Transfer Regulation for crypto assets is in force: Due to the increased risk of money laundering and terrorist financing in transactions with crypto assets, the corresponding application of the Money Transfer Regulation (GTVO) is ordered with effect from 01.10.2021. This will lead to new record-keeping requirements for crypto obligors as of 01.10.2021.

Crypto service providers who transfer crypto assets on behalf of an order taker, to the crypto service provider acting on the recipient’s side, must transmit the following details simultaneously and securely:

Name details,

address and

the account number (e.g. the public key) of the ordering party and

the name and

the account number (e.g. public key) of the beneficiary.

 

The crypto service provider acting on behalf of the beneficiary must ensure that it also receives and stores the information on the principal and beneficiary.

The complete traceability of the parties involved in a transfer of crypto assets serves to prevent, detect and investigate money laundering and terrorist financing as well as to monitor the evasion of sanctions.

The Regulation also requires an obligor to ensure that information on the beneficiary or originator of a transfer is collected when the transfer is made from or to an electronic purse that is not managed by a crypto value service provider, even if a transfer of data is not an option in this case.

Transfer regulation for crypto values is in force: The new transfer regulation for crypto values is available for download on the homepage of the BMF.

https://www.bundesfinanzministerium.de/Content/DE/Gesetzestexte/Gesetze_Gesetzesvorhaben/Abteilungen/Abteilung_VII/19_Legislaturperiode/2021-09-29-KryptoWTransferV/0-Verordnung.html

 

Transfer regulation for crypto assets is in force: Waiver regulation § 5 KryptoWTransferVO

Obligated persons who, at the time this Ordinance enters into force, conduct banking transactions within the meaning of section 1(1) sentence 2 of the German Banking Act, provide financial services within the meaning of section 1(1a) sentence 2 of the German Banking Act or securities services within the meaning of section 2(2) to (4) of the German Securities Institutions Act in relation to crypto assets, and who are unable to fulfil the obligations under sections 3 and 4 in whole or in part for reasons for which they are not responsible, shall notify the competent supervisory authority under section 50(1) of the German Money Laundering Act thereof by 30 November 2021. November 2021 and give reasons by 31 December 2021.

The justification shall include information on the reason for the impediment and on the measures taken to remove the impediment. In addition, the period of time in which the impediment is expected to be removed shall be indicated and any other risk-appropriate measures taken in the meantime in the implementation of transfers shall be specified.

The period specified shall not exceed twelve months. A single extension of this period by a further twelve months shall be permissible if a notice of extension accompanied by a statement of reasons is submitted before the expiry of the first twelve-month period and if the reason for the impediment continues to exist.

The competent supervisory authority pursuant to section 50 number 1 of the Money Laundering Act shall confirm receipt of an initial notification pursuant to subsection (1) and a notification of extension pursuant to subsection (2) sentence 4 and shall examine whether the formal requirements have been met and whether the reasons for obstruction presented are sufficiently plausible.

If this is not the case, it shall notify the obligated party within two months of receipt of the justification or the extension notification.

 

Important regulations of the KryptoWTransferV + Transfer Ordinance for Crypto Securities is in force

§ 3 Obligation to collect, store and transmit data for transfers between crypto value service providers

(1) For obligated parties making a transfer for the payer, the provisions for obligations of the payer’s payment service provider under Articles 4 and 6 of the Money Transfer Regulation shall apply mutatis mutandis if only crypto value service providers are involved in the transfer for the payer and the payee.

(2) For obligors receiving a transfer on behalf of the beneficiary, the provisions for obligations of the payment service provider of the beneficiary pursuant to Articles 7, 8 and 9 of the Money Transfer Regulation shall apply mutatis mutandis if only crypto value service providers are involved in the transfer on behalf of the payer and the beneficiary.

 

§ 4 Obligation to collect and store data for transfers not exclusively involving crypto value service providers

(1) Obligated persons who carry out a transfer on behalf of the payer without a crypto value service provider acting on behalf of the beneficiary of that transfer shall identify and assess the risk of abuse for the purposes of money laundering and terrorist financing associated with the transfer and take risk-appropriate measures to manage and mitigate the risks of money laundering and terrorist financing.

(2) Obligated persons who receive a transfer on behalf of the beneficiary without a crypto value service provider acting on behalf of the originator of that transfer shall identify and assess the risk of money laundering and terrorist financing abuse associated with the transfer and take risk-appropriate measures to manage and mitigate the risks of money laundering and terrorist financing.

(3. For the purposes of paragraphs 1 and 2, risk-appropriate measures shall be those which are commensurate with the identified money laundering and terrorist financing risk of the transfer and which ensure the traceability of the transfer.

In particular, the measure of collecting, storing and verifying the name and address of the beneficiary or the principal for whom no crypto value service provider is acting in the transfer and who is not a contractual partner of the obliged party shall be risk-appropriate.

(4) Paragraphs 1 to 3 shall apply mutatis mutandis with regard to the beneficial owner, provided that the beneficial owner is not identical with the principal or beneficiary.

