FIC: Directive 9 of 2024 on implementation of travel rule to enhance transparency in crypto asset transactions

FIC: Directive 9 of 2024 on implementation of travel rule to enhance transparency in crypto asset transactions

• 12 May 2025
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

The Financial Intelligence Centre (FIC) has advised that all crypto asset service providers (CASPs) must comply with Directive 9, which came into effect on 30 April 2025.

Article:

Directive 9 relates to the travel rule for those accountable institutions that engage in crypto asset transfers (to enhance transparency in crypto asset transactions) and was issued in November 2024.

Importantly, all CASPs are required to comply with Directive 9, which came into effect on 30 April 2025.

In addition, the Financial Sector Conduct Authority (FSCA) issued communication 44 of 2024 (AML/CFT) on 13 December 2024. The communication informed accountable institutions supervised by FSCA that the FIC had issued Directive 9 which would come into effect on 30 April 2025, on the implementation of the travel rule relating to crypto asset transfers in accordance with the Financial Action Task Force (FATF) Recommendations.

Financial services providers (FSPs), licensed by FSCA in terms of the Financial Advisory and Intermediary Services Act, 2002 (Act 37 of 2002) (FAIS Act), to provide financial services in respect of crypto assets, fall under the ambit of item 22 and item 12 of Schedule 1 of the FIC Act and are required to implement the travel rule. FSCA strongly advised all licensed FSP CASPs to implement solutions to ensure alignment with Directive 9.

CASPs that fail to comply with Directive 9 will be deemed non-compliant and may be subject to an administrative sanction in accordance with section 45C of the FIC Act.

Importantly, in effecting the obligations in the travel rule Directive, CASPs remain obliged to also comply with any other applicable legislation involving crypto assets and participants should obtain independent legal advice in this regard.

Access Directive 9 at https://www.fic.gov.za/wp-content/uploads/2024/11/Directive-9-Travel-rule-relating-to-crypto-asset-transfers.pdf

Click here to download the 3-page Advisory Notice:

https://www.fic.gov.za/wp-content/uploads/2025/04/2025.4-GN-Advisory-Travel-Rule-17-April-2025-2.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• FICA is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor, independent reviewer and accountant, you need to be aware of directives issued by the FIC that apply to your clients, and which date the directive is effective from.
• This directive is applicable to those clients that are accountable institutions (particularly if listed under items 12 and 22 in Schedule 1 of FICA) that provide or engage in activities of crypto asset transfers for or on behalf of their clients.

Relevance to Your Clients:

• An accountable institution (particularly if listed under items 12 and 22 in Schedule 1 of FICA) that provides or engages in activities of crypto asset transfers for or on behalf of their clients, must comply with this Directive, otherwise they could be held liable.
• As legislation, regulations and laws are continuously changing and evolving, it is of utmost importance for accountable institutions to continue to meet their FICA obligations.

0 COMMENTS

LEAVE A COMMENT