N.D. Cent. Code § 13-09.1-52: Prevention of fraudulent activity

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.