VerifyVASP Travel Rule Working Groups reach the UAE

Welcoming the news of the United Arab Emirates (UAE)’s exit from the Financial Action Task Force (FATF)’s grey list earlier this year, VerifyVASP conducted Travel Rule working groups in Dubai and Abu Dhabi on 15 and 17 July 2024, respectively, with the objective of bolstering effective Travel Rule compliance.

Virtual Asset Service Providers (VASPs) were pulled into AML/CFT obligations at the federal level by Cabinet Decision No. (10) of 2019 concerning the Implementing Regulation of Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations. Today, Travel Rule compliance is mandatory for VASP licensing in Abu Dhabi Global Markets, (ADGM), Dubai International Financial Centre (DIFC) and by the Virtual Assets Regulatory Authority (VARA) overseeing the virtual assets industry in the UAE.

The objectives of VerifyVASP’s Travel Rule Working Groups is to bring VASPs and stakeholders in the virtual assets industry together in an engaged and collaborative environment. Since many VASPs face the same challenges, these working groups are an opportunity to explore all aspects of the Travel Rule in detail and understand solutions and best practice in local and international regions.

A mix of attendees participated in the UAE working groups: VerifyVASP’s existing members with a presence in the UAE, featuring some the largest global VASPs in the industry, other VASPs looking for a compliant and functioning Travel Rule solution and the regulators themselves.

The UAE working groups covered our typical agenda:

- A deep-dive of jurisdiction-specific Travel Rule regulations and regulatory expectations
- A snapshot of current and future state of Travel Rule regulations internationally especially for the virtual assets industry (often viewed as being borderless)
- A ten-step guide to help members achieve full Travel Rule compliance. This guide has proven useful in assisting VASPs to form the basis of best practices in policies and procedures
- A case study on Travel Rule compliance with VerifyVASP in accordance to FATF standards (referring to our audited responses to FATF’s Guiding Questions from the 2023 and 2024 Targeted Updates)

We remain committed to Public-Private partnership initiatives against a backdrop of increased enforcement and supervision. Implementation of the messaging protocol needed for Travel Rule compliance can be build bottom-up as a holistic ecosystem, incorporating domestic requirements whilst balancing international and future regulations.

Please contact us on corporate@verifyvasp.com if you are interested in joining one of our working groups in your country.