{"kind":"expression","expression":{"expr_id":"1968","doc_id":"1968","label":"Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 (SL73 of 2020)","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/amending\/2020\/73\/eng@2020-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/amending\/2020\/73\", \"expression\": \"\/akn\/ky\/act\/amending\/2020\/73\/eng@2020-01-01\", \"manifestation\": \"\/akn\/ky\/act\/amending\/2020\/73\/eng@2020-01-01.pdf\"}, \"pdf\": {\"md5\": \"411f2a7ccddb853f0343deb0079b62ac\", \"path\": \"\/Users\/q\/kyleg-data\/working\/AMENDING\/2020\/2020-0073\/2020-0073.pdf\", \"pages\": 13, \"filename\": \"2020-0073.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 2752, \"paragraph_count\": 9, \"text_char_count\": 18871}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"Proceeds of Crime Law (2020 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) (NO. 2) REGULATIONS, (SL 73 of 2020) SL 73 of 2020 PUBLISHING DETAILS Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 Arrangement of Regulations SL 73 of 2020 Proceeds of Crime Law (2020 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) (NO. 2) REGULATIONS, 2020 (SL 73 of 2020) Arrangement of Regulations Regulation 1.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Amendment of regulation 2 of the Anti-Money Laundering Regulations (2020 Revision) - 3. 4. 5. 6. 7.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Insertion of Part XA - identification and record-keeping requirements relating to transfers Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 Regulation 1 SL 73 of 2020 Proceeds of Crime Law (2020 Revision) ANTI-MONEY LAUNDERING (AMENDMENT) (NO. 2) REGULATIONS, 2020 (SL 73 of 2020) In exercise of the powers conferred by section 145 of the Proceeds of Crime Law (2020 Revision), the Cabinet makes the following Regulations \u2014\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Citation and commencement 1. (1) These Regulations may be cited as the Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020. (2) Regulation 8 shall come into force on such date as may be appointed by Order made by the Cabinet. 2. Amendment of regulation 2 of the Anti-Money Laundering Regulations (2020 Revision) - definitions 2. The Anti-Money Laundering Regulations (2020 Revision), in these Regulations referred to as the \u201cprincipal Regulations\u201d, are amended in regulation 2 as follows \u2014 (a) by inserting after the definition of the words \u201cFinancial Action Task Force\u201d, the following definition \u2014 \u201c \u201cFinancial Action Task Force - style regional body\u201d means an associate member of the Financial Action Task Force comprised of states or territories which have collectively agreed to implement common counter-measures against money laundering, terrorist Regulation 3 Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 SL 73 of 2020 financing and the proliferation of weapons of mass destruction, based on the policies developed and promoted by the Financial Action Task Force;\u201d; (b) by deleting the definition of the words \u201coverseas regulatory authority\u201d and substituting the following definition \u2014 \u201c \u201coverseas regulatory authority\u201d means an authority which \u2014 (a) is located in a country other than the Islands that is a member of the Financial Action Task Force or a member of a Financial Action Task Force-style regional body; and (b) exercises a function corresponding to a statutory function of a Supervisory Authority in relation to relevant financial business in the Islands;\u201d; and (c) by inserting after the definition of the words \u201cunique identifier\u201d, the following definition \u2014 \u201c \u201cvirtual asset service provider\u201d has the meaning assigned under section 3 of the Virtual Asset (Service Providers) Law, 2020;\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Amendment of regulation 6 - group-wide programmes 3. The principal Regulations are amended in regulation 6(1)(d) by inserting after the word \u201cexchanged\u201d the words \u201c, including safeguards to prevent tipping-off\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Amendment of regulation 11 - when customer due diligence is required 4. The principal Regulations are amended in regulation 11 as follows \u2014 (a) by renumbering regulation 11 as regulation 11(1); and (b) by inserting after regulation (11)(1) as renumbered, the following paragraph \u2014 \u201c(2) Notwithstanding paragraph (1)(b), a virtual asset service provider shall undertake customer due diligence measures in respect of each one-off transaction it carries out.