AML/CFT for crypto service providers
How does MAS regulate AML/CFT measures for DPT service providers?
MAS has prescribed AML/CFT measures specifically for DPT service providers. These are different to the measures prescribed to other payment service activities such as money transfer or account issuance services.
According to MAS (FAQs)
last revised 31 March 2021
31.3 MAS regulates Digital Payment Token (DPT) Service Providers for ML/TF risks. In general, the AML/CFT measures to be imposed are similar to existing AML/CFT requirements on other regulated entities. These requirements take into account the international standards and guidance that were finalised by the Financial Action Task Force (FATF) in June 2019. The PS Act requires Digital Payment Token (DPT) intermediaries that buy, sell or facilitate the exchange of DPTs for fiat currencies or other DPTs to identify and verify their customers, monitor transactions, keep records and to report suspicious transactions to the Suspicious Transaction Reporting Office.
31.4 Where DPT service providers also facilitate the transfer of DPT or provide custodian wallet services as part of their business, MAS intends to require that they apply AML/CFT measures to mitigate the risks posed by such services.