Crypto-funded debit card in Samoa

Exchanges: There is no framework for licensing crypto-to-fiat or crypto-to-crypto exchanges.

Custody Providers: No specific license for virtual asset custody.

Payment Processors: If a payment processor facilitates transactions involving virtual assets, it would not fall under a specific VA license. If it also deals with fiat currency and cross-border remittances, it might fall under the general financial services laws, which are stringent.

Licensing Regime: Not established for VASPs.

Registration Regime: Not established for VASPs.

Capital Requirements: No specific capital requirements for VASPs. For traditional financial institutions licensed under the Financial Institutions Act, substantial capital requirements exist, but these are not currently applied to crypto businesses directly.

Local Presence: Any company registered and operating in Samoa is required to have a registered office in Samoa and comply with local company law requirements. This typically means having a physical address and potentially local directors/staff, depending on the scale of operations.

Company Registration: Register the company with the Ministry of Commerce, Industry and Labour (MCIL) under the Companies Act. This involves submitting incorporation documents, articles of association, details of directors and shareholders, and paying fees.

Business License: Apply for a general business license from the MCIL.

Tax Registration: Register with the Ministry of Customs and Revenue (MCR) for tax purposes (e.g., Income Tax, VAGST).

Money Laundering Prevention Amendment Act 2021: This crucial amendment specifically expanded the scope of the MLPA 2007 to include Virtual Asset Service Providers (VASPs) as "financial institutions" or "reporting entities," bringing them under the AML/CFT obligations. This aligns Samoa with FATF Recommendation 15 on new technologies.

Identification and Verification:

For Individuals: Obtaining and verifying name, residential address, date of birth, nationality, and a unique identification number (e.g., passport, national ID card). Verification typically requires independent, reliable source documents.

For Legal Entities/Arrangements (e.g., companies, trusts): Obtaining and verifying the name, legal form, proof of existence, powers that bind the entity, and the identity of relevant persons (e.g., directors, senior managing officials).

Beneficial Ownership: Identifying and verifying the identity of the beneficial owner(s) of the customer, and taking reasonable measures to understand the ownership and control structure of legal persons and arrangements.

Purpose and Intended Nature of the Business Relationship: Understanding the purpose and intended nature of the business relationship or occasional transaction.

Ongoing Monitoring: Continuously monitoring the business relationship, including scrutiny of transactions undertaken throughout the course of that relationship, to ensure that the transactions are consistent with the VASP’s knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.

Enhanced Due Diligence (EDD): Applying EDD for higher-risk customers, business relationships, and transactions. This includes situations involving:

Politically Exposed Persons (PEPs).

Customers from high-risk jurisdictions.

Complex, unusually large transactions, or unusual patterns of transactions.

Reporting Obligation: If a VASP knows, suspects, or has reasonable grounds to suspect that funds or transactions (regardless of amount) are linked to money laundering, terrorism financing, or other criminal activity, it must report these suspicions to the FIU without delay.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that a STR has been or will be made, or that an investigation is being conducted.

Record-Keeping: Maintaining records of transactions and customer identification.

Risk Assessments: Conducting regular risk assessments.

Issuing Public Warnings and Advisories: Highlighting the risks associated with cryptocurrencies, stating they are not legal tender, and advising against their use for domestic transactions or investment.

Clarifying Regulatory Status: Emphasizing that no local entities are licensed or authorized to deal in cryptocurrencies within Samoa's jurisdiction.

Outcome: Advised the public that virtual currencies are not legal tender in Samoa, warned of high risks (volatility, scams, money laundering), and stated that no companies are licensed by the CBS to deal in cryptocurrencies in Samoa. This sets the foundational regulatory stance.

Focus on Consumer Protection: The primary goal seems to be protecting Samoan consumers and maintaining financial stability by discouraging involvement with unregulated crypto activities.