The United Arab Emirates, through its Financial Services Regulatory Authority (FSRA), has taken a decisive step in fortifying its financial regulatory landscape. On December 21, the FSRA revised its Anti-Money Laundering and Sanctions Rules and Guidance. This update notably integrates crucial changes concerning digital assets, aligning with the Financial Action Task Force’s (FATF) Travel Rule.
This revision is a significant stride in tightening controls over digital asset transactions. Ali Jamal, CEO of Cryptos Consultancy, highlights that the key amendments primarily focus on wire transfers. The FATF’s Travel Rule now explicitly applies to digital assets, marking a pivotal change for entities governed by the AML Rulebook. This includes not only financial institutions but also designated non-financial businesses and professions.
These changes aim to augment clarity and consistency with the UAE’s comprehensive federal regulatory framework. The goal is to combat money laundering, terrorism financing, and proliferation financing more effectively. Adherence to targeted financial sanctions is also a critical aspect of this overhaul.
Further, the amendments delineate digital assets as a recognized payment method. This inclusion reflects the FSRA’s commitment to acknowledging the evolving nature of financial transactions. The document specifically mentions that payments involving virtual assets fall within the scope of these regulations.
The UAE’s progressive approach to cryptocurrency regulations is noteworthy. A December 2023 report by PwC underscores the country’s forward-thinking stance. The UAE has embraced a crypto regulatory framework and AML regulations compliant with the Travel Rule and is advancing towards finalizing stablecoin laws.
Read Also: Will ETFs Herald a Revival Or Pose Risks On Bitcoin’s Liquidity?
The U.S. Securities and Exchange Commission (SEC) has issued a new guidance. This allows investment…
Federal Reserve Bank of Chicago President Austan Goolsbee has warned that inflation risks could outweigh…
David Schwartz has announced plans to step down from his role as Ripple's Chief Technology…
According to Strategy executive chairman, Michael Saylor, the company has an ambitious vision for its…
Binance founder Changpeng "CZ" Zhao has hinted at another potential 'Uptober' rally as he alluded…
The world's largest asset manager, BlackRock, now holds 3.8% of the total Bitcoin supply through…