The International Monetary Fund (IMF) has joined forces with the UAE Executive Office of Anti-Money Laundering and Counter Terrorism Financing (EO AMLCTF) in a collaborative initiative to tackle the challenges associated with virtual assets. This joint endeavor, involving AML/CFT supervisors from 15 countries, reflects a shared commitment to fortify the regulatory framework for virtual assets (VAs) and virtual asset service providers (VASPs).
Representatives from countries such as Australia, the Bahamas, Bahrain, Saudi Arabia, the United Kingdom, the UAE, and the United Nations Office on Drugs and Crime participated in a three-day workshop. The workshop aimed to explore a draft supervisory methodology crafted by IMF staff, part of the IMF’s capacity development program, with the goal of enhancing the risk-based supervision of VAs and VASPs.
Hamid Al Zaabi, Director-General of the EO AMLCTF, underscored the UAE’s dedication to hosting such a workshop as a commitment to developing a robust regulatory framework for virtual assets. He emphasized the UAE’s aim to elevate the effectiveness of its regulatory framework, welcoming innovative firms while deterring illicit actors attempting to exploit the global financial system. Al Zaabi noted that collaboration with the IMF provides supervisory authorities worldwide with an opportunity to contribute to the crucial methodology design process.
Chady El Khoury, Deputy-Division Chief of the Financial Integrity Group at the IMF, emphasized the urgency for countries to address money laundering and terrorist financing risks associated with virtual assets. Workshop participants reached a consensus on the imperative for collective action and collaboration.
The workshop facilitated open discussions, allowing participants to exchange insights, best practices, and proposed solutions. Acknowledging challenges such as capacity limitations for supervisory agencies, data collection gaps, and the importance of stronger cooperation among AML/CFT supervisory agencies, the collaboration aimed to address these issues collectively.
As the methodology undergoes refinement based on feedback, it is poised to become an integral component of the IMF’s Capacity Development toolkit, scheduled for distribution to countries by mid-2025. This collaborative effort is made possible through a donor-supported trust fund, with contributions from various nations and generous support from the UAE in hosting this pivotal event.