• Financial Intelligence Centre (FIC), South Africa’s agency responsible for identifying crime proceeds, combating money laundering, and terrorism financing, has received feedback from 17 commentators on its proposed cryptocurrency transaction regulations. 
• In April 2024, the FIC issued a draft directive regarding the “Travel Rule” that would mandate crypto platforms in South Africa to identify the parties of a cryptocurrency transaction.
• Compliance with the Travel Rule is part of efforts by the FIC to get South Africa off the Financial Action Task Force (FATF) greylist by 2025.

The FATF greylisted the Southern African nation on February 24, 2023, failing to meet up with its 11 measures of a country’s effectiveness in combating money laundering and the financing of terrorism.

The FATF Travel Rule demands that all financial institutions, including virtual assets, provide relevant sender and beneficiary information alongside transactions.

The financial watchdog disclosed that it received submissions from several commentators, including major CASPs, insurance companies, travel rule solution providers, and The Banking Association South Africa.

The agency is currently assessing all comments, with plans to take relevant ones into account to arrive at a final draft of the directive.

“The aim is to have the final directive in place by the third quarter of the financial year,” the FIC added. 

Per the proposed directive signed by FIC Acting Director Pieter Smit, all South African crypto asset service providers (CASPs) are required by regulation to share a significant amount of senders’ personal information with recipient CASPs. The required personal data includes full names, ID numbers (for South African citizens) or passport numbers (for foreigners), residential address, date and place of birth, and wallet address.The new regulation also mandates that CASPs verify all the information they get from other providers in line with the FIC Act.For single cross-border transfers valued at less than R5,000, the ordering crypto asset service provider doesn’t have to verify the personal information provided unless there’s suspicion of money laundering or terrorist financing.

Amongst other things, recipient CASPs must comply with FICA’s “Know Your Customer” rules, which generally require they obtain proof of identity and address when customers open an account on their platforms.

Source

techpoint.africa