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On May 26, 2021, the Federal Ministry of Finance (BMF) in Germany announced a draft regulation of the (BMF) on enhanced due diligence requirements for the transfer of crypto curreny (crypto currency transfer regulation – KryptoTransferV) based on Section 15 (10) sentence 1 number 1 of the Money Laundering Act (GwG).<\/p>\n\n\n\n
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The BMF intends to order by way of ordinance that the parties involved in the transfer of crypto currency transactions transmit information on the originator and beneficiary so that – as in the case of money transfers – the transactions can also be traced with regard to the beneficiaries in order to prevent misuse for money laundering or terrorist financing purposes. This data transmission will allow, in addition to the traceability of the transaction participants, the checking for persons subject to sanctions and a more risk-oriented approach by the service providers involved. The proposal serves to implement the standards of the Financial Action Task Force (Recommendation 15 – Interpretative Note 7b, so-called “travel rule” for crypto currency).<\/p>\n\n\n\n
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The regulation also orders that information on the beneficiary or originator of a crypto currency transfer must be collected and stored if the transfer is from or to an electronic wallet that is not managed by a crypto custodian (self-managed electronic wallet, “unhosted wallet”). This also implements current FATF recommendations in this area. In addition, findings from this may also become relevant with regard to the circumvention of sanctions, e.g. in the area of proliferation financing.<\/p>\n\n\n\n
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In it, the German government announces a “cryptocurrency transfer ordinance” that would make money laundering regulations also applicable to digital currencies over 1,000 euros. In the future, the name, address as well as the account number of the sending customer as well as the name and account number of the recipient will then have to be transmitted.<\/p>\n\n\n\n
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