Regulatory Alerts2025-03-24
Guidance Note on AML/CFT Programme Implementation for Virtual Asset Service Providers
The Non-Bank Financial Institution Regulatory Authority of Botswana requires Virtual Asset Service Providers to implement comprehensive anti-money laundering and counter-terrorist financing programmes under the Financial Intelligence Act and Virtual Assets Act. Regulated entities must adopt a risk-based framework mandating periodic institutional risk assessments, independent compliance functions, customer due diligence including the Travel Rule, transaction monitoring, and continuous staff training. Aligning with the sector’s high-risk classification in Botswana’s National Risk Assessment, the guidance directs governing bodies to establish robust control systems and reporting mechanisms to effectively mitigate money laundering, terrorism financing, and proliferation financing vulnerabilities.