Section 9Part 2 — Registered Persons and Virtual Asset Service Licensees
General requirements for virtual asset service providers
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The Authority may, at the virtual asset service provider’s expense, require a virtual asset service provider to provide an auditor’s report , prepared by an independent auditor, on the anti-money laundering systems and procedures for compliance with the Anti-Money Laundering Regulations (2023 Revision).
A virtual asset service provider shall prepare accounts annually and make the accounts available for inspection upon request by the Authority at the registered office at such reasonable time as the Authority may specify.
A vir tual asset service provider shall —
ensure that —
its senior officers and trustees are fit and proper persons to hold the respective positions; and
its beneficial owners are fit and proper persons to have such control or ownership;
take such steps as may be necessary to protect and secure the personal data and virtual assets of its clients; Virtual Asset (Service Providers) Act (2024 Revision) Section
ensure that all communications relating to the virtual asset service are accurate;
comply with the Anti-Money Laundering Regulations (2023 Revision) and other laws relating to the combating of money laundering, terrorist financing and proliferation financing;
for the purpose of ensuring compliance with the Anti-Money Laundering Regulations (2023 Revision) , put in place anti-money laundering systems and procedures; and
designate an employee as the officer with responsibility for the procedures for combating money laundering, terrorist financing and proliferation financing.
A virtual asset service provider shall —
have a registered office in the Islands;
provide documents, statements or such other information that may be required by the Authority to enable it to properly perform any of its functions under this Act ;
notify the Authority of —
any licence or registration in another jurisdiction;
the opening of an office or establishing a physical presence in another jurisdiction;
any penalties that are imposed or enforcement actions taken against it in another jurisdiction; or
the holding of, or the acquisition of, a controlling interest in another person or legal arrangement engaged in virtual asset service; and
provide such other information as may be specified by the Authority.
When performing a transfer of virtual assets, a virtual asset service provider shall collect and maintain information on the beneficiary and originator of the transfer in accordance with the Anti-Money Laundering Regulations (2023 Revision) and any additional information specified by the Authority, for all transfers performed and comply with any other requirements outlined therein and the records shall —
be made available, at the request of the Authority or any competent authority, through its registered office; and
where a request for information is made under paragraph (a), be provided within forty-eight hours of receipt of the request.
A virtual asset service provider shall not engage in securities investment business unless the person is registered or is a licensee under the Securities Investment Business Act (2020 Revision) or has been exempted from registration Section 10 Virtual Asset (Service Providers) Act (2024 Revision) or licensing by the Authority under the Securities Investment Business Act (2020 Revision) . 8
The Authority may impose additional requirements specific to a virtual asset service on a virtual asset service provider to ensure compliance with the Anti- Money Laundering Regulations (2023 Revision).
A virtual asset service provider shall not appoint —
a senior officer or trustee; or
an anti-money laundering compliance officer, without the prior approval of the Authority.
The Authority shall not grant the approval specified in subsection (8) where a senior officer, trustee or anti - money laundering compliance officer is not a fit and proper person .
For the purposes of this section, “ accounts ” include unaudited reports.
A person who contravenes subsections (1) and (8) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars.