Article 17 Transfers of crypto-assets with missing or incomplete information on the originator or the beneficiary

Given the potential threat of money launderingmeans the money laundering activities referred to in Article 1(3) and (4) of Directive (EU) 2015/849; and terrorist financingmeans terrorist financing as defined in Article 1(5) of Directive (EU) 2015/849; presented by anonymous transfers, it is appropriate to require payment service providersmeans the categories of payment service provider referred to in Article 1(1) of Directive (EU) 2015/2366, natural or legal persons benefiting from a waiver pursuant to Article 32 thereof and legal persons benefiting from a waiver pursuant to Article 9 of Directive 2009/110/EC, providing transfer of funds services; to request information on the payermeans a person that holds a payment account and allows a transfer of funds from that payment account or, where there is no payment account, that gives a transfer of funds order; and the payeemeans a person that is the intended recipient of the transfer of funds; and to require crypto-asset service providersmeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; to request information on the originatormeans a person that holds a crypto-asset account with a crypto-asset service provider, a distributed ledger address or a device allowing the storage of crypto-assets, and allows a transfer of crypto-assets from that account, distributed ledger address, or device, or, where there is no such account, distributed ledger address, or device, a person that orders or initiates a transfer of crypto-assets; and the beneficiarymeans a person that is the intended recipient of the transfer of crypto-assets;. In line with the risk-based approach developed by FATF, it is appropriate to identify areas of higher and lower risk, with a view to better targeting the risk of money launderingmeans the money laundering activities referred to in Article 1(3) and (4) of Directive (EU) 2015/849; and terrorist financingmeans terrorist financing as defined in Article 1(5) of Directive (EU) 2015/849;. Accordingly, the crypto-asset service providermeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; of the beneficiarymeans a person that is the intended recipient of the transfer of crypto-assets;, the payment service providermeans the categories of payment service provider referred to in Article 1(1) of Directive (EU) 2015/2366, natural or legal persons benefiting from a waiver pursuant to Article 32 thereof and legal persons benefiting from a waiver pursuant to Article 9 of Directive 2009/110/EC, providing transfer of funds services; of the payeemeans a person that is the intended recipient of the transfer of funds;, the intermediary payment service providermeans a payment service provider that is not the payment service provider of the payer or of the payee and that receives and transmits a transfer of funds on behalf of the payment service provider of the payer or of the payee or of another intermediary payment service provider; and the intermediary crypto-asset service providermeans a crypto-asset service provider that is not the crypto-asset service provider of the originator or of the beneficiary and that receives and transmits a transfer of crypto-assets on behalf of the crypto-asset service provider of the originator or of the beneficiary, or of another intermediary crypto-asset service provider; should have effective risk-based procedures that apply where a transfer of fundsmeans any transaction at least partially carried out by electronic means on behalf of a payer through a payment service provider, with a view to making funds available to a payee through a payment service provider, irrespective of whether the payer and the payee are the same person and irrespective of whether the payment service provider of the payer and that of the payee are one and the same, including:a credit transfer as defined in Article 4, point (24), of Directive (EU) 2015/2366;a direct debit as defined in Article 4, point (23), of Directive (EU) 2015/2366;a money remittance as defined in Article 4, point (22), of Directive (EU) 2015/2366, whether national or cross-border;a transfer carried out using a payment card, an electronic money instrument, a mobile phone or any other digital or IT prepaid or postpaid device with similar characteristics; lacks the required information on the payermeans a person that holds a payment account and allows a transfer of funds from that payment account or, where there is no payment account, that gives a transfer of funds order; or the payeemeans a person that is the intended recipient of the transfer of funds;, or where a transfer of crypto-assetsmeans any transaction with the aim of moving crypto-assets from one distributed ledger address, crypto-asset account or other device allowing the storage of crypto-assets to another, carried out by at least one crypto-asset service provider acting on behalf of either an originator or a beneficiary, irrespective of whether the originator and the beneficiary are the same person and irrespective of whether the crypto-asset service provider of the originator and that of the beneficiary are one and the same; lacks the required information on the originatormeans a person that holds a crypto-asset account with a crypto-asset service provider, a distributed ledger address or a device allowing the storage of crypto-assets, and allows a transfer of crypto-assets from that account, distributed ledger address, or device, or, where there is no such account, distributed ledger address, or device, a person that orders or initiates a transfer of crypto-assets; or the beneficiarymeans a person that is the intended recipient of the transfer of crypto-assets;, in order to allow that service provider to decide whether to execute, reject or suspend that transfer and to determine the appropriate follow-up action to take.

