Gibraltar

Since 1 January 2018, any firm carrying out business in or from Gibraltar using distributed ledger technology (DLT) for storing or transmitting value belonging to others (DLT activities) needs to be authorised by the Gibraltar Financial Services Commission (GFSC) as a DLT Provider. 

Following this, Gibraltar enacted the Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021 in March 2021, officially implementing the FATF Travel Rule into national law.

What is the scope of the Travel Rule in Gibraltar?

The Travel Rule applies to all virtual asset transfers* made to or from virtual asset service providers**.

*Virtual asset transfer means: “any material transaction, on behalf of a payer, with a view to making a virtual asset available to a payee, irrespective of whether the payer and the payee are the same person.” 

**Virtual asset service provider means: “any person who, by way of business, conducts one or more of the following activities or operations for or on behalf of another person−  

(a) exchange between virtual assets and fiat currencies; 

(b) exchange between one or more forms of virtual assets; 

(c) transfer of virtual assets; 

(d) safekeeping or administration of virtual assets or instruments enabling control over virtual assets; or 

(e) participation in and provision of financial services related to an issuer’s offer or sale of a virtual asset. 

[Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021, section 3.1]

Who is the supervisory body for VASPs in Gibraltar?

Gibraltar Financial Services Commission 

What is the Travel Rule threshold in Gibraltar?

EUR 1000

Obligations of originator virtual asset service providers 

For all transactions over EUR 1000 involving a relevant financial business and a VASP, originator VASPs must obtain the following information and submit it before or immediately alongside the transaction by a secure means:

• originator's name; 

• originator's virtual asset account number; 

• beneficiary's name;

• beneficiary's virtual asset account number.

If a virtual asset account number is unavailable, a unique transaction identifier and one of the following data points must be provided: 

• the originator's physical address; 

• national identity number;

• customer identification;

• or date and place of birth.

Obligations of beneficiary virtual asset service providers 

When a financial business receives a transfer from another VASP, it must check that it has received all the required information (listed in Regulation 4(2)) and it must confirm that the information matches its own records about the originator, including their name and, if relevant, their account number.

Before processing any transfer (whether from a VASP or not), effective risk-based policies and procedures must be in place to check whether the information is missing, incomplete, or inconsistent with its records.

If there is a problem with the information, the business must decide whether to:

• execute the transfer,

• reject it, or

• suspend it, 

• and decide on the proper follow-up actions.

These rules apply even if the financial business and the payee are the same person (for example, if the business is sending assets to its own account).

Does Gibraltar’s Travel Rule apply to self-hosted wallets?

For transactions involving self-hosted wallets, VASPs need to apply enhanced due diligence and ensure that they obtain the information specified in regulation 4(2)(c) and 4(2)(f), which includes the originator's name as well as one of the following identifiers

• the  originator's physical address; 

• national identity number;

• customer identification;

• or date and place of birth.

When do you need to comply with the Travel Rule in Gibraltar?

22 March 2021

However, the GFSC granted an 18-month grace period.

Which regulations are applicable to the Travel Rule in Gibraltar?

Financial Services (DLT) Regulations 2020

Proceeds of Crime Act (Transfer of Virtual Assets) Regulations 2021

What else do you need to know about the Travel Rule in Gibraltar?

All activities falling within the Financial Action Task Force (FATF) definition of VASP are now regulated activities under Gibraltar law and within the regulatory and supervisory ambit of the GFSC.