IEIM8000410 - Introduction
Regulation 4 of the requires UK RCASPs to undertake due diligence procedures to identify all cryptoasset users and reportable persons. Reportable persons may be both individual and entity reportable users and controlling persons of certain entity cryptoasset users.
The due diligence procedures include collecting self-certificates from cryptoasset users, validating the content of the self-certificates and maintaining a clear audit trail of the due diligence process.
A CARF self-certificate is collected by RCASPs from all individual and entity cryptoasset users and from controlling persons of certain entity cryptoasset users of a UK RCASP. The self-certificate is an integral part of the CARF rules as it allows RCASPs to identify the cryptoasset users that are reportable persons that need to be reported to HMRC. Once identified, the RCASP will report information on the reportable persons’ activity to HMRC.