UAE's Financial Watchdog Updates Anti-Money Laundering Rules, Includes Digital Assets
Summary:
The United Arab Emirates' Financial Services Regulatory Authority has updated its Anti-Money Laundering rules and sanctions guidelines, including modifications related to digital assets. The revisions, in line with the Financial Action Task Force's Travel Rule, affect businesses within the finance sector and certain non-financial companies and professions. The new provisions classify digital assets as a legitimate method of payment, further establishing UAE's position as a leading nation in the adoption of crypto regulations.
The United Arab Emirates' financial monitor, the Financial Services Regulatory Authority (FSRA), has infused fresh elements into its Anti-Money Laundering and sanctions guidelines concerning digital assets. On December 21, the FSRA disclosed the modification of its AML Rulebook, incorporating alterations regarding digital assets, conforming to the Financial Action Task Force’s (FATF) Travel Rule.
Ali Jamal, CEO of Cryptos Consultancy, indicated that the overhauled guidance contained enhanced directives on wire transfers to firmly implement the FATF's Travel Rule on digital assets, greatly affecting businesses under the AML Rulebook. The updated guidelines are pertinent for sanctioned firms in the finance industry and specified non-finance companies and professions.
Jamal affirmed these modifications advance lucidity and accordance with the strong federal regulatory structure of the UAE that counteracts money laundering, terrorist financing, and proliferation financing, confirming rigorous adherence to targeted financial sanctions. According to the catalogue of comprehensive modifications, the fresh revisions classify digital assets as existing payment mechanisms.
The newly revised guide mentioned, "The payment for any portion or entirety of the sale/purchase amount encompasses payments using Virtual Assets". A recent PwC report from December 2023 places UAE among the frontier nations embracing crypto regulations. Per PwC's study, the UAE government has enforced a regulatory structure for crypto, AML directives, and the Travel Rule, and is on the cusp of formalizing laws regarding stablecoins.
Published At
12/21/2023 3:50:11 PM
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