Sierra Leone Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Bank of Sierra Leone, UN Security Council Committee, Operating Authority
Primary Legislation: No specific law, act, or regulation addressing cryptocurrency, digital assets, v, The SLSB's technical regulation publication process, which requires a 60-day pub
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Sierra Leone has no specific legal or regulatory framework for crypto/Web3 assets; no law defines, authorizes, or prohibits virtual assets, and no regulator has issued binding rules for them. Business Related Policies and Legislations in Sierra Leone. The Bank of Sierra Leone is the monetary authority and, along with the National Revenue Authority, would be the natural regulators, but neither has published crypto-specific regulations or licensing procedures. Domestic Tax. No license can currently be obtained for crypto activities because no licensing regime exists under Sierra Leonean law. Business Related Policies and Legislations in Sierra Leone. No entity has been licensed to conduct crypto business in Sierra Leone; the licensing framework for such activities is entirely absent. Business Related Policies and Legislations in Sierra Leone. The practical reality is that crypto businesses operate in a legal vacuum, facing uncertainty on tax treatment, AML obligations, and enforcement risk. Sierra Leone Medium Term Revenue Strategy

Key Facts

aml The Anti-Money Laundering and Combating of Financing of Terrorism Act, 2018: While an online copy with a direct, stable URL is not readily available through general government searches, this Act is the primary domestic legislation for AML/CFT in Sierra Leone. It would be accessible via legal databases or directly from the Bank of Sierra Leone (BSL) or the Financial Intelligence Unit – Sierra Leone (FIU-SL). For natural persons: Name, address, date of birth, nationality, unique identification number (e.g., national ID, passport). Verification through reliable, independent source documents, data, or information. For legal persons/arrangements: Name, legal form, proof of existence, powers that regulate and bind the legal person, and identification of persons holding senior management positions. Identification of Beneficial Owners: Take reasonable measures to understand the ownership and control structure of the customer and identify the ultimate natural person(s) who own or control the customer. Purpose and Nature of Business Relationship: Understand the purpose and intended nature of the business relationship or occasional transaction. Ongoing Monitoring: Conduct ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds or wealth. Risk-Based Approach: Apply enhanced CDD for higher-risk customers or transactions (e.g., Politically Exposed Persons (PEPs), cross-border correspondent relationships, complex structures, high-value transactions, or transactions involving jurisdictions with weak AML/CFT regimes). Conversely, simplified CDD may be applied for lower-risk scenarios. Source of Funds and Source of Wealth: For higher-risk customers or transactions, VASPs are expected to take reasonable measures to establish the source of funds and source of wealth involved.
licensing No Specific License: There are currently no specific licenses in Sierra Leone for cryptocurrency custodians or digital asset service providers. Entities engaging in such activities operate in a largely unregulated space regarding specific crypto custody requirements. BSL Warnings: The Bank of Sierra Leone has repeatedly issued warnings to the public about the risks of investing in or transacting with cryptocurrencies, stating that they are not legal tender and are not regulated by the BSL. This implies that any entity offering crypto custody services would be operating outside the formal regulatory perimeter. Reference (BSL General Position): While a direct link to an original circular explicitly stating "no crypto license" might be hard to pin down years later as they're often news releases, the consistent stance is evident in financial reports and news related to the BSL. You can generally refer to the BSL's official website for general financial sector laws and policies: Bank of Sierra Leone Official Website: https://www.bsl.gov.sl/ Segregation of Client Assets Rules: No Specific Rules: Given the absence of a dedicated regulatory framework for crypto custody, there are no specific rules mandating the segregation of client digital assets from the custodian's own assets. General Financial Principles (Hypothetical): In a regulated financial sector, principles of trust law and banking regulations typically require segregation of client funds. However, these would not apply specifically to unregulated crypto custody providers. No Specific Requirements: There are no specific insurance or bonding requirements for cryptocurrency custodians in Sierra Leone.
securities The Companies Act (as amended 2014) establishes the Corporate Affairs Commission, which regulates company formation and registration, relevant to any entity seeking to operate in Sierra Leone. Business Related Policies and Legislations in Sierra Leone Sierra Leone is a member of the WTO, and its financial regulatory framework operates within ECOWAS commitments, though no crypto-specific regional framework is cited. Business Related Policies and Legislations in Sierra Leone A Security and Exchange Bill was proposed to enable regulation of the stock exchange to pass from the Bank of Sierra Leone to the Securities and Exchange Commission; the Security Exchange and Commission Act 2017 reflects this legislative development. Business Related Policies and Legislations in Sierra Leone The Security Exchange And Commission Act 2017 Sierra Leone's AML framework is governed by the 2024 AML/CFT Act (Act 4 of 2024), which is the most recent consolidation of the country's anti-money laundering obligations. ACT Supplement ,o lhe Sierra Leone Gazette Vol. CLX|4. No. 44 No entity has been licensed to operate as a virtual asset service provider, crypto exchange, or digital asset custodian in Sierra Leone — zero licenses have been granted. The Companies Act requires registration and incorporation of companies through the Corporate Affairs Commission; the Act includes provisions governing share capital, meetings, and directors' powers and duties, applying to any corporate entity regardless of business sector. Business Related Policies and Legislations in Sierra Leone The Business Registration Act 2007 sets out the four steps for business registration in Sierra Leone, with incorporation time reduced from seven days to two or three days. Business Related Policies and Legislations in Sierra Leone The Companies Regulations 2015 provide interpretation and procedural rules for company registration and compliance; no equivalent regulations exist for virtual asset service providers. THE COMPANIES REGULATIONS, 2015 PART I-INTERPRETATION 1. Interpretation.
