UAE Central Bank issues anti-money laundering guidelines for cryptocurrencies
UAE Central Bank issues anti-money laundering guidelines for cryptocurrencies
The UAE Central Bank has issued new anti-money laundering and counter-terrorist financing guidance for financial institutions when dealing with virtual assets, such as cryptocurrencies and non-exchangeable tokens.
"The new guidance related to the virtual assets sector contributes to strengthening the supervisory and regulatory frameworks of the Central Bank to combat money laundering and the financing of terrorism," said Khaled Mohamed Balama, Governor of the UAE Central Bank.
The guidelines will come into effect within a month and will apply to all licensed institutions, such as banks, finance companies, exchange houses, payment service providers, registered hawala providers, insurance companies, agents, and brokers, according to the Finance Magnates website.
The guidance outlines the risks of dealing with virtual assets and digital asset service providers, including the due diligence of licensed financial institutions when dealing with such clients and counterparties. In addition, the guidance provides clear definitions of virtual assets, virtual asset service providers, and their business models.
The UAE's top financial regulator also said the guidance takes into account Financial Action Task Force (FATF) standards.
Previously, we reported that Dubai's regulator, VARA, issued its first license to crypto exchange.
