UNITED ARAB EMIRATES Law and Practice Contributed by: Arnold Krutilins and Gabrielle Margerison (nee Lowe), White & Case LLP
• The VARA stipulates that VASPs must have pro - cedures for ensuring that all virtual assets transfer and settlement services carried out for a client are authorised by the client, and that the VASP is act - ing in line with the client’s instructions. If any virtual assets transmission/transfer, and/or settlement processed by a VASP is not authorised by the client, or is not carried out in line with the client’s instructions, the VASP: (a) will, as soon as practicable but in all events within 24 hours of becoming aware of the erro - neous execution, refund the client or otherwise restore the client’s account to the state it would have been in, had the wrongful transmission or transfer, and/or settlement not been effected; and (b) is liable to the client in respect of the loss suffered by the client as a direct result of the VASP’s actions or omissions. • The DFSA COB Rulebook Module states that if an authorised firm is responsible for an unauthorised or incorrectly executed payment transaction, or for the non-execution of a payment transaction, and the user’s payment account has been incorrectly debited, it must promptly and within three busi - ness days restore the user’s payment account to the state it would have been in had the payment transaction been correctly executed.
• The FSRA, in its COB Rulebook Module, states that where an executed payment transaction was not authorised by the payer, the payment service provider must: (a) refund the amount of the unauthorised pay - ment transaction; and (b) where applicable, restore the debited pay - ment account to the state it would have been in had the unauthorised payment transaction not taken place. The payment service provider must provide a refund as soon as practicable, and in any event no later than the end of the day following the day on which it becomes aware of the unauthorised payment transac - tion, although the requirement to provide a refund does not apply where the payment service provider has reasonable grounds to suspect fraudulent behaviour by the payment service user.
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