UAE AML,CTF office cooperates with Kazakhstan on virtual assets

UAE AML,CTF office cooperates with Kazakhstan on virtual assets

UAE Executive Office of Anti-Money Laundering and Counter Terrorism Financing (EO AML/CTF) and the Financial Monitoring Agency of the Republic of Kazakhstan (FMA) signed a Memorandum of Understanding (MOU)  to enhance bilateral cooperation in the combatting of financial crimes with focus on virtual assets, public-private partnership (PPP), education and capacity building, and asset recovery.

Knowledge sharing will cover virtual assets, with both parties committed to improving regional and local understanding of the risks associated with ML/TF/PF related to virtual assets. It will also include public-private partnership initiatives with the counterparties agreeing to collaborate on the establishment of rules to exchange strategic and operational information between the public and private sectors to prevent and combat money laundering and terrorism financing risks.

Hamid AlZaabi, Director General of the EO AML/CTF, remarked that the signing of the MoU formalizes the commitment made by both countries to protect the integrity of the global financial system. “Effective strategic engagement and cooperation with international counterparties is essential in the fight against financial crime and is central to the UAE’s strategy. The signing of this Memorandum with the FMA in Kazakhstan is significant and comes at a time when the EO AML/CTF is working to strengthen its collaboration efforts with international partners over the long-term. We have decided to focus on four key areas to ensure that our coordination is targeted, allowing us to make a real impact in addressing the most pressing issues in AML/CFT today.”

Zhanat Elimanov, Chairman of the FMA, welcomed to MoU, and said, “This year the relationship between our countries in the AML/CFT field has reached a new level. We have managed to establish an effective exchange of strategic and operational information. This has contributed to the successful investigation of major cases on money laundering committed in our country. We are inspired by UAE’s achievements in implementing IT solutions in AML activities. With great respect, we will adopt this experience”.

UAE and Chinese central Banks go beyond Mbridge CBDC project with new MOU on CBDC collaboration

UAE and Chinese central Banks go beyond Mbridge CBDC project with new MOU on CBDC collaboration

The Central Bank of the UAE (CBUAE) and the People’s Bank of China has signed an MOU (Memorandum of Understanding) to enhance technical and technological cooperation in the development of central bank digital currencies (CBDC), going beyond initial collaboration on mBridge CBDC project.

As per the UAE Central Bank press release, the signings will enhance the strategic partnership between the two friendly nations and expand the bilateral relations in the financial and economic fields.

His Excellency Khaled Mohamed Balama, Governor of CBUAE, and His Excellency Pan Gongsheng, Governor of the People’s Bank of China, signed the MOU in Hong Kong in presence of the UAE Counsel General in Hong Kong, H.E. Shaikh Saoud Ali Almualla.

The CBDC MoU aims to enhance collaboration central bank digital currency development and strengthen cooperation between CBUAE and the Digital Currency Institute of the People’s Bank of China in the field of financial technology. The MoU will enable the exchange of information on best practices and regulations relating to digital currencies and support the implementation of joint initiatives and projects, including the “mBridge” project which is a multi central bank digital currencies platform in facilitating cross-border trade payments instantly and securely.

The MoU also includes cooperation in training and skills development for specialists on both sides and the exchange of bilateral visits to discuss matters of common interest.

Commenting on the signing, H.E Khaled Mohamed Balama, Governor of CBUAE, stated, “We look forward to strengthening cooperation with our partners on innovation and solutions in financial technology including central bank digital currency to support the growth of our economy and society.”

Earlier,according to a Chinese media article, the Bank of China announced during The 3rd “Belt and Road” Summit Forum a list of 369 practical cooperation projects of which was an MOU signed with FAB bank of cooperation in digital currency.

