The European Securities and Markets Authority (ESMA) has withdrawn three CCPs from the United Arab Emirates from its list of recognised third-country central counterparties. The decision was prompted by the inclusion of UAE on the European Commission’s list of high-risk third countries that present strategic deficiencies in their national anti-money laundering (AML) and terrorism counter financing regime.
A press release from ESMA reveals that the three withdrawn CCPs are Dubai Commodities Clearing Corporation, Dubai Clear, and Nasdaq Dubai. In order to be recognised by ESMA, all third-country CCPs must meet the conditions set out by the European Market Infrastructure Regulation (EMIR). This includes not being on the Commission’s AML blacklist.
In order to minimise market disruption, the three CCPs have been given an adaptation period of three months. They will no longer be permitted to provide clearing services to clearing members or trading venues established in the EU from 25 October 2023.