ESMA withdraws third-country recognition from UAE CCPs
26 July 2023 UAE
Image: AdobeStock/arbalest
The European 网爆吃瓜 and Markets Authority (ESMA) has withdrawn third-country recognition from three UAE-based central counterparties.
This follows the decision by the European Commission regarding its compliance with anti-money laundering standards.
As a result, the Dubai Commodities Clearing Corporation, Dubai Clear LLC and Nasdaq Dubai Ltd are no longer included in ESMA鈥檚 .
To be recognised by ESMA, a third-country CCP must meet all cumulative conditions specified under Article 25(2) of the European Market Infrastructure Regulation (EMIR), including the requirement that it does not appear in the AML blacklist drawn up in accordance with the AML Directive.
The European Commission has highlighted 鈥渟trategic deficiencies鈥� in the UAE鈥檚 anti-money laundering and counter financing of terrorism (AML/CFT) regime and added the jurisdiction to its list of high-risk countries on 16 March 2023.
ESMA has given the three CCPs three months to adapt to its judgement, dictating that these clearing houses will no longer be authorised to provide clearing services to clearing members or trading venues established in the EU from 25 October.
This reduces the number of CCPs from non-EU countries that are recognised to provides services in the EU to 23.
This follows the decision by the European Commission regarding its compliance with anti-money laundering standards.
As a result, the Dubai Commodities Clearing Corporation, Dubai Clear LLC and Nasdaq Dubai Ltd are no longer included in ESMA鈥檚 .
To be recognised by ESMA, a third-country CCP must meet all cumulative conditions specified under Article 25(2) of the European Market Infrastructure Regulation (EMIR), including the requirement that it does not appear in the AML blacklist drawn up in accordance with the AML Directive.
The European Commission has highlighted 鈥渟trategic deficiencies鈥� in the UAE鈥檚 anti-money laundering and counter financing of terrorism (AML/CFT) regime and added the jurisdiction to its list of high-risk countries on 16 March 2023.
ESMA has given the three CCPs three months to adapt to its judgement, dictating that these clearing houses will no longer be authorised to provide clearing services to clearing members or trading venues established in the EU from 25 October.
This reduces the number of CCPs from non-EU countries that are recognised to provides services in the EU to 23.
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