\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Amendment of regulation 17 - failure to complete customer due diligence 5. The principal Regulations are amended in regulation 17 by deleting the regulation heading and substituting the following regulation heading \u2014 \u201cDuty to perform enhanced due diligence\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Amendment of regulation 25 - eligible introducer 6. The principal Regulations are amended in regulation 25(1) as follows \u2014 (a) by deleting the words \u201cregulation 22(d)\u201d and substituting the words \u201cregulation 22(1)(d)\u201d; Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 Regulation 7 SL 73 of 2020 (b) in paragraph (d), by deleting the words \u201cfor business; and\u201d and substituting the words \u201cfor business;\u201d; and (c) by inserting after paragraph (d), the following paragraph \u2014 \u201c(da) that the introducer \u2014 (i) is supervised or monitored by a Supervisory Authority or overseas regulatory authority; and (ii) has measures in place, for compliance with customer due diligence and record keeping requirements; and\u201d.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Amendment of regulation 35 - application of this Part 7. The principal Regulations are amended in regulation 35 by inserting after paragraph (2), the following paragraph \u2014 \u201c(3) This Part does not apply to transfers of virtual assets.\u201d. 8. Insertion of Part XA - identification and record-keeping requirements relating to transfers of virtual assets 8. The principal Regulations are amended by inserting after Part X, the following Part \u2014 \u201cPART XA - Identification and record-keeping requirements relating to transfers of virtual assets Definitions under Part XA 49A. In this Part \u2014 \u201cbatch file transfer of virtual assets\u201d means several individual transfers of virtual assets which are bundled together for transmission; \u201cbeneficiary\u201d has the meaning assigned under section 2 of the Virtual Asset (Service Providers) Law, 2020; \u201cbeneficiary virtual asset service provider\u201d means a virtual asset service provider which receives a transfer of virtual assets on behalf of a beneficiary; \u201cintermediary virtual asset service provider\u201d means a virtual asset service provider which \u2014 (a) participates in the execution of a transfer of virtual assets; and (b) is not the originating virtual asset service provider or the beneficiary virtual asset service provider; Regulation 8 Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 SL 73 of 2020 \u201cobliged entity\u201d has the meaning assigned under section 2 of the Virtual Asset (Service Providers) Law, 2020; \u201coriginating virtual asset service provider\u201d means a virtual asset service provider which conducts a transfer of virtual assets on behalf of an originator; \u201coriginator\u201d has the meaning assigned under section 2 of the Virtual Asset (Service Providers) Law, 2020; and \u201ctransfer of virtual asset\u201d has the meaning assigned under section 2 of the Virtual Asset (Service Providers) Law, 2020. Application of this Part 49B. This Part applies to transfers of virtual assets. Transfers of virtual assets to a beneficiary 49C. (1) An originating virtual asset service provider shall, when conducting a transfer of virtual assets to a beneficiary, collect and record the following information \u2014 (a) the name of the originator and the beneficiary; (b) where an account is used to process the transfer of virtual assets by \u2014 (i) the originator, the account number of the originator; or (ii) the beneficiary, the account number of the beneficiary; (c) the address of the originator, the number of a Governmentissued document evidencing the originator\u2019s identity or the originator\u2019s customer identification number or date and place of birth; and (d) where an account is not used to process the transfer of virtual assets, the unique transaction reference number that permits traceability of the transaction. (2) An originating virtual asset service provider shall, before conducting the transfer of virtual assets, verify the information on the originator under paragraph (1) on the basis of documents, data or information that meet the requirements of regulation 20(1). (3) An originating virtual asset service provider shall provide the information under paragraph (1) to the beneficiary virtual asset service provider or obliged entity simultaneously or concurrently with the transfer of virtual assets. (4) An originating virtual asset service provider may provide the information under paragraph (1) to the beneficiary virtual asset service provider or obliged entity directly by attaching the Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 Regulation 8 SL 73 of 2020 information to the transfer of virtual assets or providing the information indirectly. (5) An originating virtual asset service provider shall ensure that transfers of virtual assets are conducted using a system which prevents the unauthorised disclosure of the information under paragraph (1) to a person other than the originating virtual asset service provider, the beneficiary virtual asset service provider or the obliged entity. (6) An originating virtual asset service provider shall, for