The Financial Services Regulatory Authority of the United Arab Emirates has added new provisions pertaining to digital assets to its AML and sanctions guidelines.
New provisions pertaining to digital assets have been added to the Financial Services Regulatory Authority’s (FSRA) updated Anti-Money Laundering and Sanctions guidelines in the United Arab Emirates.
The Financial Action Task Force’s (FATF) Travel Rule now includes some changes pertaining to digital assets, as per the official announcement made by the FSRA on December 21st regarding revisions to its Anti-Money Laundering and Sanctions Rules and Guidance, or the AML Rulebook.
The CEO of Cryptos Consultancy, Ali Jamal, claims that the main changes in the updated document are the clarification of wire transfer provisions to clearly enforce the FATF’s Travel Rule on digital assets, which will have a big influence on businesses covered by the AML Rulebook. This update is applicable to designated non-financial businesses and professions as well as approved financial sector firms.
“By ensuring strict compliance with targeted financial sanctions, these changes serve to enhance clarity and alignment with the UAE’s robust federal regulatory framework combating money laundering, terrorism financing, and proliferation financing,” said Jamal.
A log of the specific changes indicates that among the new revisions are clauses that clearly identify digital assets as one of the accepted forms of payment.
According to a December 2023 report by the professional network PwC, the UAE is one of the most progressive countries adopting crypto regulations. According to PwC’s analysis, the UAE’s government has already adopted a crypto regulatory framework, AML regulations and the Travel Rule, and is in the final stage of developing stablecoin laws.