An aspect that required legal research is what are the compliance requirements to facilitate Dash FIAT exchange. This can be in the form of running ATM kiosks or using other mechanisms to personally offer DASH to FIAT exchange services.
For this purpose we hired Cogent Law who have a lot of experience working in compliance for digital money services. They have put together a compliance program that will be shared with anyone launching a Dash service if they require it. This includes:
- A finCEN BSA compliant written Principal MSB/KYC AML Program designed to prevent the Principal MSB from being used to facilitate money laundering and the financing of terrorist activities
- A comprehensive risk based assessment by a third party compliance consultant expert
Our lawyer for this project is Adella Toulon-Foerster who has extensive experience in this field including:
- Banking Secrecy Act (BSA), Anti-Money Laundering (AML), and Know Your Customer (KYC) regulations
- FinCEN requirements and guidance
- Written and on-going AML compliance programs
- State-by-state money transmitter laws and licensure requirements
We now have full documentation of the program from Cogent Law, the package includes:
- BSA AML Compliance training
- KYC CDD Policy
- AML Program
- Risk Assessment
- Surveillance and Monitoring Policy
- Different Reports to file in different situations
The documents have a format as if they were created for the fictional company “Initech” and then the interested Dash entrepreneur would have to replace it with their real corporation. We believe that some counsel would still be advisable for an investor launching a service but this will really help them get a good understanding of the requirements and let’s say 80% of the way. This should also be highly educational and help the Dash investor be more at ease as it enlightens a typically obscure topic for most crypto enthusiasts.
This program is directed at Dash investors that are interested in running a compliant service in regulated markets. If some users prefer to run services without a compliance program or don't need one, we completely respect that too.
STEP 1) Please first read the Quick Guide To Operating a Virtual Currency Kiosk.
This guide will guide you through the initial steps of registering as an MSB. It is crucial you start here.
STEP 2) Listen to the Audio Guides on BSA AML and read the BSA AML Training Manual
- BSA AML Compliance Training manual: BSA AML Compliance Training_Sample_DASH.pptx
- AML - 101: https://soundcloud.com/dashpay/aml-101-dash
- AML Indepth_DASH: https://soundcloud.com/dashpay/aml-indepth-dash
STEP 3) Get familiar with the documentation you will need by looking at the following templates
- Surveillance and Monitoring: SurveillanceandMonitoring_Sample_DASH.docx
- KYC CDD Policy: KYC CDD Policy_Sample_DASH.docx
- AML Program: AML Program_Sample_DASH.docx
- Risk Assessment: Risk Assessment_Sample_DASH.docx
STEP 4) Get familiar with some of the reports you may need to file as part of operations.
On the Quick Guide in STEP 1, we go through registration on the E - BSA filing system. Here are the CTR (Currency Transaction Report) and SAR (Suspicious Activity Report) samples reports, DASH operators should be familiar with as they may need to file them as part of operations.
STEP 5) If you would now like to move forward with your project we recommend getting in contact with our recommend legal counsel for this Cogent Law, so they can help you prepare everything. There will be preferential rates for Dash users. Please email: email@example.com