Article 17 — Transfers of crypto-assets with missing or incomplete information on the originator or the beneficiary.

Article 17 — Transfers of crypto-assets with missing or incomplete information on the originator or the beneficiary

1. The crypto-asset service provider of the beneficiary shall implement effective risk-based procedures, including procedures based on the risk-sensitive basis referred to in Article 13 of Directive (EU) 2015/849, for determining whether to execute, reject, return or suspend a transfer of crypto-assets lacking the required complete information on the originator and the beneficiary and for taking the appropriate follow-up action.

Where the crypto-asset service provider of the beneficiary becomes aware that the information referred to in Article 14(1) or (2), or in Article 15, is missing or incomplete, that crypto-asset service provider shall, on a risk-sensitive basis and without undue delay:

(a) reject the transfer or return the transferred crypto-assets to the originator’s crypto-asset account; or

(b) request the required information on the originator and the beneficiary before making the crypto-assets available to the beneficiary. 2. Where a crypto-asset service provider repeatedly fails to provide the required information on the originator or the beneficiary, the crypto-asset service provider of the beneficiary shall:

(a) take steps, which may initially include the issuing of warnings and setting of deadlines, before proceeding to a rejection, restriction or termination in accordance with point (b) if the required information is still not provided; or

(b) directly reject any future transfers of crypto-assets to or from, or restrict or terminate its business relationship with, that crypto-asset service provider.

The crypto-asset service provider of the beneficiary shall report that failure, and the steps taken, to the competent authority responsible for monitoring compliance with anti-money laundering and counter-terrorist financing provisions.

Need the firm-level check?

This is the rule. If you need the firm-level check for a file — one firm, one register question, dated and signed — see the dated counterparty note.

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