 

Application of the provisions of the Money Transfer Ordinance + Transfer Ordinance for crypto assets is in force
Transfer Regulation for Crypto Assets is in force: The new Transfer Regulation for Crypto Assets also requires compliance with Articles 4 + 6 of the Money Transfer Regulation.

 

Article 4

Information to be provided for transfers of funds

(1. The payment service provider of the payer shall ensure that, in the case of transfers of funds, the following information on the

information on the payer for transfers of funds:

(a) the name of the payer
(b) the payment account number of the payer; and
(c) the payer’s address, the number of an official personal document of the payer, the customer number or the date and place of birth of the payer.
(2. The payment service provider of the payer shall ensure that the following information on the payee is transmitted in the case of transfers of funds:

(a) the name of the payee; and
(b) the number of the payee’s payment account.

By way of derogation from paragraph 1(b) and paragraph 2(b), where a transfer of funds is not made from or to a payment account, the payment service provider of the payer shall ensure that an individual transaction identification number is provided instead of the payment account number(s).

(4. Before carrying out transfers of funds, the payment service provider of the payer shall verify the accuracy of the information referred to in paragraph 1 by using documents, data or information from a reliable and independent source.

(5. The verification referred to in paragraph 4 shall be deemed to have been carried out if:

(a) the identity of the principal has been verified in accordance with Article 13 of Directive (EU) 2015/849 and the data obtained from that verification has been stored in accordance with Article 40 of that Directive; or
(b) Article 14(5) of Directive (EU) 2015/849 applies to the contracting authority.
(Without prejudice to the exceptions provided for in Articles 5 and 6, the payment service provider of the payer shall not carry out transfers of funds until full compliance with this Article has been ensured.

 

Article 6

Transfers of funds outside the Union

1. In the case of a batch file transfer from a single payer to payees whose payment service providers are located outside the Union, Article 4(1) shall not apply to the individual orders bundled in that batch file transfer, provided that the batch file transfer contains the information set out in Article 4(1), (2) and (3), that that information has been verified in accordance with Article 4(4) and (5) and that the individual orders are marked with the number of the payer’s payment account or, where Article 4(3) applies, the individual transaction identification number.

By way of derogation from Article 4(1) and, where applicable, without prejudice to the information required under Regulation (EU) No 260/2012, where the payment service provider of the payee is located outside the Union, for transfers of funds of up to EUR 1 000 where there is no indication that there is a link with other transfers of funds which together with the transfer of funds in question exceed EUR 1 000, at least the following information shall be provided:

(a) the names of the payer and the payee; and

(b) the payment account numbers of the payer and the payee or, where Article 4(3) applies, the individual transaction identification number.

 

By way of derogation from Article 4(4), the payment service provider of the payer shall not be required to verify the accuracy of the information on the payer referred to in this paragraph, unless the payment service provider of the payer has

(a) received the funds to be transferred in the form of cash or anonymous electronic money; or

(b) reasonable grounds to suspect money laundering or terrorist financing.

 

Transfer Regulation for crypto assets is in force: The new Transfer Regulation for crypto assets also requires compliance with Articles 7 + 8 + 9 Money Transfer Regulation.

Article 7 Detection of missing information on the payer or the payee.

(1. The payment service provider of the payee shall establish effective procedures to determine whether the payer and payee information fields in the messaging or payment and settlement system used to execute the transfer of funds have been completed using the characters or entries permitted in accordance with the agreements governing that system.

 

(2. The payment service provider of the payee shall establish effective procedures, including, where appropriate, ex post or real-time monitoring, to determine whether the following information on the payer or the payee is missing:

(a) in the case of transfers of funds where the payment service provider of the payer is located in the Union, the information referred to in Article 5;

(b) in the case of transfers of funds where the payment service provider of the payer is situated outside the Union, the information referred to in Article 4(1) and (2);

(c) in the case of batch file transfers where the payment service provider of the payer is situated outside the Union, the information referred to in Article 4(1) and (2) in relation to the batch file transfer.

 

(3. In the case of transfers of funds exceeding EUR 1 000, whether such transfers are made in a single transfer or in several transfers that appear to be linked, the payment service provider of the payee shall, before crediting the payee’s payment account or making the funds available to the payee, verify the accuracy of the information on the payee referred to in paragraph 2 of this Article on the basis of documents, data or information from a reliable and independent source, without prejudice to the requirements laid down in Articles 69 and 70 of Directive 2007/64/EC.

(4 ) In the case of transfers of funds of up to EUR 1 000 where there is no evidence of a link with other transfers of funds which together with the transfer of funds in question exceed EUR 1 000, the payment service provider of the payee shall not be required to verify the accuracy of the information on the payee unless the payment service provider of the payee

(a) pays out the funds in the form of cash or anonymous electronic money; or

(b) has reasonable grounds to suspect money laundering or terrorist financing.

 

(5) The verification referred to in subsections (3) and (4) shall be deemed to have been carried out if:

(a) the identity of the beneficiary has been verified in accordance with Article 13 of Directive (EU) 2015/849 and the data obtained from that verification has been stored in accordance with Article 40 of that Directive; or

(b) Article 14(5) of Directive (EU) 2015/849 applies to the beneficiary.

