What virtual asset risks did the UAE identify in its 2024 risk assessment?
The 2024 assessment recognised the virtual asset sector as a rising area of risk. Virtual assets can move value quickly, across borders and with a degree of anonymity, which makes them attractive for laundering proceeds and for cyber-enabled crime. The report noted threats including cyberattacks involving virtual assets and the exploitation of any regulatory gaps in the sector.
The UAE has responded by bringing virtual asset service providers firmly within the AML framework. VASPs must apply customer due diligence, screen against sanctions lists, monitor transactions and report suspicious activity, and they must assess the risks arising from new technologies before deploying them. Firms that interact with the sector should factor these risks into their own assessments.
Legal Reference (UAE):
· UAE National Risk Assessment 2024 (NAMLCFTC): identifies the virtual asset sector and cyber-enabled crime as emerging risks.
· Cabinet Resolution No. 134 of 2025 (Executive Regulations), Article 24: risks from new and developing technologies must be assessed.
For more details, consult the full text of the National Risk Assessment or seek guidance from your AML compliance officer.
AML regulations for Virtual Asset Service Providers in the UAE