Financial Crime World

Central Bank of the United Arab Emirates (CBUAE) Anti-Money Laundering and Combating Financing of Terrorism Efforts

The Central Bank of the United Arab Emirates (CBUAE) has implemented several key strategies to combat money laundering and the financing of terrorism.

Outreach

The CBUAE conducts thematic reviews, organizes awareness events for its supervised sectors, and participates in forums to discuss issues and challenges facing the banking industry. These initiatives aim to promote a culture of compliance and raise awareness about anti-money laundering (AML) and combating financing of terrorism (CFT) risks.

  • Thematic Reviews: The CBUAE conducts regular thematic reviews to assess the effectiveness of AML/CFT controls in Licensed Financial Institutions (LFIs).
  • Awareness Events: The bank organizes awareness events for its supervised sectors, including seminars, workshops, and training sessions, to educate them on AML/CFT risks and best practices.
  • Industry Forums: The CBUAE participates in industry forums to discuss issues and challenges facing the banking industry and to share knowledge and expertise.

Domestic and International Cooperation

The UAE’s National AML/CFT Committee has revised the country’s national strategy to align with identified risks. This change is supported by an enhanced National Action Plan that outlines initiatives and actions for domestic stakeholders and authorities.

  • National Strategy: The revised national strategy aims to strengthen AML/CFT controls and reduce the risk of money laundering and terrorist financing.
  • National Action Plan: The enhanced National Action Plan outlines specific initiatives and actions for domestic stakeholders and authorities, including LFIs, financial intelligence units, and law enforcement agencies.

Enforcement

The CBUAE requires all Licensed Financial Institutions (LFIs) to comply with UAE Decree Federal Law, Executive Regulations, and any CBUAE Regulations and directions. The bank publishes the outcome of administrative and financial sanctions, including penalties imposed as a result of enforcement action.

  • Compliance: LFIs are required to implement effective AML/CFT controls and report suspicious transactions to the Financial Intelligence Unit (FIU).
  • Sanctions: The CBUAE imposes administrative and financial sanctions on LFIs that fail to comply with AML/CFT regulations, including fines, penalties, and revocation of licenses.

Recent Enforcement Actions

The CBUAE has taken several actions in the past related to AML/CFT enforcement, including:

  • Imposing financial sanctions on six Hawala providers operating in the UAE
  • Imposing monitoring and financial sanctions on a bank operating in the UAE
  • Imposing financial sanctions on six exchange houses operating in the UAE
  • Imposing a financial sanction on an exchange house operating in the UAE
  • Imposing a sanction on an individual