Sponsored content
THE Moneybrain team endeavours to keep the Jersey community informed about all things blockchain, crypto and broader innovations.
This week it’s super important to boil down the scary acronym CARF. Here are our top five insights.
What is it?
The Crypto-Asset Reporting Framework, developed by the OECD, aims to set global standards for the reporting of crypto assets.
This closes the gaps terrorists and criminal groups once exploited with crypto.
What does it do?
CARF regulations establish a broad framework for tax transparency, requiring businesses to report transactional and customer data such as details of user transactions, customer identities and tax residency (yes, including tax identification numbers).
What is in scope?
The CARF regulation is broad in scope, covering exchanges between crypto assets and local currencies, exchanging crypto to crypto and peer-to-peer transfer of payments.
The information within the scope of reporting largely includes transactional and customer-related data, including KYC information, crypto wallet addresses with the added requirement of a tax identification number.
Additionally, details about the recipient and the crypto-asset service provider, such as Moneybrain, must be reported.
How does CARF affect us?
Banks in Jersey are checking customer funds that originate to-or-from crypto activities. This in turn may trigger enhanced due diligence, incorporating a review of your
or your business’s source of funds and crypto wallet addresses.
The Jersey banks are reviewing their policies to clarify their position on CARF, hopefully before the end of the year.
The regulation also extends to less obvious intermediaries, such as fiduciaries and trust companies.
Timeline: When does the clock start ticking?
Jersey locked in its CARF commitment in November 2023, aiming for first information exchanges by 2027.
Here’s the play-by-play:
- Go-live: Rules take effect from 1 January 2026, start collecting data on that year’s transactions.
- First reports/exchanges: Due in 2027, covering 2026 activity, with annual filings thereafter.
At Moneybrain, compliance is hard coded into our technology and transparency is central to our mission.
Get in touch with the Moneybrain Corporate team today to find out how we can help you prepare.