status The Sierra Leone Standards Bureau (SLSB), operating under the Ministry of Trade and Industry, is the primary body overseeing the country's standards regime, including standardization, metrology, certification, and conformity assessments Sierra Leone - Standards for Trade The SLSB ensures the accuracy of weights and measures, calibrates equipment, and verifies product compliance through inspections and testing, particularly at borders in coordination with customs and regulatory agencies Sierra Leone - Standards for Trade The SLSB enforces mandatory standards addressing health, safety, and environmental protection, alongside voluntary standards promoting trade and best practices, but no specific standards have been issued for cryptocurrency or digital assets Sierra Leone - Standards for Trade Sierra Leone aligns its national standards framework with the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), though neither body has issued comprehensive cryptocurrency standards adopted by Sierra Leone Sierra Leone - Standards for Trade The SLSB is an ISO Corresponding Member, IEC Affiliate Member, and holds memberships in the International Organization of Legal Metrology (OIML), African Organization for Standardization (ARSO), and ASTM via memorandum of understanding Sierra Leone - Standards for Trade Technical regulations and standards are published through the official government gazette, with proposed regulations undergoing a 60-day public consultation period before becoming mandatory Sierra Leone - Standards for Trade Sierra Leone adheres to WTO agreements on Sanitary and Phytosanitary Measures (SPS), Technical Barriers to Trade (TBT), and Trade Facilitation, demonstrating commitment to international best practices in trade and product quality Sierra Leone - Standards for Trade The SLSB oversees the review and publication of technical regulations and standards through the official government gazette; after finalization and publishing, regulations become mandatory following a 60-day period Sierra Leone - Standards for Trade
tax Sierra Leone has no specific legal or regulatory framework for crypto/Web3 assets; no law defines, authorizes, or prohibits virtual assets, and no regulator has issued binding rules for them. Business Related Policies and Legislations in Sierra Leone No license can currently be obtained for crypto activities because no licensing regime exists under Sierra Leonean law. Business Related Policies and Legislations in Sierra Leone No entity has been licensed to conduct crypto business in Sierra Leone; the licensing framework for such activities is entirely absent. Business Related Policies and Legislations in Sierra Leone The practical reality is that crypto businesses operate in a legal vacuum, facing uncertainty on tax treatment, AML obligations, and enforcement risk. Sierra Leone Medium Term Revenue Strategy The primary tax authority is the National Revenue Authority (NRA), which administers the Income Tax Act 2000 (as amended), the Goods and Services Tax Act 2009 (as amended), and the Customs Act 2011. Business Related Policies and Legislations in Sierra Leone The Bank of Sierra Leone is the central bank and monetary regulator, referenced in the context of ongoing economic reforms, but it has not issued any virtual asset regulation. Business Related Policies and Legislations in Sierra Leone The Corporate Affairs Commission regulates company incorporation under the Companies Act, which was amended in 2014 to remove administrative barriers and improve transparency of the companies register. Business Related Policies and Legislations in Sierra Leone The Small and Medium Enterprises Development Agency Act 2015 established the SMESL agency to promote SME development, but it has no remit over crypto or virtual assets. Business Related Policies and Legislations in Sierra Leone
travel rule Not explicitly adopted or fully implemented through specific legislation targeting VASPs and the Travel Rule. While Sierra Leone has a foundational AML/CFT law, the Anti-Money Laundering and Combating of Terrorist Financing Act, 2019, this act does not explicitly define "Virtual Assets" or "Virtual Asset Service Providers" in a way that would trigger the specific requirements of the Travel Rule. GIABA's Mutual Evaluation Reports and subsequent follow-up reports on Sierra Leone have consistently highlighted deficiencies in addressing new technologies and products, including virtual assets, indicating a lack of comprehensive regulatory and supervisory framework for VASPs. As of the latest public reports, Recommendation 15 (New Technologies) is typically rated as "Partially Compliant" or "Non-Compliant" for Sierra Leone, specifically due to the absence of a legal and regulatory framework to supervise VASPs and implement the Travel Rule. There is no specific effective date for the FATF Travel Rule in Sierra Leone because dedicated legislation for it has not been enacted. The general Anti-Money Laundering and Combating of Terrorist Financing Act, 2019 came into effect upon its assent, but it does not cover the Travel Rule's specific requirements. No specific threshold amounts have been legislated for the Travel Rule in Sierra Leone, as the rule itself is not formally adopted. The FATF recommendation is that the Travel Rule applies to virtual asset transfers above USD/EUR 1,000 (or local currency equivalent) for both cross-border and domestic transfers. If Sierra Leone were to implement it, they would likely adopt this or a similar threshold. No specific categories of VASPs are explicitly covered under a VASP-specific regulatory framework in Sierra Leone.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile