Abu Dhabi Global Market (ADGM) Registration Authority (RA)
ADGM RA announce extension of a moratorium on accepting new licence applications to become a registered company services provider
The ADGM’s RA has released a notice of extending a moratorium on accepting new licence applications to become a registered company services provider (CSP) within its jurisdiction.
This suspension applies not only to any modifications to the business activities of existing ADGM license holders, but also to new applicants interested in CSP (Code: 7025).
During this period of suspension, no new applications for activities falling under the CSP license will be accepted until the conclusion of the moratorium, unless a specific exemption is granted by the registrar.
The decision to implement this moratorium is driven by the regulator’s need to assess the current ecosystem and make any necessary amendments and adjustments to enhance the quality of services provided.
The moratorium re-commenced on 1 January 2024, and will be applicable until 30 June 2024.
Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM)
FSRA announces revisions to its anti-money laundering and sanctions rules and guidance
The ADGM’s FSRA has made revisions that clarify requirements in their AML rulebook for virtual asset service providers.
In particular, the FSRA have provided greater clarity surrounding the FATF “Travel Rule” and wire transfers applying to virtual assets. The updated guidance states:
“The regulator expects compliance by Authorised Persons and Recognised Bodies with ‘FATF Recommendation Number 15’, and ‘FATF Recommendation Number 16’ that include requirements to obtain, hold, and transmit originator and beneficiary information and to not allow transfers where such information is lacking including where the value transfer involves virtual assets”.
The revisions aim to bolster and harmonise the ADGM’s AML requirements with international standards. The regulator expects authorised rersons and recognised bodies to monitor and scrutinise wire transfers that do not contain complete originator information and prescribes what this originator
information should be.
FSRA finalises revisions to its fees framework
Following public consultation in October 2023, the FSRA have finalised their revision of the FSRA regulations and the FEES rules. The framework was amended to better reflect the FSRA’s statutory objectives, which are:
- promoting and enhancing the integrity of the financial system in ADGM;
- promoting the safety and soundness of authorised firms; and
- securing an appropriate degree of protection for users and prospective users of ADGM.
The FSRA has introduced comprehensive revisions throughout the entire FEES regulation. ADGM authorised persons, current or prospective, are invited to read through the new regulations and consider the amendments alongside their regulated activities.
In addition to these revisions, the FSRA has streamlined the classifications of controlled functions and recognised functions. This alignment with best practices ensures that appointments to essential roles within an authorised firm require approval from the appropriate regulatory body.
The changes have come into effect as of 1 January 2024.
Dubai Financial Services Authority (DFSA) of Dubai International Financial Centre (DIFC)
DFSA seeks public comment on their updates on the regulation of Crypto tokens consultation paper
The DFSA have issued a consultation which seeks public comment on proposals for amendments to their regulatory regime for Crypto tokens, signalling their intent to grow and develop their virtual assets presence in the new year. Some key proposed amendments include:
- reducing the application fee for Crypto token recognition from USD 10,000 to USD 5,000;
- relaxing some requirements on reserve assets for fiat Crypto tokens (stablecoins);
- allowing external funds to invest up to 10% of their gross asset value in Crypto tokens under set conditions;
- requiring firms providing custody to rationalise and disclose storage arrangement and segregation policies and risks to clients; and
- travel rule compliance.
The deadline for providing comments to the consultation is 4 March 2024. The DFSA invites present and future Crypto token stakeholders to comment.
DFSA seeks public comment on their proposed changes to the DFSA’s audit regime
The DFSA have issued a consultation which seeks to make amendments to the regime for oversight of auditors, as set out in the auditor module and glossary module of the DFSA rulebook and the regulatory law.
The proposed measures are designed to enhance the current regulatory framework with a focus on improving the quality of audits. Additionally, these proposals aim to resolve various issues that have been identified in the DFSA’s oversight of registered auditors and audit principals. moreover, the consultation seeks to bring about greater alignment with international standards. Among the key areas that the DFSA’s proposals aim to delve into include:
- whether a person shall not play a substantial role in the preparation of an audit unless that person is a registered auditor;
- requiring registered auditors to appoint a designated senior officer, who is fit & proper and has the the day-to-day management, supervision, and control of the RA.
- introducing principles for RAs which cover integrity, due skill, care and diligence, management, system and controls, resources, professional conduct, conflict of interest, compliance with high standards of corporate governance, relations with regulators and confidence.
The deadline for providing comments to the consultation is 1 March 2024.
