On November 19th 2019 the Estonian regulator FIU has sent an official survey questionnaire in the form of a precept to all Estonian crypto licensed companies with licenses issued before 30th June 2019. It is mandatory to provide a full set of answers to the regulator latest by 19th of December 2019. The regulator has specified in their letter that failure to comply and reply will result in financial penalty, in amount of 1000 euros to 4000 euros (although rates as high as 100 000 euros are possible). Below we have covered the main aspects of the information that was sent to all companies.
FIU official request precept November 2019
Mandatory Questionnaire from regulator FIU
You need to carefully review the below if:
You are the management board member of an Estonian company which has obtained the activity license of “Providers of a service of exchanging a virtual currency against a fiat currency” and/or “Providers of a virtual currency wallet service” before 30th June 2019
Your company has started activities and/or has not started activities – in both cases action is required!
Below we have covered the main information provided by the regulator FIU. All of their correspondence is in Estonian language, further it has been signed inside a digital container which can be opened only if you have an e-Residency card or alternative digital verification option to access the digitally signed information.
Original text sent in e-mail (in Estonian)
Lugupeetud virtuaalvääringu raha vastu vahetamise teenuse ja virtuaalvääringu rahakotiteenuse pakkujad,
Edastame Teile dokumendi „Ettekirjutus täiendava teabe esitamiseks“, mis on registreeritud 19.11.2019 numbriga 3.4-11/2019/1-1. Ettekirjutuse adressaatideks (Lisa 1) on isikud, kellele on majandustegevuse registris väljastatud tegevusluba virtuaalvääringu raha vastu vahetamise teenuse osutamiseks, tegevusluba virtuaalvääringu rahakotiteenuse osutamiseks või tegevusload mõlema teenuse osutamiseks. Ettekirjutus edastatakse adressaadi poolt äriregistris ja MTR-is avaldatud e-postiaadressile, mis tulenevalt majandustegevuse üldosa seadustiku üldosa seaduse § 11 lg 6 on haldusakti elektrooniliselt kätte toimetamise nõusoleku aluseks.
Küsitluse eesmärk on saada ülevaade sektori mahust, teenuse tarbijatest ja teenusepakkujate tegevusest rahapesuriskide maandamisel. Küsitluse andmete põhjal valmib analüüs, mis aitab rahapesu andmebürool oma tegevusi planeerida, annab rahapesu andmebüroole sissevaate ettevõtete poolt turul pakutavatest teenustest ja aitab analüüsida nimetatud sektorite teenustega seotud rahapesu ja terrorismi rahastamise riske ja ohte, mille põhjal koostatud hinnangud avaldatakse ka turuosalistele.
Ettekirjutuse täitmine on kohustuslik ja tulenevalt haldusmenetluse seaduse § 20 lg-st 1 tuleb vastused esitada eesti keeles.
Küsimustik asub veebikeskkonnas ning sisaldab küsimusi, mille vastustena palume esitada arvandmeid, kui ka kirjeldavaid küsimusi ning täita tuleb ka tabel (Lisa 2), mistõttu anname ettekirjutuse täitmiseks 4 nädalat. Kohustatud isiku abistamiseks on ettekirjutusele lisatud ettekirjutuse täitmise juhend (Lisa 3) ning ettekirjutuse lõppu on lisatud viide ettekirjutuse täitmisega seonduvalt tekkinud küsimuste ja probleemide lahendamiseks võimalike kontaktidega. Küsitud andmeid tuleb edastada vastavalt pakutavate teenuste liigile ja juhendis sätestatud täpsustustele.
Our translation of the text sent in Estonian
Dear Virtual Currency Exchange and Virtual Currency Wallet Service Providers,
We are submitting to you the “Instruction for Supplemental Information” filed on 19.11.2019 under 3.4-11 / 2019 / 1-1. The addressees of the precept (Annex 1) are persons who have been granted an activity license for the provision of virtual currency exchange services in the register of economic activities, an activity license for the provision of a virtual currency wallet service or licenses for the provision of both services. The precept is forwarded to the e-mail address published by the addressee in the Commercial Register and the MTR, which pursuant to § 11 (6) of the General Part of the Economic Activities Code Act constitutes the basis for consent to the delivery of an administrative act electronically.
The purpose of the survey is to gain insight into the size of the sector, the users of the service and the activities of service providers in managing money laundering risks. The survey data will provide an analysis that will help the FIU to plan its activities, provide the FIU with an insight into the services offered by companies in the market and analyze the risks and threats of money laundering and terrorist financing associated with these sectors.
Compliance with the precept is mandatory and pursuant to § 20 (1) of the Administrative Procedure Act the answers must be submitted in Estonian.
The questionnaire is located in the online environment and contains questions for which we ask you to provide numerical data as well as descriptive questions and a table (Appendix 2) must be completed, so we give you 4 weeks to complete the precept. In order to assist the obligated person, a precept is attached to the precept (Annex 3) and a reference is made at the end of the precept with possible contacts for resolving issues and problems related to the precept. The information requested must be communicated according to the type of services offered and the specifications specified in the Guide.
Additional important information
Upon failure to perform the obligations specified in the precept, the Financial Intelligence Unit may apply penalties. Pursuant to § 65 (2) 2) of the Money Laundering Act, the maximum amount of penalty payment for a legal person for failure to comply with an administrative act is up to EUR 32,000 and up to EUR 100,000 the next time for enforcing the same obligation; or up to 10% of the total annual turnover of the legal entity, according to the latest available annual accounts approved by the management body.
The administrative authority must choose a coercive measure which causes the person to perform the obligation imposed on him or her by causing him or her to the minimum extent possible. Taking into account the circumstances of the precept and the importance of the fulfilment of the obligations, a penalty payment of 1000 euros, but not more than 4000 euros in total shall be imposed for failure to fulfil the obligations specified in the precept. If the penalty payment is not paid by the due date, the claim shall be enforced.
Questionnaire for Exchanges
There are five parts to the Virtual Currency Exchange Service Provider Questionnaire: company data, service users, business relationship monitoring, virtual currencies and their turnover, other business activity related issues in providing the virtual currency money exchange service. There are a total of 35 questions in this questionnaire, the latter of which must be uploaded as a supplement to the precept.
Questionnaire for Wallet providers
The Virtual Currency Wallet Service Provider Questionnaire has four sections: company data, service users, business relationship monitoring, business activity questions for providing virtual currency wallet service. There are a total of 29 questions in this questionnaire, the latter of which must be uploaded as a supplement to the precept.
Professional fees and further information
The consultation fee for support services and answers submission starts at 980 euros per license. For our clients we have special discount programs in place. For more information please contact us through the contact form below with your company information and we will contact you shortly with more information.