FATF's Influence: UAE Regulatory Body Updates Sanctions & AML Framework For Travel Rule Implementation

The United Arab Emirates’ Financial Services Regulatory Authority (FSRA), a finance monitor, has refreshed its rules against Money Laundering and sanctions. However, They’ve included new aspects linked to electronic resources.

Furthermore, On Dec. 21, the FSRA formally revealed updates to its AML Rulebook, their rule set for preventing money laundering and sanctions. They’ve adjusted some rules for digital assets aligning with the Financial Action Task Force’s (FATF) Travel Rule.

Ali Jamal, the boss of Cryptos Consultancy, points out the main changes in the updated paperwork. They fine-tune rules about wire transfers. However, The FATF’s Travel Rule for digital money is now clearly enforced, greatly affecting companies under the AML Rulebook’s watch.

Additionally, this edit is important for approved business entities in finance and specified non-financial occupations and sectors.

“These amendments boost understanding and coordination with the UAE’s sturdy central rules against money laundering, finance for terrorism, and the spread of such financing. They ensure strict adherence to targeted monetary sanctions,” expressed Jamal.

PwC Report Highlights UAE Progressive Stance On Crypto Regulations & The Travel Rule

Moreover, The recent changes, listed in a detailed log, place digital assets under the umbrella of current payment methods.

The document clarifies, “Any portion or the entirety of the sale or purchase cost may be handled with Virtual Assets.”

**A snippet from the revised Anti-Money Laundering and Sanctions Rules by FSRA. Source: Abu Dhabi Global Market.**

PwC, a well-known professional network, shared in their Dec 2023 report that the UAE is a forward-thinking country accepting cryptocurrency regulations.

However, the report detailed how the UAE government introduced rules for cryptocurrency, AML, and the Travel Rule. They are also close to finalizing laws about stablecoin.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.