[{"data":1,"prerenderedAt":125},["ShallowReactive",2],{"/blog/bnm-aml-policy-digital-currencies-2018":3},{"id":4,"title":5,"author":6,"authorPic":7,"body":8,"category":114,"coverPics":18,"date":115,"description":116,"extension":117,"meta":118,"navigation":119,"path":120,"seo":121,"stem":122,"type":123,"__hash__":124},"blogs/blog/bnm-aml-policy-digital-currencies-2018.md","Bank Negara makes crypto exchangers reporting institutions under AMLA","Malaysia Blockchain Association Team","https://api.dicebear.com/7.x/avataaars/svg?seed=mba-team-3",{"type":9,"value":10,"toc":105},"minimark",[11,19,27,32,39,42,58,61,65,72,75,80],[12,13,14],"p",{},[15,16],"img",{"alt":17,"src":18},"Regulatory file","/img/blog/gen/bnm-aml-policy-digital-currencies-2018.svg",[12,20,21,22,26],{},"Malaysia's first binding regulatory instrument aimed specifically at the crypto sector is now in force. Bank Negara Malaysia's policy document ",[23,24,25],"strong",{},"\"Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) – Digital Currencies (Sector 6)\""," took effect on 27 February 2018.",[28,29,31],"h2",{"id":30},"what-the-policy-does","What the policy does",[12,33,34,35,38],{},"Invoking the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), the policy designates any person converting digital currency to or from fiat money — or to or from another digital currency — as a ",[23,36,37],{},"\"reporting institution\""," under the First Schedule of AMLA.",[12,40,41],{},"That designation carries real obligations. Exchangers must:",[43,44,45,49,52,55],"ul",{},[46,47,48],"li",{},"conduct customer due diligence, identifying customers by name, address and identification number;",[46,50,51],{},"assess money-laundering and terrorism-financing risks in their business;",[46,53,54],{},"keep records of transactions; and",[46,56,57],{},"file suspicious transaction reports with Bank Negara.",[12,59,60],{},"Digital currency exchangers must also declare themselves to BNM, and the central bank will publish the list of declared exchangers on its website for public transparency.",[28,62,64],{"id":63},"what-it-does-not-do","What it does not do",[12,66,67,68,71],{},"BNM has been explicit that the policy does not amount to authorising or licensing crypto businesses, and it reiterated its long-standing position that ",[23,69,70],{},"digital currencies are not legal tender in Malaysia",". The message to the industry is narrower and more practical: if you exchange digital currency, you are now inside the anti-money-laundering perimeter, and the compliance obligations that apply to banks now apply to you.",[12,73,74],{},"For Malaysia's young crypto scene, transparency requirements of this kind are a first step toward legitimacy — and a signal that more comprehensive regulation is on the way.",[76,77,79],"h3",{"id":78},"references","References",[43,81,82,91,98],{},[46,83,84],{},[85,86,90],"a",{"href":87,"rel":88},"https://www.thestar.com.my/business/business-news/2018/02/27/bnm-issues-policy-paper-on-digital-currencies/",[89],"nofollow","The Star — \"Bank Negara keeps tight rein on digital currencies with policy paper\" (27 Feb 2018)",[46,92,93],{},[85,94,97],{"href":95,"rel":96},"https://www.bnm.gov.my/documents/20124/65312/20180515+-+PD+Digital+currency.pdf",[89],"Bank Negara Malaysia — AML/CFT Digital Currencies (Sector 6) policy document",[46,99,100],{},[85,101,104],{"href":102,"rel":103},"https://www.allenandgledhill.com/publication/articles/7902/bank-negara-malaysia-issues-policy-document-for-digital-currencies",[89],"Allen & Gledhill — client update on the policy document",{"title":106,"searchDepth":107,"depth":107,"links":108},"",2,[109,110],{"id":30,"depth":107,"text":31},{"id":63,"depth":107,"text":64,"children":111},[112],{"id":78,"depth":113,"text":79},3,"News","2018-02-27","BNM's new AML/CFT policy for digital currencies takes effect, requiring exchangers converting crypto to or from ringgit to conduct customer due diligence, keep records and file suspicious transaction reports — Malaysia's first binding rules aimed squarely at the crypto sector.","md",{},true,"/blog/bnm-aml-policy-digital-currencies-2018",{"title":5,"description":116},"blog/bnm-aml-policy-digital-currencies-2018","blog","skFje5LBtUngBTGDZC_aHJveBGJRFQwVbDJczjLYqrY",1784183600708]