Pursuant to Law No. 10961, published last Friday, an important amendment has been introduced to Law No. 7786, concerning the prevention and sanctioning of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction (ML/TF/FPWMD).

In addition to the previously established categories:

1) Financial intermediaries and other entities supervised by the four financial sector authorities (Article 14);

2) Designated Non-Financial Businesses and Professions (DNFBPs), including third-party fund administrators, real estate developers, lenders, casinos, and other entities (Articles 15 and 15 bis),

the reform incorporates a new category of undertakings, subject to registration before SUGEF and full compliance with ML/TF/FPWMD prevention obligations:

3) Virtual Asset Service Providers (VASPs) (new Article 15 quater).

A “virtual asset” is defined as a digital representation of value or funds that can be traded or transferred electronically and may be used for payment or investment purposes.

A “Virtual Asset Service Provider (VASP)” refers to any natural or legal person that, as part of its business activities, engages in the exchange, transfer, custody, safekeeping, administration, or control of virtual assets, or provides related financial services.

Regulated entities may face significant administrative sanctions if they maintain business relationships with parties conducting activities under Articles 15, 15 bis, or 15 quater without the required registration before SUGEF.

This reform will become effective in three months following its publication. Stakeholders are strongly encouraged to closely monitor the issuance of implementing regulations and supervisory guidance.