Financial Crime World

Combating Money Laundering and Terrorist Financing in the United Arab Emirates

The Central Bank of the United Arab Emirates (CBUAE) has implemented a comprehensive set of measures to combat money laundering and terrorist financing in the country. These efforts aim to prevent, detect, and prosecute illicit financial activities, ensuring the stability and integrity of the UAE’s financial system.

Key Measures

  • Ratifying Decree 48: The CBUAE has ratified the Multilateral Administrative Agreement for the Automatic Exchange of Financial Information, granting the Ministry of Finance powers to implement anti-money laundering (AML) and combating the financing of terrorism (CFT) provisions in the UAE.
  • Conducting Thematic Reviews: The CBUAE conducts thematic reviews to identify risks and areas for improvement in the banking sector’s AML/CFT compliance.
  • Outreach and Awareness Events: The CBUAE organizes outreach events and awareness sessions to educate licensed financial institutions (LFIs) on AML/CFT guidelines and best practices.
  • Domestic and International Cooperation: The UAE’s National AML/CFT Committee, chaired by the Governor of the CBUAE, has revised the national strategy in line with risks identified in the Mutual Evaluation Report (MER) and the UAE’s National Risk Assessment. This strategy change is supported by an enhanced National Action Plan.
  • Enforcement: The CBUAE requires all LFIs to comply with UAE Decree Federal Law and Executive Regulations, as well as any CBUAE Regulations and directions. The bank imposes administrative and financial sanctions on non-compliant institutions.

Key Events

  • CBUAE imposes financial sanctions on 6 Hawala providers operating in the UAE: On December 15, 2021.
  • CBUAE imposes monitoring and financial sanctions on a bank operating in the UAE: On December 14, 2021.
  • CBUAE imposes financial sanctions on six exchange houses operating in the UAE: On October 4, 2021.
  • CBUAE imposes financial sanction on an exchange house operating in the UAE: On April 22, 2021.

Conclusion

The CBUAE’s measures demonstrate its commitment to combating money laundering and terrorist financing in the UAE. These efforts aim to ensure the stability and integrity of the country’s financial system, protecting it from illicit activities. By implementing effective AML/CFT measures, the UAE continues to maintain its position as a secure and trusted financial hub.