ESA Upholds Decision to Suspend DCCC

ESA Upholds Decision to Suspend DCCC

Time Stamp: February 6, 2024 11:07 AM
ESA Upholds Decision to Suspend DCCC PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The European Supervisory Authorities’ (ESAs) Joint
Board of Appeal has confirmed the decision of the European Securities and
Markets Authority (ESMA) to withdraw the recognition of Dubai Commodities
Clearing Corporation (DCCC).

The withdrawal stems from the European Commission’s
inclusion of the United Arab Emirates (UAE) on the list of high-risk third
countries with deficiencies in their anti-money laundering and
counter-financing of terrorism regulations.

The decision to withdraw recognition affects DCCC’s
status as a Tier 1 third-country central counterparty (CCP). It followed an
appeal brought by DCCC against ESMA’s withdrawal.

With the Joint Board of Appeal’s unanimous dismissal
of DCCC’s appeal, ESMA’s withdrawal decision has become fully operational.
Despite DCCC’s efforts, the suspension of ESMA’s decision, which was initiated
in October 2023, pending the appeal outcome, has expired.

For DCCC, the confirmation of withdrawal necessitates
strategic reassessment and potential adjustments to align with EU regulatory
requirements.

Future Considerations

The regulator mentioned that as the regulatory
landscape evolves, entities operating as CCPs and third-country entities must
remain vigilant in addressing compliance obligations to mitigate regulatory
risks and ensure continued market access.

The European Supervisory Authorities’ (ESAs) Joint
Board of Appeal has confirmed the decision of the European Securities and
Markets Authority (ESMA) to withdraw the recognition of Dubai Commodities
Clearing Corporation (DCCC).

The withdrawal stems from the European Commission’s
inclusion of the United Arab Emirates (UAE) on the list of high-risk third
countries with deficiencies in their anti-money laundering and
counter-financing of terrorism regulations.

The decision to withdraw recognition affects DCCC’s
status as a Tier 1 third-country central counterparty (CCP). It followed an
appeal brought by DCCC against ESMA’s withdrawal.

With the Joint Board of Appeal’s unanimous dismissal
of DCCC’s appeal, ESMA’s withdrawal decision has become fully operational.
Despite DCCC’s efforts, the suspension of ESMA’s decision, which was initiated
in October 2023, pending the appeal outcome, has expired.

For DCCC, the confirmation of withdrawal necessitates
strategic reassessment and potential adjustments to align with EU regulatory
requirements.

Future Considerations

The regulator mentioned that as the regulatory
landscape evolves, entities operating as CCPs and third-country entities must
remain vigilant in addressing compliance obligations to mitigate regulatory
risks and ensure continued market access.

Time Stamp:

More from Finance Magnates