UAE regulator reviews sanctions and AML policy to implement FATF travel law
The Financial Regulatory Authority (FSRA) in the United Arab Emirates has updated its anti-money laundering and sanctions laws with new elements related to digital assets.
On December 21, the FSRA officially announced amendments to the Anti-Money Laundering and Sanctions Rules and Regulations, or AML Rulebook, adding some changes to provisions related to digital assets in the Financial Action Task Force (FATF) Travel Guide.
According to Ali Jamal, CEO of Cryptos Consultancy, the key amendments in the revised document will significantly affect organizations under the purview of the AML Rulebook, clarifying provisions related to wire transfers to more clearly enforce FATF travel rules on digital assets.
This revision is relevant to authorized organizations in the financial sector and non-financial businesses and professions.
“These changes serve to enhance transparency and alignment with the UAE's strong federal regulatory framework to combat money laundering, terrorist financing and proliferation financing, ensuring strict compliance with targeted financial sanctions,” Jamal said.
According to the list of revisions, the new revisions include provisions that include digital assets as one of the existing payment methods.
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“Payment for any part or all of the sale/purchase amount includes payment using virtual assets,” the document says.
According to a December 2023 report by professional network PwC, the UAE is one of the most progressive countries in adopting crypto regulations. According to PwC's analysis, the UAE government has already adopted the crypto regulatory framework, AML regulations and travel law, and is in the final stages of drafting stablecoin laws.
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