at least five years, keep records of complete information on the originator and beneficiary which accompanies each transfer of virtual assets. Obligations of a beneficiary virtual asset service provider 49D. (1) A beneficiary virtual asset service provider shall, on receipt of a transfer of virtual assets, collect and record the following information \u2014 (a) the name of the originator and the beneficiary; (b) where an account is used to process the transfer of virtual assets by \u2014 (i) the originator, the account number of the originator; or (ii) the beneficiary, the account number of the beneficiary; (c) the address of the beneficiary, the number of a Governmentissued document evidencing the beneficiary\u2019s identity or the beneficiary\u2019s customer identification number or date and place of birth; and (d) where an account is not used to process the transfer of virtual assets, the unique transaction reference number that permits traceability of the transaction. (2) A beneficiary virtual asset service provider shall verify the accuracy of information on the beneficiary under paragraph (1) on the basis of documents, data or information that meets the requirements of regulation 20(1). (3) A beneficiary virtual asset service provider shall, for at least five years, keep records of complete information on the originator and beneficiary which accompanies each transfer of virtual assets. Regulation 8 Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 SL 73 of 2020 Duty to produce information 49E. (1) A competent authority may, by notice in writing, require an originating virtual asset service provider or a beneficiary virtual asset service provider to provide information in respect of a transfer of virtual assets carried out under this Part. (2) An originating virtual asset service provider or a beneficiary virtual asset service provider which receives a notice under paragraph (1) shall comply with that notice within the period and in the manner specified in the notice. Batch file transfers of virtual assets 49F. (1) For batch file transfers of virtual assets from a single originator, regulation 49C(1) shall not apply to the individual transfers of virtual assets bundled together if \u2014 (a) the batch file contains \u2014 (i) the name of the originator; (ii) where an account is used to process the transfer of virtual assets by the originator, the account number of the originator; (iii) the address of the originator, the number of a Government-issued document evidencing the originator\u2019s identity or the originator\u2019s customer identification number or date and place of birth; and (b) the individual transfers of virtual assets carry the account number of the originator or a unique identifier. (2) A batch file shall contain the name, account number or unique identifier of the beneficiary that is traceable in the beneficiary country. Obligations of a beneficiary virtual asset service provider 49G. A beneficiary virtual asset service provider shall have effective procedures in place in order to detect whether, in the messaging or payment and settlement system or equivalent system used to effect a transfer of virtual assets, the information required under regulations 49C(1), 49F and 49N is obtained in accordance with these Regulations. Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 Regulation 8 SL 73 of 2020 Transfers of virtual assets with missing or incomplete information about the originator 49H.(1) An originating virtual asset service provider shall not execute transfers of virtual assets where the originating virtual asset service provider is unable to collect and maintain information on the originator and beneficiary as required under regulation 49C(1) and 49F. (2) A beneficiary virtual asset service provider shall have effective systems in place to detect missing required information on both the originator and beneficiary. (3) Where a beneficiary virtual asset service provider detects, when receiving transfers of virtual assets, that information on the originator required under this Part is missing or incomplete, the beneficiary virtual asset service provider shall either reject the transfer of virtual assets or request complete information on the originator. (4) A beneficiary virtual asset service provider shall adopt risk-based policies and procedures for determining \u2014 (a) whether to execute, reject or suspend a transfer of virtual assets; and (b) the resulting procedures to be applied, where the required originator or beneficiary information is incomplete. (5) Where an originating virtual asset service provider regularly fails to supply the required information on the originator, the beneficiary virtual asset service provider shall adopt reasonable measures to rectify noncompliance with these Regulations before \u2014 (a) rejecting any future transfers of virtual assets from that originating virtual asset service provider; (b) restricting its business relationship with that