AML/KYC procedures for cryptocurrency companies in Estonia

Mar 7, 2023 | Business, Cryptocurrency, Estonia

Cryptocurrency companies operating in Estonia must comply with anti-money laundering (AML) and customer knowledge (KYC) regulations. These regulations aim to prevent the use of cryptocurrencies for illegal activities, such as money laundering and terrorist financing.

To comply with AML/KYC regulations, cryptocurrency companies must implement robust procedures to identify and verify the identity of their customers, monitor transactions, and report suspicious activity. These procedures should be designed to mitigate the risks associated with cryptocurrency transactions and ensure compliance with local laws and regulations.

BBCTallinn, a consulting firm providing accounting, business formation, and legal services in Estonia, can help cryptocurrency companies with AML/KYC compliance. Our experienced consultants can help draft procedural rules tailored to the specific needs of cryptocurrency businesses.

These procedural rules should include:

Customer Due Diligence (CDD)

This includes verifying the identity of the customer and assessing the risks associated with the business relationship. CDD procedures should include collecting and reviewing customer identification documents and conducting background checks.

Transaction monitoring

Cryptocurrency firms must monitor transactions to identify suspicious activity, such as large and unusual transactions, and report them to the appropriate authorities. Monitoring procedures should be automated, and employees should be trained to identify and report suspicious transactions.

Risk Assessment

Cryptocurrency companies must conduct risk assessments to identify and evaluate the risks associated with their customers, transactions, and operations. Risk assessments should be conducted regularly and updated as needed.

Reporting requirements

Cryptocurrency companies must report suspicious transactions to the Financial Intelligence Unit (FIU) in Estonia. Reporting procedures should be clearly defined, and employees should be trained to recognise and report suspicious transactions immediately.

By complying with AML/KYC regulations, cryptocurrency companies can build trust with their customers, reduce the risks of regulatory penalties and reputational damage, and contribute to the development of a more transparent and secure cryptocurrency industry. Contact BBCTallinn to learn more about our AML/KYC compliance services for cryptocurrency companies in Estonia.

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