The UAE Central Bank introduces Anti-Money Laundering (AML) guidelines for financial institutions handling cryptocurrencies and NFTs to combat money laundering and terrorism financing.
The latest guidance highlights potential risks associated with virtual assets and their service providers, providing licensed financial institutions (LFIs), such as banks, with an overview of interaction channels and mechanisms for improved oversight.
The guidance emphasizes the importance of due diligence for licensed financial institutions when engaging with virtual asset consumers and counterparties, addressing the associated risks comprehensively.
The need for licensed financial institutions to conduct thorough due diligence when engaging with virtual asset consumers and counterparties, mitigating potential risks effectively.
The new regulations will become legally enforceable within a month, encompassing financial institutions, hawala providers, payment service providers, exchange houses, and insurance agencies and brokers, ensuring compliance across the sector.
Following its inclusion in FATF’s “grey” list in March 2022, the UAE expressed its commitment to actively collaborate with FATF to implement necessary improvements and enhance regulatory compliance.
Dubai’s Virtual Asset Regulatory Authority (VARA) introduced a comprehensive virtual asset framework in February this year, aimed at ensuring adherence to robust anti-money laundering (AML) standards by all participants.
Also Read: Japan’s New Anti-Money Laundering Rules Combat Crypto Crime