Concurrently Standard Chartered announced its participation in the pilot testing program of China’s central bank digital currency (CBDC) known as the digital Yuan (e-CNY or digital RMB). This move makes Standard Chartered the first foreign bank to engage with the country’s CBDC. According to the announcement, Standard Chartered, in collaboration with City Bank Clearing Services Co, will facilitate e-CNY transactions for its clients. It will allow them to purchase exchange and redeem e-CNY within their bank accounts.

 It is noteworthy that Standard Chartered’s backed digital asset platform, Zodia markets, received an In-Principle Approval (IPA) fulfilling the pre-requisites to receive a Financial Services Permission (FSP) for OTC broker-dealer in virtual assets by Abu Dhabi Global Market (ADGM), Abu Dhabi’s international financial center.

Standard Chartered’s , venture arm SC Ventures, an innovation and fintech investment arm recently partnered with Japanese SBI Holdings to establish a Digital Asset Joint Venture investment company in UAE. The parties intend to capitalize the vehicle with $100 million. The company will invest in DeFi, tokenization, consumer payments and metaverse.

Russian Central Bank to cooperate with UAE on CBDC project

Russian Central Bank to cooperate with UAE on CBDC project

The Russian news state agency reported that the Central Bank of Russia is ready to cooperate with UAE regulators to build a system for fast payments and settlements using digital ruble CBDC. The CBDC will be used by both individuals as well as businesses once the issue of KYC is resolved.

The comments were made by First Deputy Governor Olga Skorobogatova said at the Finopolis forum.

Skorobogatova stated, “We will work out the fast payment system and the CBDC [central banks digital currency – TASS] because the colleagues are ready with the digital ruble and we are ready. If we solve the issue of client identification, then I think we will be able to build up a normal system of payments for citizens and the business between the two our countries in a year at the least,” she said.

Moveover, the Bank of Russia continues testing the digital ruble in a limited pilot program that started in August with 13 private banks. At Finopolis, head of the Bank of Russia, Elvira Nabiullina said the pilot is on track and will expand next year to more users. 

As for the UAE, it is also piloting its CBDC project working with Blockchain tech players such as R3.

Bank of China announces MOU with UAE FAB bank on digital currency

Bank of China announces MOU with UAE FAB bank on digital currency

According to a recent Chinese media article, the Bank of China announced during The 3rd “Belt and Road” Summit Forum a list of 369 practical cooperation projects of which was an MOU signed with FAB bank of cooperation in digital currency.

The 32nd project listed cited, “Bank of China signed a digital currency cooperation memorandum with the First Bank of Abu Dhabi, and signed a global strategic cooperation memorandum with the Saudi International Electric Power and Water Company. The Industrial and Commercial Bank of China and the Hungarian Ministry of Economic Development signed a memorandum of understanding on cooperation.”

UAE FAB bank, (First Abu Dhabi Bank), recently announced the successful completion of its J.P Morgan’s Coin blockchain based cross border payments.

This comes as China and the UAE work together on the CBDC Mbridge project which is supposed to launch its MVP (Minimum viable Product) form soon.

In addition the Central Bank of the UAE is also preparing for its on CBDC issuance which is expected sometime in 2024. The Central Bank of UAE as well as The Saudi Central Bank SAMA are working both with R3 on their CBDC projects.

Dubai’s Department of Economy teams up with VARA to integrate virtual asset service offering to UAE market

Dubai’s Department of Economy teams up with VARA to integrate virtual asset service offering to UAE market

The Dubai Department of Economy and Tourism and the Virtual Assets regulatory Authority have signed an MOU to unify VASP ( virtual asset service provider) offering in the city.

The two entities will collaborate to offer a synchronised VA market assurance across the Emirate of Dubai – spanning [Public/Marketplace] Customer Care + Complaints; [Business] On-Site Inspection + Enforcement; [Business] VASP Registration + Licensing; [G2G + G2B + G2C] Education-Training-Knowledge Sharing.

As per the MOU, both parties agree to pool their complementary capabilities to lay robust foundations that will aid Dubai’s GDP contribution to the expanding global New Economy portfolio, reinforcing the city’s reputation as an attractive, innovative, and secure global hub for Virtual Asset Service Providers (VASPs), operators, and customers.

