New regulatory framework for virtual assets in the UAE
REGULATORS HOPE PUBLIC, PRIVATE SECTORS COMBAT ILLEGAL FUND FLOWS TOGETHER
The Committee has assigned CBUAE and the Securities and Commodities Authority to oversee the implementation of the new regulatory framework.
The UAE’s National Committee for Combating Money-Laundering and Financing of Terrorism and Illegal Organisations (NAMLCFTC) has adopted a regulatory framework for virtual assets in the UAE, in accordance with approved antimoney laundering and combating the financing of terrorism (AML/CFT) standards.
The new regulatory framework was adopted at the 8th meeting of NAMLCFTC chaired by Khaled Mohammad Balama, Governor of the Central Bank of the UAE (CBUAE) and Chairman of the NAMLCFTC, in the presence of Ahmad Ali Al Sayegh, Minister of State for the UAE.
The Committee has assigned CBUAE and the Securities and Commodities Authority to oversee the implementation of the new regulatory framework.
First major step
This regulatory framework is an initial step in providing comprehensive regulation of virtual assets, and safeguards the financial system and investors from money laundering and terrorist financing risks, in line with recommendation No. 15 of the Financial Action Task Force (FATF) International Standards on AML/CFT.
The Committee adopted guidelines for local authorities and the public sector on roles and procedures to implement targeted financial sanctions. In addition, the NAMLCFTC approved a circular notice to supervisory authorities and the Executive Office for the Committee for Goods and Materials
Subject to Import and Export Control to raise awareness on the implementation of targeted financial sanctions.
The Committee approved technical studies proposed by the Sub-Committee for Technical
Compliance on the legislative framework for confiscation based on non-conviction, as required by the National Action Plan. It also adopted a national legislative framework with mechanisms for identifying and confiscating the proceeds of money-laundering crimes outside the UAE.
Safeguard infrastructure
“The NAMLCFTC is working to address gaps in the UAE’s AML/CFT framework, in coordination with the Executive Office of Anti-Money Laundering and Countering the Financing of Terrorism, and to introduce projects and initiatives to safeguard the UAE’s infrastructure against the threat of money laundering and terrorist financing. This is in addition to enhancing the efforts of the Committee’s individual authorities, ultimately contributing to the UAE’s leading position in fighting money laundering and financing of terrorism,” said Khaled Mohammad Balama, Governor of the CBUAE and Chairman of the NAMLCFTC.