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<p>The European Union's Fourth Anti Money Laundering Directive (4MLD) was implemented
into UK legislation by 'The Money Laundering, Terrorist Financing and Transfer of
Funds (Information on the Payer) Regulations 2017', which came in to force on 26 June
2017. Digital currency exchanges are not regulated for the purposes of 4MLD, so there
is no requirement to undertake Customer Due Diligence for trade and investment in
digital currencies at present.</p><p> </p><p>The government has however committed
to bringing digital currencies into the scope of anti-money laundering and counter
terrorist financing (AML/CTF) regulation. Provisional political agreement has recently
been reached at EU-level to amend 4MLD to bring digital currency exchange platforms
and custodian wallet providers into the AML/CTF regime.</p><p> </p><p>These amendments
will require Member States to oblige these entities to conduct customer due diligence
when establishing a business relationship, when carrying out occasional transactions
of €15,000 or more, when carrying out a transfer of funds exceeding €1,000, where
there is a suspicion of money laundering or terrorist financing, and when there are
doubts about the veracity or adequacy of previously obtained customer identification
data.</p>
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