The Central Bank of the United Arab Emirates (UAE) announced that it has published new guidance on anti-money laundering (AML) and counter-terrorism financing (CTF) measures for financial institutions dealing with virtual assets, including cryptocurrencies and immutable tokens (NFTs). .
UAE Central Bank Publishes AML/CTF Guidelines on Cryptocurrencies and Virtual Assets
The guidance aims to address the risks associated with virtual assets and services provided by virtual asset service providers.
According to the Central Bank's statement today, the guide highlights the importance of due diligence by licensed financial institutions when engaging with customers and counterparties involved in virtual asset transactions.
The guide aims to improve the overall compliance framework and risk management practices regarding virtual assets.
The newly published guidance will take effect within a month and will apply to a variety of organizations, including banks, financial companies, exchange offices, payment service providers, registered remittance providers and insurance companies, agents and brokers.
By expanding its scope to these institutions, the UAE Central Bank aims to provide a comprehensive coverage of the financial sector and promote compliance with AML and CTF regulations in the context of virtual assets.
The guide includes standards set by the Financial Action Task Force (FATF), an international organization focused on combating money laundering and terrorist financing.
The inclusion of the UAE in the FATF's "grey" list of jurisdictions subject to increased monitoring in March 2022 led the UAE to express its commitment to work closely with the FATF to develop the AML/CTF framework.
*Not investment advice.