Combating Money Laundering and Terrorist Financing in the United Arab Emirates

The Central Bank of the United Arab Emirates (CBUAE) plays a crucial role in preventing money laundering (ML) and terrorist financing (TF), while also implementing international standards. In this article, we will delve into some of the key initiatives and activities undertaken by the CBUAE to achieve these goals.

Outreach and Awareness

The CBUAE conducts various outreach and awareness activities to educate stakeholders about the importance of combating ML/CFT. These efforts include:

• Thematic Reviews: Conducted to assess the effectiveness of existing regulations and identify areas for improvement.
• Awareness Events: Organized to raise awareness among financial institutions, businesses, and individuals about the risks associated with ML/CFT.
• Participation in Forums: Engaging in international forums to discuss best practices and share knowledge on combating ML/CFT.

Domestic and International Cooperation

The CBUAE works closely with various stakeholders and authorities to implement recommendations from the Mutual Evaluation Report (MER). This includes:

• Enhanced National Action Plan: A comprehensive plan outlining strategies for implementing international standards and best practices.
• Collaboration with Authorities: Working together with regulatory bodies, law enforcement agencies, and other relevant organizations to share information and coordinate efforts.

Enforcement

The CBUAE ensures that licensed financial institutions (LFIs) comply with UAE Decree Federal Law, Executive Regulations, and CBUAE regulations. In cases where non-compliance is detected, the bank imposes administrative and financial sanctions, which are then published as outcomes of enforcement actions.

By implementing these initiatives and activities, the CBUAE demonstrates its commitment to combating ML/CFT and upholding international standards in the United Arab Emirates.