Cryptocurrencies: Russia

(asked on 2nd March 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of creating additional identification requirements for people making purchases from UK-based businesses using cryptocurrencies to help prevent (a) individuals and (b) the Russian state avoid sanctions related to the war in Ukraine.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 7th March 2022

Under the Money Laundering Regulations, cryptoasset exchanges and custodian wallet providers operating in the UK must conduct customer due diligence checks to verify a customer’s identity and, where applicable, the beneficial owner of the customer, and ascertain the nature of the business relationship or transaction. This includes checking that the prospective customer is not subject to sanctions, and does not intend to use the business relationship or transaction for criminal purposes, such as unlicensed arms dealing. Where the customer is a Politically Exposed Person or is deemed otherwise high-risk of being involved in money-laundering or sanctions evasion, the firm must conduct Enhanced Due Diligence.

These requirements are in line with the globally agreed recommendations of the Financial Action Task Force on Money Laundering and Terrorist Financing. The Financial Conduct Authority has contacted cryptoasset firms to make clear their obligations in relation to preventing sanctions evasion, and the government will continue to consider what more can be done to further reduce the risk of sanctioned individuals or entities using cryptoassets.

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