Publications

HCLA has completed the second part of the White Paper series focusing on crypto assets operating in the EU, as per the regulatory proposal, MiCA, put forward by the EU Commission to the legislative mechanism of the EU. The proposal is currently going through the review mechanism and will become legally binding as of 2024. Part B of the White Paper covers, amongst other things, the general and specific obligations incumbent on service providers of crypto-assets.

Link to PDF version of HCLA White Paper, Part B.

HCLA has prepared and finalized the first part of the White Paper series focusing on crypto assets operating in the EU, as per the regulatory proposal put forward by the EU Commission to the legislative mechanism of the EU. The proposal is intent on creating a harmonized system for issuing crypto-assets and a parallel system for crypto-asset service providers.

The White Paper on Enhanced Due Diligence addresses the fundamental issues and the procedure of the enhanced due diligence process. This White paper is constructed from several HCLA research papers, published articles, respective regulations, and as a result, is intended for information purposes only.

Due diligence procedure comprises an in-depth analysis of the customer, the nature of the business, and the respective assets to be used in the transaction, whilst assessing their compliance with relevant regulations, including the anti-money laundering (AML) compliance laws, combating the financing of terrorism (CFT) regulations, and any applicable sanctions regimes. However, this level of due diligence does not always represent a risk-averse enough license to enter into a business relationship. Therefore, extreme caution should be exercised when interacting with individuals or companies with a potentially negative track record, including the risk of engaging in activities that may be illegal or subject to certain sanctions regimes. The enhanced due diligence (EDD) procedures are designed to improve the security of any business relationship when a high-risk profile customer is involved.

This White Paper aim to highlight several key elements in the EDD process and make practical recommendations that could be implemented by the businesses in mitigation of inherent risk, to make the whole process more efficient and cost-effective.

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