Virtual Assets AML Compliance eBook: Understanding the AML Landscape for VASPs in UAE

The Virtual Asset network is booming across the globe. This calls for robust regulations to manage the inherent risks associated with virtual asset transactions – such as anonymity, quick transfer across boundaries, etc.

For this, UAE authorities have set up regulations around licensing the Virtual Assets Service Providers (VASPs) and introduced the framework governing the compliance and supervision of VASP activities in the country. Here is a comprehensive guide on VASP’s AML Compliance obligations in the UAE.

Understand the concept of Virtual Assets and what all activities involving virtual assets shall qualify the person/entity as the VASP. In UAE, the supervisory authorities governing the virtual asset activities are different depending on the jurisdiction of the operations – such as FSRA for VASP licensed and operating from ADGM, while it is Virtual Assets Regulatory Authority (VARA) for VASP based out in the Emirate of Dubai (except DIFC zone).

The VASP eBook captures the primary AML obligations imposed upon the VASP licensed and operating in UAE. These compliance obligations are aligned with the FATF recommendations around identifying and managing the ML/FT risks associated with virtual asset transactions, which include:

1. Appropriate Registration & Licensing
2. Appointing a competent AML Compliance Officer of MLRO
3. Conducting Enterprise-Wide Risk Assessment to identify and evaluate the ML/FT risks associated with VA transactions
4. Developing and implementing AML/CFT Policies, Procedures, Systems, and Controls
5. Customer Due Diligence process – Know Your Customer, Know Your Transaction and Enhanced Due Diligence
6. Know Your Corresponding VASP measures
7. Compliance with Targeted Financial Sanctions
8. Real-time Transaction monitoring
9. Identifying and reporting suspicious transactions
10. AML/CFT Documentation requirements
11. Compliance with FATF Travel Rule
12. Staff training and independent AML audits

Get more insights into the AML compliance obligations imposed upon your virtual assets activities as VASP licensed and operating in or from UAE.