UAE’s FSRA Strengthens Crypto Regulations in Latest AML Update

Published 22/12/2023, 12:57
UAE’s FSRA Strengthens Crypto Regulations in Latest AML Update

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  • The Financial Services Regulatory Authority (FSRA) in the UAE updates Anti-Money Laundering (AML) and Sanctions Rules.
  • The AML Rulebook aims to strengthen measures against money laundering, terrorism financing, and proliferation financing.
  • Notable adjustments emphasize adherence to the FATF’s ‘Travel Rule’ for virtual assets.

The Financial Services Regulatory Authority (FSRA) in the United Arab Emirates has issued updates to its Anti-Money Laundering (AML) and Sanctions Rules and Guidance, referred to as the AML Rulebook.

The updated AML Rulebook will help strengthen regulatory measures against money laundering, terrorism financing, and proliferation financing. These modifications will build upon the existing guidelines of the UAE.

One notable adjustment involves refining provisions related to wire transfers, explicitly emphasizing adherence to the Financial Action Task Force’s (FATF) ‘Travel Rule’ concerning virtual assets.

The revisions outlined in the AML Rulebook apply to a spectrum of entities falling under its purview. This encompasses approved entities within the financial services sector and designated non-financial businesses and professions.

The revisions not only bolster the regulatory clarity for these entities but also significantly impact their operations, especially in terms of compliance with the ‘Travel Rule’ for virtual assets.

According to Ali Jamal, CEO of Cryptos Consultancy, a crypto consulting firm based in Dubai, these revisions serve to strengthen compliance measures by refining provisions and ensuring strict adherence to targeted financial sanctions.

Key updates include refining provisions related to wire transfers to explicitly enforce the FATF’s “Travel Rule’ on virtual assets, significantly impacting firms under the AML Rulebook’s purview.

As of December 2023, PricewaterhouseCoopers reported that the UAE stands out as one of the countries making significant strides in adopting cryptocurrency regulations. PwC’s analysis reveals that the UAE government has implemented a regulatory framework for cryptocurrencies.

The post UAE’s FSRA Strengthens Crypto Regulations in Latest AML Update appeared first on Coin Edition.

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