The Office of Financial sanctions Implementation (OFSI) has issued guidance For Service providers in The crypto market, stating relevant firms must report suspected sanctions breaches to authorities.
– The updated guidance brings crypto exchanges and wallet providers in line with The reporting obligations faced by banks and other Financial institutions.
– under The new guidance, cryptoasset exchanges and custodian wallet providers must report to OFSI if there is reasonable cause to suspect that an individual, entity, or ship is a designated person, or if that designated person is a customer and frozen assets are held For them.
– Failure to report clients designated For sanctions to OFSI will be a criminal offense.
– According to a red alert update issued by The Joint money Laundering Intelligence Taskforce (JMLIT), designated persons are expected to be using crypto services, associates, and close contacts to evade sanctions, move significant sums of money, and protect their personal or commercial holdings.