The National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC), in collaboration with UAE supervisors, has issued guidance on combating the use of unlicensed Virtual Asset Service Providers (VASPs), which is prepared by the supervisory subcommittee. The guidance, which aims to educate licensed financial institutions (LFIs) and the wider public sector on the risks associated with unlicensed virtual asset service providers, has been issued pursuant to the Decree Federal Law No. (20) of 2018 on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) and Illegal organizations, and is in alignment with the Financial Action Task Force (FATF) publication on updated guidance for a risk-based approach to virtual assets and virtual asset service providers.
The guidance provides the reporting entities including LFIs, Designated Non-Financial Businesses and Professions (DNFBPs), and Licensed Virtual Asset Service Providers (VASPs) with a comprehensive roadmap to enhancing their governance and operational processes. It also highlights how to identify and address governance challenges and emerging risks, underlining the importance of compliance with regulatory obligations under AML legislation and the regulations, instructions, guidelines, notices, and rules issued by the Supervisory Authorities.
His Excellency Khaled Mohamed Balama, Governor of the CBUAE and Chairman of the NAMLCFTC, said: “The new guidance on combating the use of unlicensed virtual asset service providers comes at a time when virtual assets become more accessible through digital channels. As our digital economy matures, our work on combating all kind of financial crimes intensifies through raising awareness of their risks and emphasizing the importance of compliance with relevant regulations and legislation to ensure the integrity of the UAE’s financial system.” https://shorturl.at/cOS47
Source: IBP