UAE to Implement AML Rules to Digital Assets

By the end of June, the Central Bank of the United Arab Emirates (CBUAE) will enact rules requiring licensed financial institutions (LFIs) to verify the identities of customers.

The CBUAE published a guidance document outlining these new regulations and the risks associated with virtual assets and virtual assets service providers.

These rules take into consideration global standards set forth by the Financial Action Task Force.

LFIs, including banks, finance companies, exchange houses, payment service providers, registered hawala providers and insurance companies, must submit requests to the central bank on a case-by-case basis in order to open accounts with virtual asset service providers (VASPs).

Any collaborations with VASPs without a national license is disallowed.