UAE adopts regulatory framework for virtual assets to clamp down on money laundering

Dubai: The UAE's anti-money laundering watchdog (NAMLCFTC) has adopted a regulatory framework for virtual assets. This comes at a time when the UAE is cracking down on money laundering and combatting terror financing.

The new regulatory framework was adopted at the 8th meeting of NAMLCFTC. The Committee has assigned the UAE Central Bank and the Securities and Commodities Authority to oversee the implementation.

First major step

This 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 to implement targeted financial sanctions. In addition, the NAMLCFTC approved a notice to raise awareness on the implementation of such 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 framework for identifying and confiscating the proceeds of money laundering crimes outside the UAE.