VARA fines licensed VASP CoinMENA for AML programme control failures in Dubai
VARA-licensed VASPs face financial penalties where supervisory inspection finds AML programme control failures, regardless of full cooperation.
Change
On 22 June 2026 the Virtual Assets Regulatory Authority (VARA) fined CoinMENA FZE, a licensed Virtual Asset Service Provider, after supervisory inspections across its operations through FY 2025 found administrative systems-and-controls issues resulting in AML programme compliance failures.
Why it matters
The penalty attaches to a licensed VASP's AML programme, not to an unlicensed perimeter breach. VARA conducts supervisory inspections across a licensed provider's full market operations and imposes financial penalties where internal systems and controls produce AML compliance failures. Full cooperation, acceptance of findings, and a remediation plan did not remove the penalty. The notice identifies the failure at the level of the AML programme and systems and controls; it does not name the specific control components that failed.
Implications
- — VARA-licensed virtual asset service providers must maintain AML systems and controls that withstand supervisory inspection across full market operations — VARA imposes financial penalties where inspection finds AML programme compliance failures, independent of whether a perimeter or licensing breach exists.
- — VARA-licensed VASPs cannot rely on post-finding cooperation and remediation to avoid a penalty — VARA fined CoinMENA despite full cooperation, acceptance of findings, and a coordinated remediation plan, so AML control adequacy must be established before inspection, not after.
Who is affected
- — VARA-licensed virtual asset service providers in Dubai
- — AML compliance and systems-and-controls teams at licensed VASPs
- — Internal audit and assurance functions at Dubai-licensed virtual asset firms