Custodial wallet / SaaS in Samoa

Custody Providers: No specific license for virtual asset custody.

Licensing Regime: Not established for VASPs.

Registration Regime: Not established for VASPs.

AML/KYC Requirements: This is the most crucial area where virtual asset service providers would face obligations. Samoa has a robust AML/CFT framework, primarily governed by the Proceeds of Crime Act 2007 and supervised by the Financial Intelligence Unit (FIU).

While not explicitly listing "virtual asset service providers," the definitions of "financial institution" and "designated non-financial businesses and professions (DNFBP)" under the Act are broad enough that entities dealing with virtual assets could be interpreted as subject to AML/CFT obligations if their activities constitute dealing in "funds" or "property."

Money Laundering Prevention Act 2007 (MLPA 2007): This is the principal AML/CFT legislation. It mandates reporting entities (which typically include VASPs, even if not explicitly named, under broader definitions of financial institutions or through specific guidance/regulations) to implement measures to prevent money laundering and terrorist financing. This includes identifying and freezing assets of designated persons and entities.

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.

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

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.

Simplified Due Diligence (SDD): Permitted in specified low-risk situations, as defined by regulations or FIU guidance, where adequate measures exist to mitigate the risk.

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.

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).

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.

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.

Central Bank of Samoa (CBS) - Public Notice on Virtual Currencies (2018, reaffirmed consistently):

Lack of Domestic Licensing: Since no entities are licensed, there are fewer specific regulatory conditions to violate, leading to fewer enforcement actions typically seen in regulated markets.

Proceeds of Crime Act 2007 (as amended): This is the primary legislation for AML/CFT in Samoa. Any entity operating in Samoa, especially if dealing with monetary value or funds, would fall under its purview for AML/CFT compliance.