On 17 March 2020, the Joint Money Laundering Steering Group (JMLSG) published for consultation the proposed text of a new chapter to be added to Part II of its anti-money laundering (AML) and counter-terrorist financing (CTF) guidance for the financial services sector.
The proposed new chapter (referred to as Sector 22) contains sectoral guidance relating to cryptoasset exchange providers and custodian wallet providers and takes account of the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, which came into force on 10 January 2020.
The main areas covered within the guidance include:
- the scope of regulation;
- the money laundering and terrorist financing risks in this sector;
- risk management;
- customer due diligence;
- dealing with suspicious transactions; and
- sanctions screening.
The deadline for comments on the proposed new chapter is 18 May 2020.