originating virtual asset service provider; or (c) terminating its business relationship with that originating virtual asset service provider, and the beneficiary virtual asset service provider shall report to the Financial Reporting Authority and to the relevant Supervisory Authority any such decision to restrict or terminate its business relationship with that originating virtual asset service provider. Regulation 8 Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 SL 73 of 2020 Assessment and reporting of suspicious transfers of virtual assets 49I. A beneficiary virtual asset service provider shall consider incomplete information about the originator as a factor in assessing whether a transfer of virtual assets, or any related transaction, is suspicious and where it is determined that the transaction is suspicious, the suspicious transaction shall be reported to the Financial Reporting Authority in accordance with the Law. Information accompanying a transfer of virtual assets 49J.An intermediary virtual asset service provider which participates in a transfer of virtual assets shall ensure that all information received on the originator and the beneficiary that accompanies a transfer of virtual assets is kept with the transfer of virtual assets. Straight-through processing of transfers of virtual assets 49K.An intermediary virtual asset service provider shall \u2014 (a) take reasonable measures, which are consistent with straightthrough processing, to identify transfers of virtual assets that lack required originator or beneficiary information; and (b) adopt risk-based policies and procedures for determining \u2014 (i) when to execute, reject or suspend a transfer of virtual assets; and (ii) the resulting procedures to be applied, where the required originator or beneficiary information is incomplete. Obligation of a virtual asset service provider to comply with requirements 49L. A virtual asset service provider shall comply with all of the relevant requirements under this Part in the countries in which they operate, either directly or through the agents of the virtual asset service provider. Obligation of a virtual asset service provider to file suspicious activity report 49M. A virtual asset service provider, that controls both the originating virtual asset service provider and the beneficiary virtual asset service provider, shall \u2014 (a) consider the information from both the originating virtual asset service provider and the beneficiary virtual asset service provider to determine whether a suspicious activity report should be filed; and Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 Regulation 8 SL 73 of 2020 (b) further to paragraph (a), file the suspicious activity report in the country from which the transfer of virtual assets originated or to which the transfer of virtual assets was destined and make relevant transaction information available to the Financial Reporting Authority and the relevant authorities in the country from which the transfer originated or to which it was destined. Technical limitations related to transfers of virtual assets 49N. Where technical limitations prevent an intermediary virtual asset service provider from sending the required originator or beneficiary information with the transfer of virtual assets, the intermediary virtual asset service provider shall keep a record of all the information received from the originating virtual asset service provider, obliged entity or other intermediary, for at least five years. Obligation to have risk-based policies 49O. An intermediary virtual asset service provider shall have risk-based policies and procedures for determining \u2014 (a) when to execute, reject, or suspend a transfer of virtual assets lacking required originator or required beneficiary information; and (b) the appropriate follow-up action. Interpreting inconsistencies with other Parts 49P. Where there is an inconsistency between the provisions of this Part and any other provision of these Regulations, the provisions of this Part shall prevail to the extent of the inconsistency.\u201d. Made in Cabinet the 22nd day of May, 2020. 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group-wide programmes ...............................................................6\n4.\nAmendment of regulation 11 - when customer due diligence is required ....................................6\n5.\nAmendment of regulation 17 - failure to complete customer due diligence .................................6\n6.\nAmendment of regulation 25 - eligible introducer .......................................................................6\n7.\nAmendment of regulation 35 - application of this Part ................................................................7\n8.