The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has moved to strengthen its anti-money laundering, counter-terrorist financing, counter-proliferation financing and sanctions compliance framework after completing a public consultation on proposed enhancements. The regulator said the finalised changes follow industry feedback on Consultation Paper No. 1 of 2026 and are intended to reflect developments in UAE federal law while keeping ADGM’s regime broadly consistent with evolving global practice, including Financial Action Task Force recommendations.
According to ADGM, the updated framework applies across a wide range of regulated and supervised entities, including Authorised Persons, Recognised Bodies, Designated Non-Financial Businesses and Professions, and Non-Profit Organisations. The consultation proposed amendments to the Financial Services and Markets Regulations 2015 and the Anti-Money Laundering and Sanctions Rulebook, while also making related revisions to the General Rulebook, Glossary and Guidance and Policies Manual.
The regulator said the changes are designed to better align the ADGM framework with federal legislative developments. In its consultation paper, the FSRA said the proposals would have minimal impact on existing compliance requirements for most relevant persons, reflecting the general direction of industry feedback received during the consultation period.
One of the key themes in the consultation was the treatment of emerging risks linked to digital assets and transfers. The proposals include separate provisions for virtual asset and fiat-referenced token transfers, as well as the application of the travel rule. The draft framework also gives specific attention to transfers involving unhosted wallets, which have become a significant focus for regulators seeking to strengthen transaction traceability and reduce financial crime exposure.
The consultation also addressed customer risk assessment and due diligence expectations. According to the published summary of the proposals, certain categories of customers would be treated as higher risk, including foreign politically exposed persons, customers with exposure to high-risk jurisdictions and customers transferring assets to or from unhosted wallets. The proposed framework also included refinements to third-party customer due diligence, outsourced due diligence and business partner screening, with limitations on reliance on due diligence carried out in high-risk jurisdictions.
Another element of the consultation focused on governance and senior accountability. The proposed revisions would require anti-money laundering and terrorist financing policies, systems and business risk assessments to be approved by senior management. The consultation also suggested that where no other natural person can be identified, a senior manager may be treated as the beneficial owner for the purposes of the regime.
The FSRA launched the consultation in late April 2026 and set a deadline of 14 May 2026 for comments. The regulator invited feedback in writing through its consultation process before finalising the updated rules. The final announcement on 20 May 2026 said the enhancements had been completed after considering industry engagement and that the outcome reflects both market feedback and regulatory updates at the federal level.
ADGM’s move comes against the backdrop of broader supervisory attention to money laundering risk in the emirate’s financial centre. A separate ADGM risk review published in May 2026 said the overall money laundering and terrorist financing risk profile of legal persons and arrangements remained broadly stable compared with the 2024 assessment, even as the number of registered entities continued to rise. That context suggests the regulator is seeking to keep its framework current without imposing abrupt new burdens on existing firms.
The latest changes are likely to matter most for firms operating in higher-risk or fast-evolving segments, particularly those dealing with digital assets, cross-border transfers or complex customer structures. At the same time, ADGM’s framing of the reforms indicates an emphasis on clarification and alignment rather than a wholesale rewrite of the regime.
From a compliance perspective, the updated framework reinforces a familiar regulatory direction: stronger governance, more granular risk assessment and tighter controls around high-risk transactions and counterparties. For regulated firms, that means reviewing internal policies, ownership checks, third-party reliance arrangements and sanctions screening processes to ensure they remain consistent with the revised rulebook.
ADGM’s announcement underscores the growing convergence between financial crime regulation in international financial centres and broader national AML rules. It also reflects a continuing shift toward more explicit standards for digital-asset transfers, beneficial ownership analysis and senior management accountability, areas that are now central to regulatory expectations across the region.