The FSRA announced an update to AML rules, aligning with the crypto travel rule, a regulatory requirement that mandates cryptocurrency service providers to share transaction information.

According to a Dec. 21 announcement, the FSRA has recently implemented revisions to enhance clarity regarding requirements outlined in the AML Rulebook. These changes align with the UAE’s federal regulatory framework, reinforcing measures against money laundering, terrorism financing, and proliferation financing while ensuring compliance with targeted financial sanctions. 

As per the comprehensive record of amendments, the recent revisions clearly designate digital assets as a recognized payment method, specifying that the payment for any part or all of the sale or purchase amount includes payments using virtual assets as outlined in the document.

These revisions have broad relevance, affecting all entities subject to the provisions outlined in the AML Rulebook. This includes authorized firms within the financial services sector and designated non-financial businesses and professions.

As reported by Forbes a month earlier, the region, spearheaded by individual Emirates, notably Abu Dhabi and Dubai, has intensified regulatory initiatives over the last two years.

A PwC analysis confirms this, indicating the UAE government had already implemented a comprehensive regulatory framework, AML regulations, and compliance with the Travel Rule, with the region approaching advanced stages of formulating laws specific to stablecoins.

This approach aimed to attract a global array of businesses centered on digital assets, resulting in substantial contributions of talent, investment, and positive exposure for the area.