March 27, 2024
UAE Regulator Adopts FATF's Travel Rule
Latest Cryptocurrency News

UAE Regulator Adopts FATF’s Travel Rule

The Financial Services Regulatory Authority (FSRA) in the United Arab Emirates (UAE) has introduced updates to its Anti-Money Laundering (AML) and sanctions rules, incorporating new elements about digital assets. The FSRA officially disclosed these changes on Dec. 21, amending its AML Rulebook, particularly focusing on provisions related to digital assets within the Financial Action Task Force’s (FATF) Travel Rule.

Cryptos Consultancy CEO Ali Jamal highlighted key updates in the revised document, emphasizing the refinement of provisions related to wire transfers to explicitly enforce the FATF’s Travel Rule on digital assets. These changes notably impact entities falling under the purview of the AML Rulebook, including authorized firms in the financial sector and designated non-financial businesses and professions.

Jamal stressed that the revisions seek to improve transparency and adherence to the UAE’s comprehensive federal regulatory framework addressing money laundering, terrorism financing, and proliferation financing. The goal is to guarantee rigorous compliance with specific financial sanctions, underscoring the commitment to a robust and effective regulatory environment.

The detailed amendments explicitly define digital assets as one of the existing payment methods, stating, “The payment for any part or all of the sale/purchase amount includes payment(s) using Virtual Assets.”

According to a December 2023 report by professional network PwC, the UAE stands out as one of the most progressive countries in adopting crypto regulations. The analysis notes that the UAE government has already embraced a comprehensive crypto regulatory framework, including AML regulations and the Travel Rule. Additionally, the UAE is in the final stages of developing stablecoin laws.

This move by the FSRA underscores the UAE’s commitment to staying at the forefront of crypto regulation and aligning its financial landscape with evolving global standards in combating financial crimes associated with digital assets.

Photo by Suji Su

Related posts

Binance Expands into Thailand with Regulatory Approvals for Gulf Binance 

Kevin Wilson

Alchemy Pay and Worldpay Forge Partnership Enabling Crypto Purchases via Visa and Mastercard

Kevin Wilson

SEC Pushes To Include Binance’s Guilt Admission In Case

Bran Lopez

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More