\nInsertion of Part XA - identification and record-keeping requirements relating to transfers\nof virtual assets ..........................................................................................................................7\n\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\nRegulation 1\n\nc\nSL 73 of 2020\nPage 5\n\nCAYMAN ISLANDS\n\nProceeds of Crime Law\n(2020 Revision)\nANTI-MONEY LAUNDERING (AMENDMENT)\n(NO. 2) REGULATIONS, 2020\n(SL 73 of 2020)\nIn exercise of the powers conferred by section 145 of the Proceeds of Crime Law (2020\nRevision), the Cabinet makes the following Regulations \u2014\n1.\nCitation and commencement\n1.\n(1) These Regulations may be cited as the Anti-Money Laundering (Amendment)\n(No. 2) Regulations, 2020.\n(2) Regulation 8 shall come into force on such date as may be appointed by Order\nmade by the Cabinet.\n2.\nAmendment of regulation 2 of the Anti-Money Laundering Regulations (2020\nRevision) - definitions\n2.\nThe Anti-Money Laundering Regulations (2020 Revision), in these Regulations\nreferred to as the \u201cprincipal Regulations\u201d, are amended in regulation 2 as follows \u2014\n(a)\nby inserting after the definition of the words \u201cFinancial Action Task\nForce\u201d, the following definition \u2014\n\u201c \u201cFinancial Action Task Force - style regional body\u201d means an\nassociate member of the Financial Action Task Force comprised of\nstates or territories which have collectively agreed to implement\ncommon counter-measures against money laundering, terrorist\n\nRegulation 3\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\n\nPage 6\nSL 73 of 2020\nc\n\nfinancing and the proliferation of weapons of mass destruction, based\non the policies developed and promoted by the Financial Action Task\nForce;\u201d;\n(b) by deleting the definition of the words \u201coverseas regulatory authority\u201d and\nsubstituting the following definition \u2014\n\u201c \u201coverseas regulatory authority\u201d means an authority which \u2014\n(a)\nis located in a country other than the Islands that is a\nmember of the Financial Action Task Force or a member\nof a Financial Action Task Force-style regional body; and\n(b) exercises a function corresponding to a statutory function\nof a Supervisory Authority in relation to relevant financial\nbusiness in the Islands;\u201d; and\n(c)\nby inserting after the definition of the words \u201cunique identifier\u201d, the\nfollowing definition \u2014\n\u201c \u201cvirtual asset service provider\u201d has the meaning assigned under\nsection 3 of the Virtual Asset (Service Providers) Law, 2020;\u201d.\n3.\nAmendment of regulation 6 - group-wide programmes\n3.\nThe principal Regulations are amended in regulation 6(1)(d) by inserting after the\nword \u201cexchanged\u201d the words \u201c, including safeguards to prevent tipping-off\u201d.\n4.\nAmendment of regulation 11 - when customer due diligence is required\n4.\nThe principal Regulations are amended in regulation 11 as follows \u2014\n(a)\nby renumbering regulation 11 as regulation 11(1); and\n(b) by inserting after regulation (11)(1) as renumbered, the following\nparagraph \u2014\n\u201c(2) Notwithstanding paragraph (1)(b), a virtual asset service provider\nshall undertake customer due diligence measures in respect of each\none-off transaction it carries out.\u201d.\n5.\nAmendment of regulation 17 - failure to complete customer due diligence\n5.\nThe principal Regulations are amended in regulation 17 by deleting the regulation\nheading and substituting the following regulation heading \u2014\n\u201cDuty to perform enhanced due diligence\u201d.\n6.\nAmendment of regulation 25 - eligible introducer\n6.\nThe principal Regulations are amended in regulation 25(1) as follows \u2014\n(a)\nby deleting the words \u201cregulation 22(d)\u201d and substituting the words\n\u201cregulation 22(1)(d)\u201d;\n\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\nRegulation 7\n\nc\nSL 73 of 2020\nPage 7\n\n(b) in paragraph (d), by deleting the words \u201cfor business; and\u201d and substituting\nthe words \u201cfor business;\u201d; and\n(c)\nby inserting after paragraph (d), the following paragraph \u2014\n\u201c(da) that the introducer \u2014\n(i)\nis supervised or monitored by a Supervisory Authority or\noverseas regulatory authority; and\n(ii) has measures in place,\nfor compliance with customer due diligence and record keeping\nrequirements; and\u201d.\n7.\nAmendment of regulation 35 - application of this Part\n7.\nThe principal Regulations are amended in regulation 35 by inserting after paragraph\n(2), the following paragraph \u2014\n\u201c(3) This Part does not apply to transfers of virtual assets.\u201d.\n8.\nInsertion of Part XA - identification and record-keeping requirements relating\nto transfers of virtual assets\n8.