Cote d'Ivoire -- Travel Rule Implementation Regulatory Overview

Côte d'Ivoire, as a member of the West African Economic and Monetary Union (UEMOA) and the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), has adopted the FATF Travel Rule through regional frameworks and implementing regulations issued by the Central Bank of West African States (BCEAO), which is the monetary and regulatory authority for UEMOA member states.

Here's a breakdown of the status:

1. Adoption Status and Effective Date

• Adopted: Yes, primarily through the UEMOA regional framework and subsequent BCEAO instructions.

• Key Legislation/Guidance:

  • UEMOA Directive No. 02/2021/CM/UEMOA of 29 March 2021 relating to the fight against money laundering and terrorist financing in the UEMOA region. This directive updates the regional AML/CFT framework to align with the latest FATF Recommendations, including those pertaining to virtual assets and VASPs.
    • URL (Official Journal of UEMOA): While a direct link to the directive's text might require specific access to UEMOA's official journal, references to it are widespread in BCEAO documents.
  • BCEAO Instruction No. 003/2022/RB of 17 November 2022 relating to the prevention of money laundering and terrorist financing by entities subject to the control of the BCEAO. This instruction specifically integrates "virtual asset service providers (PSAVs)" into the scope of regulated entities and details their AML/CFT obligations.
    • URL (BCEAO - often available in regulatory sections): While direct links can be ephemeral, you can often find a listing on the BCEAO website's regulatory texts section. A common search phrase for official documents is "Instruction BCEAO LAB/CFT PSAV."
  • Côte d'Ivoire National Law: While the BCEAO instruction is binding, Côte d'Ivoire also has Law No. 2016-1110 of 8 December 2016 on the fight against money laundering and terrorist financing. This national law provides the overarching legal framework and defines penalties, but the specifics for VASPs are mostly derived from the BCEAO texts. Updates to the national law would ensure full alignment, but the BCEAO regulations are immediately applicable to supervised entities.

• Effective Date: The BCEAO Instruction No. 003/2022/RB became effective upon its publication in November 2022, obliging regulated entities, including PSAVs, to implement the requirements within specified timelines for compliance.

2. Threshold Amounts

The FATF Travel Rule generally requires the collection and transmission of originator and beneficiary information for all virtual asset transfers, regardless of the amount. However, the requirement to transmit this information to the beneficiary VASP (the "Travel Rule" itself) often aligns with the FATF's informal guidance for cross-border transfers:

• For cross-border transfers: The Travel Rule information (originator and beneficiary details) must be transmitted for transfers exceeding EUR 1,000 (or equivalent). Below this threshold, VASPs are still required to collect and hold the information but may not be required to send it with the transfer itself to the beneficiary VASP, unless deemed suspicious.
• For domestic transfers: While the €1,000 threshold is common for cross-border, many jurisdictions, and the spirit of FATF guidance, suggest that for domestic transfers, this information should be collected and retained for all transactions, and transmitted to the beneficiary VASP where possible, especially if the recipient is another VASP. The BCEAO instruction often refers to thresholds for reporting suspicious transactions (e.g., occasional transactions over a certain amount trigger full CDD), but for the Travel Rule itself, the emphasis is on comprehensive data collection.

Specific thresholds for reporting suspicious transactions to the national Financial Intelligence Unit (FIU), the Cellule Nationale de Traitement des Informations Financières (CENTIF) in Côte d'Ivoire, are defined separately and are typically much lower or apply regardless of amount if suspicion exists.

3. Which VASPs are Covered

The BCEAO Instruction No. 003/2022/RB explicitly covers "Prestataires de Services sur Actifs Virtuels (PSAVs)" – Virtual Asset Service Providers. This includes any natural or legal person who conducts, as a business, one or more of the following activities or operations for or on behalf of another natural or legal person:

• Exchange between virtual assets and fiat currencies.
• Exchange between one or more forms of virtual assets.
• Transfer of virtual assets.
• Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.
• Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.

These PSAVs are considered "reporting entities" and are subject to the same AML/CFT obligations as traditional financial institutions under BCEAO supervision.

4. Technical Implementation Requirements

The BCEAO Instruction requires PSAVs to:

• Collect and retain accurate and meaningful originator and beneficiary information for all virtual asset transfers. This information typically includes:
  • Originator Information: Name, account number (or unique transaction identifier), physical address, national identity number (or customer identification number), date and place of birth (for natural persons), or place of registration (for legal entities).
  • Beneficiary Information: Name, account number (or unique transaction identifier), and where applicable, physical address or national identity number (or customer identification number).
• Transmit this information to the beneficiary VASP immediately and securely, along with the virtual asset transfer itself, or through a secure messaging system that ensures the information is received before or at the time of the transfer.
• Conduct due diligence on both the originator and beneficiary, including enhanced due diligence for high-risk transactions.
• Screen transactions for sanctions compliance.
• Maintain records of all transactions and customer information for at least five years.
• Implement risk-based approaches to assess and mitigate ML/TF risks associated with virtual asset activities.

While the BCEAO instruction mandates what information needs to be transmitted, it typically does not prescribe a specific technical solution or protocol. PSAVs are expected to adopt reliable, secure, and interoperable solutions. Global standards like TRISA, OpenVASP, or Travel Rule Protocol (TRP) are examples of solutions that could be utilized, but their use is not explicitly mandated by BCEAO.

5. Penalties for Non-Compliance

Penalties for non-compliance are generally outlined in the national AML/CFT law (Law No. 2016-1110) and the BCEAO's regulatory framework for supervised entities. These can be severe and include:

• Administrative Sanctions: Imposed by the BCEAO or CENTIF. These can range from warnings and reprimands to substantial financial penalties (fines proportional to the severity and duration of the breach, or a percentage of turnover), temporary suspension of activities, or even permanent withdrawal of operating licenses.
• Criminal Sanctions: For severe or repeated breaches, especially those involving intentional facilitation of money laundering or terrorist financing, criminal charges can be brought against individuals (directors, employees) and the entity itself. These can include imprisonment and heavier fines, as defined in the national penal code and AML/CFT law.
• Reputational Damage: Non-compliance can lead to significant damage to a VASP's reputation, loss of customer trust, and difficulty in maintaining banking relationships.

The BCEAO, as the supervisory authority, has the power to conduct inspections, impose corrective measures, and levy fines on regulated entities, including PSAVs, that fail to comply with its instructions regarding AML/CFT.

Disclaimer: This information is for general informational purposes only and does not constitute legal advice. For specific compliance requirements, it is essential to consult the relevant official texts from UEMOA/BCEAO and Côte d'Ivoire, and seek advice from legal professionals specializing in AML/CFT and financial regulations in the region.