The United Arab Emirates’ Financial Services Regulatory Authority (FSRA) has announced significant updates to its Anti-Money Laundering and Sanctions Rules, focusing on the inclusion of provisions for digital assets. These changes aim to bolster the FSRA’s compliance with the Financial Action Task Force’s (FATF) Travel Rule and align with the UAE’s robust federal framework against financial crimes.
Ali Jamal, CEO of Cryptos Consultancy, highlighted that the key revisions in the AML Rulebook emphasize enforcing the FATF’s Travel Rule on digital assets, affecting various financial and non-financial entities.
These changes serve to enhance clarity and alignment with the UAE’s robust federal regulatory framework combating money laundering, terrorism financing, and proliferation financing, ensuring strict compliance with targeted financial sanctions.
Ali Jamal
One notable amendment explicitly defines digital assets as a recognized payment method, stating, “The payment for any part or all of the sale/purchase amount includes payment(s) using Virtual Assets.” This inclusion marks a significant stride in acknowledging the growing relevance of digital currencies in financial transactions.
A December 2023 report by PwC commends the UAE for its progressive stance on crypto regulations. The country has already implemented a crypto regulatory framework and AML regulations, including the Travel Rule, and is developing stablecoin laws. These steps underscore the UAE’s commitment to fostering a safe and regulated digital asset environment while combating financial crimes.