\nThe principal Regulations are amended by inserting after Part X, the following Part \u2014\n\u201cPART XA - Identification and record-keeping requirements\nrelating to transfers of virtual assets\n\nDefinitions under Part XA\n49A. In this Part \u2014\n\u201cbatch file transfer of virtual assets\u201d means several individual\ntransfers of virtual assets which are bundled together for\ntransmission;\n\u201cbeneficiary\u201d has the meaning assigned under section 2 of the\nVirtual Asset (Service Providers) Law, 2020;\n\u201cbeneficiary virtual asset service provider\u201d means a virtual asset\nservice provider which receives a transfer of virtual assets on behalf\nof a beneficiary;\n\u201cintermediary virtual asset service provider\u201d means a virtual asset\nservice provider which \u2014\n(a)\nparticipates in the execution of a transfer of virtual assets; and\n(b) is not the originating virtual asset service provider or the\nbeneficiary virtual asset service provider;\n\nRegulation 8\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\n\nPage 8\nSL 73 of 2020\nc\n\n\u201cobliged entity\u201d has the meaning assigned under section 2 of the\nVirtual Asset (Service Providers) Law, 2020;\n\u201coriginating virtual asset service provider\u201d means a virtual asset\nservice provider which conducts a transfer of virtual assets on behalf\nof an originator;\n\u201coriginator\u201d has the meaning assigned under section 2 of the Virtual\nAsset (Service Providers) Law, 2020; and\n\u201ctransfer of virtual asset\u201d has the meaning assigned under section\n2 of the Virtual Asset (Service Providers) Law, 2020.\n\nApplication of this Part\n49B. This Part applies to transfers of virtual assets.\n\nTransfers of virtual assets to a beneficiary\n49C. (1) An originating virtual asset service provider shall, when conducting\na transfer of virtual assets to a beneficiary, collect and record the\nfollowing information \u2014\n(a)\nthe name of the originator and the beneficiary;\n(b) where an account is used to process the transfer of virtual assets\nby \u2014\n(i)\nthe originator, the account number of the originator; or\n(ii) the beneficiary, the account number of the beneficiary;\n(c)\nthe address of the originator, the number of a Governmentissued document evidencing the originator\u2019s identity or the\noriginator\u2019s customer identification number or date and place\nof birth; and\n(d) where an account is not used to process the transfer of virtual\nassets, the unique transaction reference number that permits\ntraceability of the transaction.\n(2) An originating virtual asset service provider shall, before conducting\nthe transfer of virtual assets, verify the information on the originator\nunder paragraph (1) on the basis of documents, data or information\nthat meet the requirements of regulation 20(1).\n(3) An originating virtual asset service provider shall provide the\ninformation under paragraph (1) to the beneficiary virtual asset\nservice provider or obliged entity simultaneously or concurrently\nwith the transfer of virtual assets.\n(4) An originating virtual asset service provider may provide the\ninformation under paragraph (1) to the beneficiary virtual asset\nservice provider or obliged entity directly by attaching the\n\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\nRegulation 8\n\nc\nSL 73 of 2020\nPage 9\n\ninformation to the transfer of virtual assets or providing the\ninformation indirectly.\n(5) An originating virtual asset service provider shall ensure that\ntransfers of virtual assets are conducted using a system which\nprevents the unauthorised disclosure of the information under\nparagraph (1) to a person other than the originating virtual asset\nservice provider, the beneficiary virtual asset service provider or the\nobliged entity.\n(6) An originating virtual asset service provider shall, for at least five\nyears, keep records of complete information on the originator and\nbeneficiary which accompanies each transfer of virtual assets.\n\nObligations of a beneficiary virtual asset service provider\n49D. (1) A beneficiary virtual asset service provider shall, on receipt of a\ntransfer of virtual assets, collect and record the following\ninformation \u2014\n(a)\nthe name of the originator and the beneficiary;\n(b) where an account is used to process the transfer of virtual assets\nby \u2014\n(i)\nthe originator, the account number of the originator; or\n(ii) the beneficiary, the account number of the beneficiary;\n(c)\nthe address of the beneficiary, the number of a Governmentissued document evidencing the beneficiary\u2019s identity or the\nbeneficiary\u2019s customer identification number or date and place\nof birth; and\n(d) where an account is not used to process the transfer of virtual\nassets, the unique transaction reference number that permits\ntraceability of the transaction.\n(2) A beneficiary virtual asset service provider shall verify the accuracy\nof information on the beneficiary under paragraph (1) on the basis of\ndocuments, data or information that meets the requirements of\nregulation 20(1).\n(3) A beneficiary virtual asset service provider shall, for at least five\nyears, keep records of complete information on the originator and\nbeneficiary which accompanies each transfer of virtual assets.