Crypto-asset service providersmeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation;, like all obliged entities, should assess and monitor the risk related to their clients, products and delivery channels. Crypto-asset service providersmeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; should also assess the risk related to their transactions, including where performing transfers to or from self-hosted addresses. In the event that the crypto-asset service providermeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; is or becomes aware that the information on the originatormeans a person that holds a crypto-asset account with a crypto-asset service provider, a distributed ledger address or a device allowing the storage of crypto-assets, and allows a transfer of crypto-assets from that account, distributed ledger address, or device, or, where there is no such account, distributed ledger address, or device, a person that orders or initiates a transfer of crypto-assets; or beneficiarymeans a person that is the intended recipient of the transfer of crypto-assets; using the self-hosted addressmeans a distributed ledger address not linked to either of the following:a crypto-asset service provider;an entity not established in the Union and providing services similar to those of a crypto-asset service provider; is inaccurate, or where the crypto-asset service providermeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; encounters unusual or suspicious patterns of transactions or situations of higher risks of money launderingmeans the money laundering activities referred to in Article 1(3) and (4) of Directive (EU) 2015/849; and terrorist financingmeans terrorist financing as defined in Article 1(5) of Directive (EU) 2015/849; associated with transfers involving self-hosted addresses, that crypto-asset service providermeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; should implement, where appropriate, enhanced due diligence measures to manage and mitigate the risks appropriately. The crypto-asset service providermeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; should take those circumstances into account when assessing whether a transfer of crypto-assetsmeans any transaction with the aim of moving crypto-assets from one distributed ledger address, crypto-asset account or other device allowing the storage of crypto-assets to another, carried out by at least one crypto-asset service provider acting on behalf of either an originator or a beneficiary, irrespective of whether the originator and the beneficiary are the same person and irrespective of whether the crypto-asset service provider of the originator and that of the beneficiary are one and the same;, or any related transaction, is unusual and whether it is to be reported to the Financial Intelligence Unit (FIU) in accordance with Directive (EU) 2015/849.

The provisions on transfers of fundsmeans any transaction at least partially carried out by electronic means on behalf of a payer through a payment service provider, with a view to making funds available to a payee through a payment service provider, irrespective of whether the payer and the payee are the same person and irrespective of whether the payment service provider of the payer and that of the payee are one and the same, including:a credit transfer as defined in Article 4, point (24), of Directive (EU) 2015/2366;a direct debit as defined in Article 4, point (23), of Directive (EU) 2015/2366;a money remittance as defined in Article 4, point (22), of Directive (EU) 2015/2366, whether national or cross-border;a transfer carried out using a payment card, an electronic money instrument, a mobile phone or any other digital or IT prepaid or postpaid device with similar characteristics; and transfers of crypto-assetsmeans any transaction with the aim of moving crypto-assets from one distributed ledger address, crypto-asset account or other device allowing the storage of crypto-assets to another, carried out by at least one crypto-asset service provider acting on behalf of either an originator or a beneficiary, irrespective of whether the originator and the beneficiary are the same person and irrespective of whether the crypto-asset service provider of the originator and that of the beneficiary are one and the same; in relation to which information on the payermeans a person that holds a payment account and allows a transfer of funds from that payment account or, where there is no payment account, that gives a transfer of funds order; or the payeemeans a person that is the intended recipient of the transfer of funds; or the originatormeans a person that holds a crypto-asset account with a crypto-asset service provider, a distributed ledger address or a device allowing the storage of crypto-assets, and allows a transfer of crypto-assets from that account, distributed ledger address, or device, or, where there is no such account, distributed ledger address, or device, a person that orders or initiates a transfer of crypto-assets; or the beneficiarymeans a person that is the intended recipient of the transfer of crypto-assets; is missing or incomplete, and in relation to which transfers of crypto-assetsmeans any transaction with the aim of moving crypto-assets from one distributed ledger address, crypto-asset account or other device allowing the storage of crypto-assets to another, carried out by at least one crypto-asset service provider acting on behalf of either an originator or a beneficiary, irrespective of whether the originator and the beneficiary are the same person and irrespective of whether the crypto-asset service provider of the originator and that of the beneficiary are one and the same; are required to be considered suspicious based on the origin or destination of the crypto-assetsmeans a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114, except where falling within the categories listed in Article 2(2), (3) and (4) of that Regulation or otherwise qualifying as funds; concerned, apply without prejudice to any obligations on payment service providersmeans the categories of payment service provider referred to in Article 1(1) of Directive (EU) 2015/2366, natural or legal persons benefiting from a waiver pursuant to Article 32 thereof and legal persons benefiting from a waiver pursuant to Article 9 of Directive 2009/110/EC, providing transfer of funds services;, intermediary payment service providersmeans a payment service provider that is not the payment service provider of the payer or of the payee and that receives and transmits a transfer of funds on behalf of the payment service provider of the payer or of the payee or of another intermediary payment service provider;, crypto-asset service providersmeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114, where performing one or more crypto-asset services as defined in Article 3(1), point (16), of that Regulation; and intermediary crypto-asset service providersmeans a crypto-asset service provider that is not the crypto-asset service provider of the originator or of the beneficiary and that receives and transmits a transfer of crypto-assets on behalf of the crypto-asset service provider of the originator or of the beneficiary, or of another intermediary crypto-asset service provider; to reject or suspend transfers of fundsmeans any transaction at least partially carried out by electronic means on behalf of a payer through a payment service provider, with a view to making funds available to a payee through a payment service provider, irrespective of whether the payer and the payee are the same person and irrespective of whether the payment service provider of the payer and that of the payee are one and the same, including:a credit transfer as defined in Article 4, point (24), of Directive (EU) 2015/2366;a direct debit as defined in Article 4, point (23), of Directive (EU) 2015/2366;a money remittance as defined in Article 4, point (22), of Directive (EU) 2015/2366, whether national or cross-border;a transfer carried out using a payment card, an electronic money instrument, a mobile phone or any other digital or IT prepaid or postpaid device with similar characteristics; and transfers of crypto-assetsmeans any transaction with the aim of moving crypto-assets from one distributed ledger address, crypto-asset account or other device allowing the storage of crypto-assets to another, carried out by at least one crypto-asset service provider acting on behalf of either an originator or a beneficiary, irrespective of whether the originator and the beneficiary are the same person and irrespective of whether the crypto-asset service provider of the originator and that of the beneficiary are one and the same; which breach a provision of civil, administrative or criminal law.