Extension of Part IV of AMLA to IEOs, Digital Custodians and Digital Asset Advisors, and Explicit Broadening to Equity Crowdfunding, Crowdfunding, P2P and other Recognised Market Operator Platforms

On 24 December 2021, the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Invocation of Part IV) Order 2021 and the Anti-Money Laundering, Anti-Terrorism Financing And Proceeds Of Unlawful Activities (Amendment Of First And Second Schedules) Order 2021 extended the application of Part IV of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (“AMLA“) to digital asset custodians, intermediaries, and those involved in the provision of advisory services relating to the offer or sale of digital currencies or digital tokens. Part IV of AMLA deals with reporting obligations of reporting institutions, including the duties for record-keeping, customer due diligence, having and maintaining a compliance programme, and other requirements relating to disclosure, tip-off, and investigation or protection of reporting persons and institutions.

This Update provides a summary of the key amendments, as well as the impact on operators and consequences of non-compliance.