The VASP National Risk Assessment includes:

• residual risk and recommended actions;
• threats;
• vulnerabilities;
• status of recommended actions relating to VASPs in other published risk documents.

The guidance sets out how VASPs can ensure compliance with the travel rule under a range of circumstances.

Among other areas, the note covers:

• Required information to accompany transfers between VASPs
• What to do when transferring virtual assets to and from jurisdictions without the Travel Rule
• Determining transaction values
• Transfers between different legal entities within the same group
• Transfers to and from non-VASPs.

“Today’s announcement of co‑ordinated international action on cryptoassets is a major step forward, marking another important milestone towards the widespread and co-ordinated approach to combat tax evasion through greater transparency and exchange of information,” Secretary-General Cormann said.

“We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on cryptoasset reporting a reality. The international community can count on the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes to ensure that the tax transparency architecture remains both up-to-date and effective going forward.”

The Crypto-Asset Reporting Framework (CARF) is a key component of the International Standards for Automatic Exchange of Information in Tax Matters developed by the OECD under a G20 mandate. It provides for the automatic exchange of tax-relevant information on cryptoassets and comes against the backdrop of a rapid adoption of the use of cryptoassets for a wide range of investment and financial uses.

Proposed changes include:

• New guidance in relation to correspondent banking and similar relationships with regards to Virtual Asset Providers (VASPs)
• New Code of Practice and guidance in respect of declassification of Politically Exposed Persons (PEPs)
• Expanded guidance in relation to suspicious activity reporting by Non-Profit Organisations (NPOs)
• Housekeeping matters following the coming into effect of the Proceeds of Crime (Financial Intelligence) (Amendment) (Jersey) Regulations 2022.

The sections affected are: 2, 3, 4, 6-13, 15-17, and also the Glossary.

Deadline for comments is 29 August 2023. 

This will require the following:

• If the VASP was previously registered as a Virtual Currency Exchange Business, it will need to complete the registration form available on the Commisson's website. The application will be treated as a notification. There is a transition period running until 30 June 2023.
• If the VASP has previously notified the Commission to operate as a Virtual Currency Exchange business benefitting from the “turnover” exemption (as contained within the Proceeds of Crime (Supervisory Bodies) (Virtual Currency Exchange Business) (Exemption) (Jersey) Order 2016, it will need to complete the registration form available on the Commission's website. The application will be treated as a new application. There is a transition period running until 30 June 2023. 
• If the VASP is registered under the Financial Services (Jersey) Law 1998 to conduct financial services business, it will need to complete the registration form in relation to its existing virtual asset service provider activity. The Commission will treat the application as a notification. There is a transition period running until 30 June 2023. 
• If the VASP is a new business (which began operating after 30 January 2023), it must register with the Commission before it begins conducting business. The Commission will treat the application as a new application.

AML Service Providers cannot complete an application on behalf of a VASP, the VASP must complete the application form.