The MoU’s scope further strengthens VARA’s commitment to achieving full transparency and market conduct adherence across VASPs licensed to operate in Dubai, so that the reputation and credibility of the UAE as the preferred hub for the global sector are automatically established.

VASPs will benefit from seamless workflow processes between both parties with DET adding VARA activities to its system for virtual assets licence issuance. DET will undertake robust inspections and support VARA with in-situ enforcements including deploying penalties such as suspensions or revocations in cases of proven negligence or non-compliance with VARA rules, in addition to Business as Usual application renewals for VASPs that meet VARA’s requirements in full. VARA will be included on DET’s E-Permit system, which will enable one-touch point approvals on VA events and both parties will actively collaborate on awareness campaigns for VARA product and licensing updates, as well as data sharing protocols and legacy onboarding.

In keeping with Dubai Government’s commitment to improving business and market service delivery, this partnership between VARA and DET will also seek to leverage the Dubai Corporation for Consumers Protections & Fair Trade (DCCPFT) department at DET by upgrading it with specialist VA know-how from VARA, thereby optimising government resources and provide a transparent, seamless customer experience.

Both parties will also collaborate on marketing campaigns designed to raise general awareness towards consumer protection and developments in the virtual assets sector including communicating consumer protection information and advice. DET, in co-ordination with VARA, will also publish relevant notices and warnings, including penalty notices and consumer protection advisories, on its website and the DCCPFT website.

Central Bank of UAE and Hong Kong Monetary authority agree to cooperate on virtual asset regulations

Central Bank of UAE and Hong Kong Monetary authority agree to cooperate on virtual asset regulations

The Central Bank of the United Arab Emirates and the Hong Kong Monetary Authority in a bilateral meeting in Abu Dhabi on 29 May, have agreed to enhance collaboration between the two jurisdictions on virtual asset regulations and development.  

In addition, the two central banks facilitated discussions between their respective innovation hubs on joint fintech development initiatives and knowledge sharing efforts. A joint working group led by the CBUAE and HKMA, with support from the relevant stakeholders of the two jurisdictions’ banking sectors, will be formed to take forward the agreed initiatives.

Following the bilateral meeting, the two central banks, joined by senior executives from the UAE and Hong Kong banks, conducted a seminar on key opportunities to pursue between Hong Kong and the UAE. The seminar covered discussions on possible arrangements to facilitate better cross-border trade settlement, how UAE corporates can better utilize the Hong Kong financial infrastructure platforms to access Asia and the Mainland markets, as well as financial and investment solutions and capital markets opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area).

Banks operating in the UAE that participated in the seminar included First Abu Dhabi Bank, Abu Dhabi Islamic Bank, Emirates NBD, Industrial and Commercial Bank of China, Bank of China, HSBC and Standard Chartered, whilst participation from banks operating in Hong Kong included Bank of China, Citi, HSBC and Standard Chartered.

H.E. Khaled Mohamed Balama, Governor of the CBUAE, stated, “We are pleased to have welcomed the Hong Kong Monetary Authority and its delegation to the UAE as we look to build on our central banks’ existing and robust relations. During the day’s discussions, we explored deepening collaboration across several important areas including financial market infrastructure development and mutual opportunities for growth in digitization and technological advancement.”

Eddie Yue, Chief Executive of the HKMA, added, “These events enhanced the collaboration between the central banks of Hong Kong and the UAE in a number of important areas, and provided a platform for financial institutions and corporates from Hong Kong and the UAE to step up exchange and collaboration.  Hong Kong and the UAE are two financial centers sharing many complementary strengths and mutual interests, and there is much room for market participants from these two places to work together and build up the connectivity.”

This is not the first time the Central Bank of UAE has cooperated with Hong Kong Monetary Authority, prior to this they worked on the mBridge CBDC project.