Financial Crime World

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UAE Reinforces Banking Regulations to Prevent Financial Crime

The United Arab Emirates (UAE) has taken significant steps to strengthen its banking regulations and prevent financial crime. In a bid to combat money laundering and the financing of terrorism, the UAE government has established a dedicated department within the Central Bank to handle all anti-money laundering matters.

Anti-Money Laundering Department Established

  • The Anti-Money Laundering Department was set up in August 2020 with the objective of examining Licensed Financial Institutions (LFIs), ensuring adherence to the UAE’s AML/CFT legal and regulatory framework, and identifying relevant threats, vulnerabilities, and emerging risks concerning the UAE’s financial sector.
  • This department plays a crucial role in preventing money laundering and other financial crimes in the country.

Federal Anti-Money Laundering Courts Established

  • In November 2020, Minister of Justice issued ministerial resolutions on setting up specialized courts for money laundering crimes within the framework of federal judiciary in the courts of Sharjah, Ajman, Umm Al Quwain, and Fujairah.
  • Each court will have minor, major, and appeals circuits for hearing these types of crimes.

Local Anti-Money Laundering Court Established

  • A local anti-money laundering court was established in Abu Dhabi to support the UAE’s efforts to combat finance-related crimes and persecute perpetrators through legitimate procedures in coordination with relevant authorities.
  • This court will help to ensure that money launderers are held accountable for their actions.

Anti-Money Laundering Laws Implemented

  • Federal Decree No. 20 of 2018 on Anti-Money Laundering and Countering the Financing of Terrorism was issued to develop the legislative and legal structure of the nation to ensure compliance with international standards on anti-money laundering and countering the financing of terrorism.
  • This decree sets out clear guidelines for preventing money laundering and terrorist financing in the UAE.

Executive Office of the Anti-Money Laundering Established

  • The UAE Cabinet adopted the formation of the Executive Office of the Anti-Money Laundering and Countering Financing of Terrorism in 2020, which is responsible for overseeing the implementation of AML/CFT measures across the country.
  • This office will help to ensure that anti-money laundering efforts are effective and coordinated.

Anti-Money Laundering Platform Launched

  • The Financial Intelligence Unit (FIU) of the Central Bank launched the anti-money laundering platform ‘goAML’, developed by the United Nations Office on Drugs and Crime (UNODC), to report and curb organized crimes.
  • All financial entities and Designated Non-Financial Businesses or Professions (DNFBPs) are required to register on this system.

Fawri Tick: A Smart System to Prevent Financial Crimes

  • Fawri Tick is a smart system that integrates details of financial crimes with various federal and local authorities concerned, facilitating communication and decision-making among them.
  • It enables the authorities to take necessary action within few hours.

These initiatives demonstrate the UAE’s commitment to preventing financial crime and maintaining the integrity of its financial system. By strengthening its banking regulations and implementing effective anti-money laundering measures, the UAE aims to maintain a secure and stable financial environment for both domestic and international businesses.