 

Article 8 Transfers of funds with missing or incomplete information on the payer or the payee

(1. The payment service provider of the payee shall establish effective risk-based procedures, including procedures based on the risk-based framework referred to in Article 13 of Directive (EU) 2015/849, to determine whether a transfer of funds lacking the required complete information on the payer and on the payee should be executed, rejected or suspended and the appropriate follow-up action to be taken.

Where, on receipt of transfers of funds, the payment service provider of the payee establishes that the information referred to in Article 4(1) or (2), Article 5(1) or Article 6 is missing or incomplete or has not been completed, as required by Article 7(1), using the letters or entries permitted in accordance with the messaging or payment and settlement system conventions, the payment service provider of the payee shall, on a risk-based basis, reject the transfer order or request the prescribed information on the payer and the payee before or after crediting the payee’s payment account or making the funds available to the payee.

(2. Where a payment service provider repeatedly fails to provide the required information on the payer or the payee, the payment service provider of the payee shall take action, which may initially include warnings and setting of deadlines, before either rejecting all future transfer orders from that payment service provider or restricting or terminating its business relationship with that payment service provider.

The payment service provider of the payee shall report that failure and the action taken to the authority responsible for monitoring compliance with anti-money laundering and counter-terrorist financing rules.

 

Article 9 Assessment and suspicious activity reporting

When assessing whether a transfer of funds or a related transaction is suspicious and whether it should be reported to the FIU in accordance with Directive (EU) 2015/849, the payment service provider of the beneficiary shall take into account as a factor whether information on the payer or the beneficiary is missing or incomplete.

 

Transfer Regulation for crypto assets is in force: seminars for crypto obligated parties

Fit & Proper as a business leader in a financial company: These are the skills you need. BaFin sets high standards of expertise for managing directors working in a financial company regulated by the KWG, ZAG or KAGB. BaFin’s assessment covers the professional suitability, reliability and time availability of a managing director. Professional suitability to manage an institution within the meaning of the Banking Act and the ZAG means that a business manager has sufficient theoretical and practical knowledge of the relevant business as well as management experience.

The requirements for the professional suitability of a manager are measured by the size and structure of the institution as well as the type and variety of business conducted by the institution and are assessed on a case-by-case basis.

§ Section 25c (4) KWG requires regular attendance of training courses. The KWG obliges institutions to provide human and financial resources to facilitate the introduction of members of the management to their office and to provide the
and to provide the training necessary to maintain their professional competence.

Induction into office should be timely and support an understanding of the institution’s structure, business model, risk profile and governance arrangements, and the role of individual directors therein, and promote awareness of the benefits of diversity.

BaFin assumes that the institution identifies the need for further training, which can be met through training of the entire body as well as for individual members.

Book the seminar Managing Director in the Financial Enterprise with product no. B 19 directly online; conveniently and easily with the seminar form online.

 

Transfer Regulation for crypto assets is in force

 

Proof of expertise with the course: Managing Director in Financial Enterprises:

# Newly appointed managing directors and board members of financial companies and crypto companies
# Update for managing directors and board members of finance companies and crypto companies

 

Your benefits with the course: Managing Director in Financial Companies

Day 1:

# Rights and duties of the managing director at financial companies

# Audit-proof organisation of the management board

Day 2:

# Balance sheet knowledge for managing directors in financial companies

# Risk Management in Finance Companies

 

Programme 1st day of the course: Managing Director in a Finance Company

Rights and duties of the managing director in a financial company

> Knowing the most important tasks from the KWG

    • Discussion of the business and risk strategy
    • The most important regulatory key figures

> Transfer regulation for crypto assets leads to new duties

> Liability trap: material risks and risk decisions that deviate from them

> Designing remuneration systems for managing directors and employees in an audit-proof manner

> Self-Assessment Supervisory Board and Executive Board

    • Liability of the Managing Director – Overview of Duties and Risks
    • The managing director’s contract: Which regulations should be made mandatory

Participants receive the S+P Tool Box:

> S+P Check: Propriety of the management board

> S+P Dashboard: Reporting obligations for managing directors and the supervisory board

 

Programme 2nd day of the course: Managing Director in a Financial Company

Balance sheet knowledge + risk management for the managing director in financial companies

> The annual financial statement as an information tool

    • The most important regulations of the RechKredV and the HGB for financial companies
    • Overview of balance sheet items
    • Valuation regulations for fixed and current assets
    • Scrutinising sources of income and their changes

> Compliance with banking supervisory regulations

> Wirecard & Co.: New compliance obligations for managing directors

> Minimum requirements for risk management:

    • Which due diligence obligations are mandatory for managing directors and supervisory boards?
    • Major innovations in MaRisk and the EBA guidelines
    • New tasks for MaRisk functions

 

In addition to the Managing Director course, participants were also interested in the following courses:

Seminare Aufsichtsrat AddOn

Compliance und Risk-Management für Unternehmer

Lehrgang Zertifizierter Aufsichtsrat

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