Article 40 — Measures to mitigate risks in relation to transactions with a self-hosted address
Financial crimeLevel 1RegulationAMLRIn forceOfficial source
40(1)Copy link
1.Crypto-asset service providers shall identify and assess the risk of money laundering and financing of terrorism associated with transfers of crypto-assets directed to or originating from a self-hosted address. To that end, crypto-asset service providers shall have in place internal policies, procedures and controls.
Crypto-asset service providers shall apply mitigating measures commensurate with the risks identified. Those mitigating measures shall include one or more of the following:
40(1)(a)
(a)taking risk-based measures to identify, and verify the identity of, the originator or beneficiary of a transfer made from or to a self-hosted address or beneficial owner of such originator or beneficiary, including through reliance on third parties;
Copy link40(1)(b)
(b)requiring additional information on the origin and destination of the crypto-assets;
Copy link40(1)(c)
(c)conducting enhanced ongoing monitoring of transactions with a self-hosted address;
Copy link40(1)(d)
(d)any other measure to mitigate and manage the risks of money laundering and financing of terrorism as well as the risk of non-implementation and evasion of targeted financial sanctions.
Copy link40(2)Copy link
2.By 10 July 2027, AMLA shall issue guidelines to specify the mitigating measures referred to in paragraph 1, including: