Financial Crime World

UAE Ministry of Finance Granted Powers to Implement Automatic Exchange of Financial Information

The United Arab Emirates (UAE) Ministry of Finance has been granted powers to implement the Multilateral Administrative Agreement for the Automatic Exchange of Financial Information, also known as Decree 48. This move is a significant step towards enhancing financial transparency and combating tax evasion in the UAE.

Key Responsibilities

According to the decree, the Ministry of Finance will be responsible for taking the necessary measures to put in place the provisions outlined in the agreement. This includes:

  • Implementing the automatic exchange of financial information
  • Ensuring compliance with international standards and best practices
  • Enhancing financial transparency and combating tax evasion

CBUAE Conducts Thematic Reviews and Outreach

The Central Bank of the United Arab Emirates (CBUAE) has been conducting thematic reviews and outreach activities aimed at promoting awareness about anti-money laundering (AML) and combating the financing of terrorism (CFT). The bank’s efforts include:

  • Presentations on AML/CFT guidance for licensed exchange houses, legal persons and arrangements, real estate and precious metals and stones sectors
  • Thematic reviews to identify industry challenges and best practices
  • Participation in forums to discuss industry challenges and best practices

Domestic and International Cooperation

The UAE’s National AML/CFT Committee (NAMLCFTC), chaired by the Governor of the CBUAE, has revised the country’s national strategy to combat money laundering and terrorism financing. The committee has also developed an enhanced national action plan outlining initiatives and actions with multiple domestic stakeholders and authorities.

  • Close cooperation with international organizations such as the United Nations Office on Drugs and Crime and the Basel Institute AML Index
  • Definition of compliance with international recommendations as a key strategic objective and focus area for 2020-2021

Enforcement

The CBUAE has been actively enforcing regulations and imposing sanctions on financial institutions that fail to comply with UAE Decree Federal Law and Executive Regulations. This includes:

  • Imposing financial sanctions on several hawala providers, exchange houses, and a bank operating in the UAE
  • Publishing the outcome of administrative and financial sanctions, including penalties imposed as a result of enforcement action