How FATF’s Travel Rule is Enacted with UAE’s Revised Sanctions and AML Policy

Revised AML Rulebook Includes FATF’s Travel Rule

The Financial Services Regulatory Authority (FSRA) of the United Arab Emirates has updated its Anti-Money Laundering and Sanctions Rules and Guidance, or the AML Rulebook, with new elements related to digital assets. This revision is significant for authorized firms in the financial sector and designated non-financial businesses and professions.

Cryptos Consultancy CEO Ali Jamal noted that the key updates to the Rulebook include refining provisions related to wire transfers to explicitly enforce the Financial Action Task Force’s (FATF) Travel Rule on digital assets. This rule is designed to make money through web 3.0, and it applies to digital identity, digital marketing, and metaverse, among other aspects of web 3.0.

The revised AML Rulebook, which incorporates the FATF’s Travel Rule, is set to have a major impact on firms under the AML Rulebook’s purview.

Crypto Regulations in UAE

Jamal stated that the recent changes help to improve the clarity and compliance with the UAE’s strict federal regulations that fight money laundering, terrorism financing, and proliferation financing, and ensure that targeted financial sanctions are strictly observed.

The amendments include provisions that clearly define digital assets as one of the existing payment methods. It is stated in the document that “the payment for any part or all of the sale/purchase amount includes payment(s) using Virtual Assets”.

According to a December 2023 report by the professional network PwC, the UAE is one of the most progressive countries in terms of crypto regulations. The analysis of the PwC shows that the government of the UAE has already adopted a crypto regulatory framework, AML regulations, and the Travel Rule and is in the process of developing stablecoin laws.