The UAE Central Bank has issued new anti-money laundering and counter-terrorism financing guidance for financial institutions when dealing with virtual assets, such as cryptocurrencies and non-fungible tokens, it said on Wednesday.

The new guidance discusses the risks arising from dealing with virtual assets and virtual asset service providers, including on due diligence for licensed financial institutions when dealing with these customers and counterparties, the statement said.

The guidance, which will come into effect within a month, applies to banks, finance companies, exchange houses, payment service providers, registered hawala providers and insurance companies, agents and brokers.

The bank said the guidance takes Financial Action Task Force (FATF) standards into account.

The FATF in March 2022 included the UAE on a list of jurisdictions subject to increased monitoring, known as its “grey” list. The UAE responded by saying it was committed to working closely with FATF to improve.