Togo -- Travel Rule Implementation Regulatory Overview

The implementation of the FATF Travel Rule in Togo is primarily guided by regional directives issued by the Central Bank of West African States (BCEAO), which governs the monetary and financial policies for the eight member states of the West African Economic and Monetary Union (UEMOA), including Togo.

Togo, like other UEMOA members, is obligated to transpose these regional directives into its national legislation.

Here's a breakdown:

1. Adoption and Effective Date

• Regional Adoption: The BCEAO issued Instruction N° 003/2022/RB/BCEAO concerning the conditions for the exercise of activities related to virtual assets within the UEMOA. This instruction effectively transposes the FATF Recommendations, including Recommendation 15 (which covers VASPs) and Recommendation 16 (the Travel Rule).
• Effective Date (Regional): The BCEAO Instruction N° 003/2022/RB/BCEAO was published on March 24, 2022, making it effective from that date for VASPs operating within the UEMOA zone. Member states, including Togo, are expected to implement this through national laws and regulations.
• National Status in Togo: While the regional directive is clear, specific national legislation in Togo directly transposing all aspects of the BCEAO instruction specifically on virtual assets, including the Travel Rule, into a standalone law can still be a work in progress. However, existing AML/CFT laws in Togo (e.g., Law N° 2018-006 of June 11, 2018, on the Fight against Money Laundering and Terrorist Financing) provide the framework within which virtual asset regulations would operate. The BCEAO directive mandates that national financial intelligence units (FIUs) and supervisory authorities ensure compliance.

References:

• BCEAO Instruction N° 003/2022/RB/BCEAO: https://www.bceao.int/sites/default/files/2022-04/Instruction_003-2022_RB_BCEAO.pdf (French)
• FATF Recommendations (General): https://www.fatf-gafi.org/recommendations/

2. Threshold Amounts

The BCEAO Instruction N° 003/2022/RB/BCEAO aligns with FATF Recommendation 16 regarding the Travel Rule:

• For transactions equal to or exceeding EUR 1,000 (or its equivalent in other currencies/VAs): VASPs must obtain and transmit both originator and beneficiary information.
  • Originator Information: Name, physical address, account number used to process the transaction (e.g., wallet address), and a unique transaction identifier.
  • Beneficiary Information: Name, account number used to process the transaction (e.g., wallet address), and a unique transaction identifier.
• For transactions below EUR 1,000: While the full Travel Rule data is not required to be transmitted for these smaller amounts, VASPs are still obligated to collect and retain the originator's name and account number, and the beneficiary's name, as part of their customer due diligence (CDD) obligations.

3. Which VASPs Are Covered

The BCEAO Instruction (Article 1) defines Virtual Asset Service Providers (VASPs) broadly, consistent with FATF definitions. It includes any natural or legal person who, on behalf of or for the account of a third party, carries out one or more of the following activities or operations:

• Exchange between virtual assets and fiat currencies.
• Exchange between one or more forms of virtual assets.
• Transfer of virtual assets.
• Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.
• Participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset.

This definition covers a wide range of entities, including virtual asset exchanges, custodian wallet providers, and other entities facilitating virtual asset transfers.

4. Technical Implementation Requirements

The BCEAO Instruction (Article 2) mandates that VASPs must:

• Transmit required information: "immediately and securely" to the beneficiary VASP.
• Ensure accuracy: Verify the accuracy of the information before transmission.
• Data Retention: Retain all collected information for at least five (5) years from the date of the transaction or the end of the business relationship, in line with general AML/CFT requirements.
• Data Security: Implement robust security measures to protect customer data.

The Instruction does not specify a particular technical solution (e.g., TRISA, OpenVASP, Shyft Network) but requires that the method of transmission be secure, reliable, and capable of conveying the mandated information. VASPs are expected to adopt interoperable solutions that facilitate the secure transfer of information.

5. Penalties for Non-Compliance

The BCEAO Instruction (Article 7) states that non-compliance with its provisions by VASPs exposes them to administrative sanctions, without prejudice to criminal penalties applicable under national legislation.

In Togo, the general AML/CFT legal framework (e.g., Law N° 2018-006) outlines penalties for non-compliance, which typically include:

• Administrative Sanctions: Fines, suspension of activities, revocation of licenses, and restrictions on operations, imposed by the relevant supervisory authorities (e.g., the BCEAO, the national financial intelligence unit - CENTIF in Togo).
• Criminal Penalties: For serious breaches, particularly those involving money laundering or terrorist financing, individuals and corporate officers can face imprisonment and substantial monetary fines. These penalties are determined by national criminal law and the AML/CFT framework.

The specific amount of fines and duration of imprisonment would be detailed in Togo's national AML/CFT law or specific decrees implementing the BCEAO instruction.

Reference for Togo's AML/CFT Law (general framework):

• Loi n° 2018-006 du 11 juin 2018 relative à la lutte contre le blanchiment de capitaux et le financement du terrorisme: While a direct online URL for an official government portal is difficult to find consistently for all countries, this law is the primary national legislative text for AML/CFT in Togo.