Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849 (Text with EEA relevance)

Concurrently with the publication of the new Markets in Crypto-Assets Regulation (MiCA) (please see EventID 21482 in this context), a new regulation pertaining to rules governing payment flows in crypto-assets for purposes of preventing money laundering and the financing of terrorism was published in the Official Journal (OJ) of the EU. The new regulation entirely replaces the „old“ Funds Transfer Regulation due to the large number of changes that has been made to bring ALL crypto-assets under the remit of the Funds Transfer Regulation.
Specifically, the new regulation requires crypto-assets services providers (CASPs) to collect and make accessible data concerning the originators and beneficiaries of the transfers of crypto-assets they operate. In detail, they are required to put in place processes (and monitor such) to ensure that – when processing transactions – transfer information such as the name of the originator and beneficiary, customer identification numbers, customer identification numbers, addresses, etc. are available. Additionally, the new regulation describes how CASPs shall proceed, if any of the required information is missing, e.g. by requesting the missing information or even rejecting the transfer altogether. The regulation explicitly notes in this context, that any such missing information transfers may give rise to filing a suspicious activities report with the Financial Intelligence Unit (FIU).
Furthermore, the new regulation sets out recordkeeping obligations as to the transfer of assets between originators and beneficiaries which specifically require CASPs to maintain and store any such data for a period of five years. Finally, the regulation sets out enforcement and penalty provisions and corresponding reporting and notification requirements of competent authorities.