\n\nRegulation 8\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\n\nPage 10\nSL 73 of 2020\nc\n\nDuty to produce information\n49E. (1) A competent authority may, by notice in writing, require an\noriginating virtual asset service provider or a beneficiary virtual asset\nservice provider to provide information in respect of a transfer of\nvirtual assets carried out under this Part.\n(2) An originating virtual asset service provider or a beneficiary virtual\nasset service provider which receives a notice under paragraph (1)\nshall comply with that notice within the period and in the manner\nspecified in the notice.\n\nBatch file transfers of virtual assets\n49F. (1) For batch file transfers of virtual assets from a single originator,\nregulation 49C(1) shall not apply to the individual transfers of virtual\nassets bundled together if \u2014\n(a)\nthe batch file contains \u2014\n(i)\nthe name of the originator;\n(ii) where an account is used to process the transfer of virtual\nassets by the originator, the account number of the\noriginator;\n(iii) the address of the originator, the number of a\nGovernment-issued document evidencing the originator\u2019s\nidentity or the originator\u2019s customer identification number\nor date and place of birth; and\n(b) the individual transfers of virtual assets carry the account\nnumber of the originator or a unique identifier.\n(2) A batch file shall contain the name, account number or unique\nidentifier of the beneficiary that is traceable in the beneficiary\ncountry.\n\nObligations of a beneficiary virtual asset service provider\n49G. A beneficiary virtual asset service provider shall have effective\nprocedures in place in order to detect whether, in the messaging or\npayment and settlement system or equivalent system used to effect a\ntransfer of virtual assets, the information required under regulations\n49C(1), 49F and 49N is obtained in accordance with these Regulations.\n\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\nRegulation 8\n\nc\nSL 73 of 2020\nPage 11\n\nTransfers of virtual assets with missing or incomplete information\nabout the originator\n49H.(1) An originating virtual asset service provider shall not execute\ntransfers of virtual assets where the originating virtual asset service\nprovider is unable to collect and maintain information on the\noriginator and beneficiary as required under regulation 49C(1) and\n49F.\n(2) A beneficiary virtual asset service provider shall have effective\nsystems in place to detect missing required information on both the\noriginator and beneficiary.\n(3) Where a beneficiary virtual asset service provider detects, when\nreceiving transfers of virtual assets, that information on the originator\nrequired under this Part is missing or incomplete, the beneficiary\nvirtual asset service provider shall either reject the transfer of virtual\nassets or request complete information on the originator.\n(4) A beneficiary virtual asset service provider shall adopt risk-based\npolicies and procedures for determining \u2014\n(a)\nwhether to execute, reject or suspend a transfer of virtual assets;\nand\n(b) the resulting procedures to be applied,\nwhere the required originator or beneficiary information is\nincomplete.\n(5) Where an originating virtual asset service provider regularly fails to\nsupply the required information on the originator, the beneficiary\nvirtual asset service provider shall adopt reasonable measures to\nrectify noncompliance with these Regulations before \u2014\n(a)\nrejecting any future transfers of virtual assets from that\noriginating virtual asset service provider;\n(b) restricting its business relationship with that originating virtual\nasset service provider; or\n(c)\nterminating its business relationship with that originating\nvirtual asset service provider,\nand the beneficiary virtual asset service provider shall report to the\nFinancial Reporting Authority and to the relevant Supervisory\nAuthority any such decision to restrict or terminate its business\nrelationship with that originating virtual asset service provider.\n\nRegulation 8\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\n\nPage 12\nSL 73 of 2020\nc\n\nAssessment and reporting of suspicious transfers of virtual assets\n49I. A beneficiary virtual asset service provider shall consider incomplete\ninformation about the originator as a factor in assessing whether a transfer\nof virtual assets, or any related transaction, is suspicious and where it is\ndetermined that the transaction is suspicious, the suspicious transaction\nshall be reported to the Financial Reporting Authority in accordance with\nthe Law.\n\nInformation accompanying a transfer of virtual assets\n49J.An intermediary virtual asset service provider which participates in a\ntransfer of virtual assets shall ensure that all information received on the\noriginator and the beneficiary that accompanies a transfer of virtual assets\nis kept with the transfer of virtual assets.\n\nStraight-through processing of transfers of virtual assets\n49K.An intermediary virtual asset service provider shall \u2014\n(a) take reasonable measures, which are consistent with straightthrough processing, to identify transfers of virtual assets that\nlack required originator or beneficiary information; and\n(b) adopt risk-based policies and procedures for determining \u2014\n(i) when to execute, reject or suspend a transfer of virtual\nassets; and\n(ii) the resulting procedures to be applied,\nwhere the required originator or beneficiary information is\nincomplete.\n\nObligation of a virtual asset service provider to comply with\nrequirements\n49L. A virtual asset service provider shall comply with all of the relevant\nrequirements under this Part in the countries in which they operate, either\ndirectly or through the agents of the virtual asset service provider.\n\nObligation of a virtual asset service provider to file suspicious\nactivity report\n49M. A virtual asset service provider, that controls both the originating virtual\nasset service provider and the beneficiary virtual asset service provider,\nshall \u2014\n(a)\nconsider the information from both the originating virtual asset\nservice provider and the beneficiary virtual asset service\nprovider to determine whether a suspicious activity report\nshould be filed; and\n\nAnti-Money Laundering (Amendment) (No. 2) Regulations, 2020\nRegulation 8\n\nc\nSL 73 of 2020\nPage 13\n\n(b) further to paragraph (a), file the suspicious activity report in the\ncountry from which the transfer of virtual assets originated or\nto which the transfer of virtual assets was destined and make\nrelevant transaction information available to the Financial\nReporting Authority and the relevant authorities in the country\nfrom which the transfer originated or to which it was destined.\n\nTechnical limitations related to transfers of virtual assets\n49N. Where technical limitations prevent an intermediary virtual asset service\nprovider from sending the required originator or beneficiary information\nwith the transfer of virtual assets, the intermediary virtual asset service\nprovider shall keep a record of all the information received from the\noriginating virtual asset service provider, obliged entity or other\nintermediary, for at least five years.\n\nObligation to have risk-based policies\n49O. An intermediary virtual asset service provider shall have risk-based\npolicies and procedures for determining \u2014\n(a)\nwhen to execute, reject, or suspend a transfer of virtual assets\nlacking required originator or required beneficiary information;\nand\n(b) the appropriate follow-up action.\n\nInterpreting inconsistencies with other Parts\n49P. Where there is an inconsistency between the provisions of this Part and\nany other provision of these Regulations, the provisions of this Part shall\nprevail to the extent of the inconsistency.\u201d.\n\nMade in Cabinet the 22nd day of May, 2020.\nKim Bullings\nClerk of the Cabinet","akn_extracted_at":"2026-06-22 15:41:16.45848+00","cms_id":"2020-0073","law_type":"amending","year":"2020","number":"73","title":"Anti-Money Laundering (Amendment) (No. 2) Regulations, 2020 (SL73 of 2020)","status":"spent"},"provenance":{"files":[{"file_id":"6756","expr_id":"1968","kind":"akn_xml","filename":"2020-0073.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2020\/2020-0073\/2020-0073.akn.xml","content_md5":"a75edbbdbe062fa09f329620184738ad","byte_size":"21372","http_last_modified":null,"fetched_at":"2026-06-22 15:41:16.547171+00"},{"file_id":"3935","expr_id":"1968","kind":"pristine_pdf","filename":"2020-0073.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2020\/2020-0073\/2020-0073.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/AMENDING\/2020\/2020-0073\/2020-0073.pdf","content_md5":"411f2a7ccddb853f0343deb0079b62ac","byte_size":"702809","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.129909+00"},{"file_id":"3936","expr_id":"1968","kind":"working_pdf","filename":"2020-0073.pdf","source_url":"\/cms\/images\/LEGISLATION\/AMENDING\/2020\/2020-0073\/2020-0073.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/AMENDING\/2020\/2020-0073\/2020-0073.pdf","content_md5":"411f2a7ccddb853f0343deb0079b62ac","byte_size":"702809","http_last_modified":null,"fetched_at":"2026-06-16 04:01:11.129909+00"}],"paragraph_count":30,"latest_history":null},"quality":{"expr_id":"1968","doc_id":"1968","quality_state":"needs_review","quality_score":"72","needs_human_review":"t","deterministic_categories":"{commencement_metadata_problem,duplicate_text,page_header_footer_noise}","llm_categories":"{}","repair_actions":"{collapse_duplicate_text,strip_page_furniture,verify_commencement_metadata}","finding_severity_counts":"{\"low\": 1, \"medium\": 2}","finding_summary":"repeated line furniture detected: cayman islands x3; proceeds of crime law x3; 2020 revision x3; duplicate-line ratio is 14.97%","assessed_at":"2026-06-22 15:29:46.240966+00","updated_at":"2026-06-22 15:29:46.240966+00"}}