Skip to main content
Find a Lawyer

North Dakota Century Code Title 13. Debtor and Creditor Relationship § 13-09.1-52. Prevention of fraudulent activity

Current as of January 01, 2024 | Updated by Findlaw Staff

1. A virtual-currency kiosk operator shall use blockchain analytics software to assist in the detection and prevention of suspicious activity, including sending purchased virtual currency from a virtual-currency kiosk operator to a virtual-currency wallet known to be affiliated with fraudulent activity at the time of a transaction and identifying patterns that reflect money laundering or other illicit activity. The commissioner may request evidence from any virtual-currency kiosk operator of use of blockchain analytics.

2. A virtual-currency kiosk operator shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written antifraud policy. The antifraud policy must include:

a. The identification and assessment of fraud-related risk areas;

b. Procedures and controls to protect against identified risks;

c. Allocation of responsibility for monitoring risks; and

d. Procedures for the periodic evaluation and revision of the antifraud procedures, controls, and monitoring mechanisms.

3. Each virtual-currency kiosk operator shall designate and employ a compliance officer with the following requirements:

a. The individual must be qualified to coordinate and monitor compliance with this chapter and all other applicable federal and state laws and rules;

b. The individual must be employed full-time by the virtual-currency kiosk operator; and

c. The designated compliance officer may not be an individual who owns more than twenty percent of the virtual-currency kiosk operator by whom the individual is employed.

4. Compliance responsibilities required under federal and state laws and rules must be completed by full-time employees of the virtual-currency kiosk operator.

5. A virtual-currency kiosk operator shall maintain, implement, and enforce a written enhanced due diligence policy. The policy must be reviewed and approved by the virtual-currency kiosk operator's board of directors or equivalent governing body.

6. A virtual-currency kiosk operator shall designate and employ a consumer protection officer. The consumer protection officer:

a. Must be qualified to coordinate and monitor compliance with state and federal law;

b. Must be employed full-time by the virtual-currency kiosk operator; and

c. May not own more than twenty percent of the virtual-currency kiosk operator.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - North Dakota Century Code Title 13. Debtor and Creditor Relationship § 13-09.1-52. Prevention of fraudulent activity - last updated January 01, 2024 | https://codes.findlaw.com/nd/title-13-debtor-and-creditor-relationship/nd-cent-code-sect-13-09-1-52/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard