ADJD Discusses Virtual Currency Regulations, Risks, and Ways to Prevent Misuse in Money Laundering
11 March 2024
The fifth Abu Dhabi Justice Partners Forum, organized by the Abu Dhabi Judicial Department, focused on virtual currency laws, associated risks and tactics to combat money laundering and terrorist financing. The forum underlined the duties of legal professionals in fighting against these crimes, in accordance with both UAE legislation and the best international practices.
The forum held at the ADJD head office via videoconference technology was attended by many lawyers registered with the Legal Affairs Division at the Department, along with representatives from law firms at both national and international levels. This highlights the significance of collaborating with lawyers as strategic partners to the judicial system, as part of the implementation of the vision of His Highness Sheikh Mansour bin Zayed Al Nahyan, UAE Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Abu Dhabi Judicial Department, to establish a judicial system that enhances the protection of society and the economy from the impacts of criminal activities and attains a globally equitable justice system, contributing to the competitiveness of Abu Dhabi and supporting its global position in attracting foreign investment and facilitating business operations.
During the forum, topics discussed included the definition and risks associated with virtual currencies, the relationship between blockchain technology and these currencies, the potential impact of virtual currencies on the global economy, deceptive techniques used in money laundering and terrorist funding, the involvement of regulatory organizations in combating these offenses, and the UAE's efforts to address money laundering through legislation and international agreements.
The forum specifically focused on money laundering offenses, their elements and background, the obligations placed on financial institutions, business sectors, and non-financial professions in terms of combating money laundering based on national laws, and the connection between virtual currencies and financial crimes. Attendees were provided with information about the characteristics of cryptocurrencies and their connection to money laundering and terrorist financing, as well as tactics for identifying suspicious transactions involving virtual currencies. The importance of implementing effective initiatives to fight against these offenses, including establishing internal regulations, providing risk assessment training, and analyzing cases through practical scenarios, was also emphasized.
The forum highlighted the responsibilities and roles of lawyers and legal experts in combating financial crimes. It specifically emphasized the importance of finding a middle ground between client privacy and ethical principles while reporting suspicious criminal activities. Furthermore, the forum emphasized the significance of conducting due diligence on customers when dealing with virtual currencies and staying informed about the challenges posed by new and advanced technologies.