11-1.2. Digital Asset Transfers to or from self-hosted digital wallets
(1) In case of a transfer of a Digital Asset made to or received from a self-hosted digital wallet, the Digital Asset Service Provider of the originator or beneficiary must obtain and hold information referred to in 11-1.1.(3), (4), (5) or (6) from Clients and ensure that the transfer of Digital Assets can be individually identified.
(2) If a Digital Asset transfer exceeds USD 1,000 or there is a suspicion of money laundering or terrorist financing of a transfer to a self-hosted digital wallet, the Digital Asset Service Provider of the originator or beneficiary must take adequate measures on a risk-sensitive basis to mitigate and manage the money laundering and terrorist financing risks associated with the transfer.
Guidance on risk mitigating measures on transfers to or from self-hosted digital wallets
A Digital Asset Service Provider should undertake the following non-exhaustive measures to ensure compliance with AML 11-1.2 (2):
(a) to conduct enhanced monitoring of Digital Asset transfers with self-hosted digital wallets;
(b) to accept Digital Asset transfers from or to self-hosted digital wallets only where the Digital Asset Service Provider has them assessed to be reliable, having regard to the screening results of the Digital Asset transactions and the associated digital wallets and the assessment results on the ownership or control of the self-hosted digital wallet by the originator or beneficiary; and
(c) to impose transaction limits or prohibition.
Note: Chapter 11-1. comes into operation 12 months after the commencement date of the AIFC Rules on Digital Asset Activities.