to operate a business in Mauritania would, however, need to comply with general Mauritanian commercial law for company registration and obtain standard business permits, which are distinct from financial service licenses.

Capital Requirements: No dedicated capital requirements for virtual asset service providers (VASPs).

AML/KYC Requirements: Mauritania does have general Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) laws, which are largely based on FATF recommendations. While these laws apply broadly to financial institutions, their direct applicability to unregulated virtual asset activities is unclear. However, any interaction with the traditional financial system (e.g., converting crypto to fiat through a Mauritanian bank) would trigger the bank's existing AML/KYC obligations. Operators would be advised to implement robust AML/KYC practices voluntarily to mitigate risks and demonstrate good faith, especially if future regulations are introduced. The Cellule Nationale de Traitement des Renseignements Financiers (CENAREF) is Mauritania's Financial Intelligence Unit (FIU) responsible for AML/CFT oversight.

Local Presence: While no specific local presence requirement exists for crypto entities, any business operating in Mauritania would generally need to establish a legal entity and physical presence in accordance with Mauritanian commercial law.

No Defined Process: Since there is no specific regulatory framework or license for virtual asset services, there is no defined application process for such a license in Mauritania.

Legal Uncertainty: Operating a virtual asset business in a jurisdiction without clear regulations carries significant legal and operational risks. There is no legal certainty regarding the status of contracts, consumer protection, tax implications, or the legality of operations.

Risk of Future Regulation: The absence of regulation does not mean permissibility. Mauritania could, at any time, introduce new laws, including bans, strict licensing requirements, or even retroactive measures.

Law N° 2013-030 of 17 July 2013 on Combating Money Laundering and Terrorist Financing (Loi n° 2013-030 du 17 juillet 2013 relative à la lutte contre le blanchiment de capitaux et le financement du terrorisme).

Identification and Verification:

For Natural Persons: Obtain and verify the customer's identity using reliable, independent source documents, data, or information (e.g., national ID card, passport, residence permit). This includes full name, date of birth, place of birth, address, and nationality.

For Legal Entities/Arrangements: Obtain and verify the legal entity's name, legal form, proof of incorporation/existence, address of registered office, names of directors/partners, and provisions regulating the power to bind the entity.

Beneficial Ownership Identification: Identify and take reasonable measures to verify the identity of the beneficial owner(s) of the customer, including for legal entities and arrangements (e.g., trusts). This typically involves identifying individuals who ultimately own or control more than a specified percentage (e.g., 25%) of the entity.

Purpose and Intended Nature of Business Relationship: Understand and, where appropriate, obtain information on the purpose and intended nature of the business relationship or occasional transaction.

Ongoing Monitoring: Conduct ongoing monitoring of the business relationship and transactions undertaken throughout the course of the relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes reviewing transactions for unusual patterns.

Risk-Based Approach: Apply CDD measures on a risk-sensitive basis. VASPs must have policies and procedures for assessing and managing risks associated with different customers, products, services, and geographic areas. Enhanced Due Diligence (EDD) must be applied for higher-risk customers (e.g., Politically Exposed Persons - PEPs), complex or unusually large transactions, and situations identified as high-risk. Simplified Due Diligence (SDD) may be permitted for lower-risk situations, but the VASP must be able to demonstrate that the risk is genuinely low.

Screening: Screen customers against national and international sanctions lists (e.g., UN Security Council resolutions).

Obligation to Report: If a VASP knows, suspects, or has reasonable grounds to suspect that funds or other assets, regardless of their amount, are proceeds of a criminal activity or are linked to terrorist financing, it must promptly report this to the Financial Intelligence Unit (FIU).

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or to third parties that a suspicious transaction report has been or will be submitted.

All data obtained through CDD procedures (identification documents, beneficial ownership information).

Records of transactions, including the amount, currency (virtual and fiat, where applicable), dates, and parties involved (originator and beneficiary information, as per FATF Travel Rule principles).

Records of suspicious transaction reports submitted.

Cellule Nationale de Traitement du Renseignement Financier (CENTRIF) - The Financial Intelligence Unit (FIU):

Ban on Financial Institutions Dealing with Cryptocurrencies:

Content: This circular prohibits banks, financial institutions, and payment service providers supervised by the BCM from engaging in any activities related to cryptocurrencies, including buying, selling, holding, or facilitating transactions involving them. It cites concerns about financial stability, consumer protection, money laundering, and terrorist financing.

Whether Adopted: No, the FATF Travel Rule has not been adopted or implemented in Mauritania. Instead, the country has opted for a prohibition of virtual asset transactions.

Effective Date: The prohibition on virtual asset transactions was communicated by the Banque Centrale de Mauritanie (BCM) on February 16, 2022. This communiqué effectively put in place the ban.

Which VASPs are Covered: Not applicable. No VASPs are permitted to operate legally in Mauritania. Any entity attempting to offer virtual asset services would be doing so illegally.

Communiqué de la Banque Centrale de Mauritanie sur les Monnaies Virtuelles (Cryptomonnaies)

Summary: This communiqué informs the public that transactions using virtual currencies (cryptocurrencies) are not authorized, and no entity in Mauritania is authorized to carry out transactions with these currencies. It warns that anyone engaging in such transactions is subject to existing legal sanctions.

Communiqué from the Banque Centrale de Mauritanie (BCM):

What this means: The BCM's stance implies that any activity related to cryptocurrencies, including custody services, falls outside the legal and regulated financial sector and would likely be viewed as non-compliant or illegal.

Legal Basis (Indirect): The relevant legislation would be Loi N° 2013-057 portant sur les systèmes et moyens de paiement en République Islamique de Mauritanie (Law N° 2013-057 on payment systems and means in the Islamic Republic of Mauritania), and subsequent implementing regulations or circulars from the BCM regarding payment service providers and e-money. This law defines and regulates various payment instruments and services.