GUIDANCE FOR LICENSED FINANCIAL INSTITUTIONS ON RISKS RELATED TO VIRTUAL ASSETS AND VIRTUAL ASSET SERVICE PROVIDERS

The Central Bank of the UAE established a dedicated Department in August 2020 to handle all Anti-Money Laundering and Combatting the Financing of Terrorism matters (AML/CFT) which the Banking Supervision Department handled previously.

The Anti-Money Laundering and Combatting the Financing of Terrorism Supervision Department (AMLD) serves three key objectives:

• Examining Licensed Financial Institutions (LFIs),

• Ensuring adherence to the UAE’s AML/CFT legal and regulatory framework, and

• Identifying relevant threats, vulnerabilities and emerging risks concerning the UAE's financial sector.

Through AMLD, the CBUAE coordinates closely with the UAE’s National AML/CFT Committee to effectively implement the National Action Plan.

Within the CBUAE, the AMLD coordinates with the Examination Division of the Banking Supervision Department to exchange AML/CFT information on LFIs, and also works closely with the Enforcement Division to impose penalties required as outlined within the CBUAE’s legal, regulatory and enforcement framework.

Externally, the AMLD acts as the interface between the CBUAE and domestic stakeholders with a focus on facilitating cooperation to enhance the compliance of LFIs with AML/CFT requirements, often alongside the UAE's supervisory, regulatory and law enforcement authorities and the UAE Financial Intelligence Unit (FIU). The AMLD also collaborates with international stakeholders to exchange information on best practices concerning conducting AML/CFT processes and with foreign supervisors to handle requests for information on AML/CFT cases and perform joint AML/CFT examinations.