1.
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VASPs must have procedures for ensuring that all VA Transfer and Settlement Services carried out for a client are authorised by the relevant client, and that the VASP is acting in accordance with the client’s instructions at all times. |
2.
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To the extent that any Virtual Assets transmission or transfer, and/or settlement processed by a VASP as part of any VA Transfer and Settlement Services is not authorised by the relevant client, or is not carried out by the VASP in accordance with the client’s instructions due to any reason whether or not it is a VASP triggered consequence, the VASP—
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a.
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shall, as soon as practicable but in all events within twenty-four [24] hours of becoming aware of such erroneous execution, refund the client or otherwise restore the client’s account to the state it would have been in, had the wrongful transmission or transfer, and/or settlement not been effected; and |
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b.
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is liable to the client in respect of the loss suffered by the client as a direct result of the VASP’s actions or omissions.
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3.
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Where a VASP’s client is the sender of a Virtual Assets transmission or transfer, and/or settlement the VASP is liable to its client for the correct transmission or transfer, and/or settlement of the Virtual Assets to the recipient, whether the transmission or transfer, and/or settlement is to the recipient’s VASP [if applicable] or VA Wallet. To the extent that any such Virtual Assets transmission or transfer, and/or settlement is not received by the target recipient, the VASP must make immediate efforts to trace the Virtual Assets, establish the cause of the failure, and notify its client [the sender] of the outcome. The VASP shall only be deemed to have fulfilled its responsibility if and when it is able to prove that it is not liable in respect of a non-executed, defectively executed or incomplete Virtual Assets transmission or transfer, and/or settlement. |
4.
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A recipient’s VASP [if applicable] is responsible for the systemic readiness and infrastructural functioning of VA Wallets and/or accounts of its clients for the purposes of receiving Virtual Assets, as well as providing all routing information that is necessary for a transmission or transfer, and/or settlement to be completed when requested by the sender’s VASP. To the extent that any Virtual Assets transmission or transfer, and/or settlement is not received by the target recipient, the recipient VASP shall only be liable if and when the sender’s VASP can establish that it has executed the transmission or transfer, and/or settlement in accordance with the instructions, and that the error was caused by the recipient’s VASP. |
5.
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VASPs must maintain records of all client instructions for a period of eight [8] years.
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