ABU DHABI – The Financial Action Task Force (FATF) announced the UAE’s fulfillment of required standards and recommendations, showcasing the UAE’s dedication to fighting money laundering and terrorism financing, according to Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE).
“It highlights the collaborative efforts of various committees, entities, and national bodies, including the Central Bank and the National Committee for Combating Money Laundering, Terrorism Financing, and Financing of Illegal Organizations,” added Balama, who also chairs the National Anti-Money Laundering and Counter-Terrorism Financing Committee (NAMLCFTC).
“We stress the ongoing rigorous and supervisory efforts in this area, and the enhancement of cooperation with the Financial Action Task Force, aligning with the UAE’s established strategy to counter financial crime and illicit financial flows, aiming to protect the integrity and safety of the financial system in the UAE and worldwide,” he noted.
The CBUAE confirmed that the FATF’s announcement about the UAE completing the Action Plan’s requirements and exiting the enhanced monitoring process underscores the collective national endeavors to counter money laundering and terrorism financing. It also signifies the close collaboration with international partners and global institutions to maintain the financial system’s integrity in the UAE and around the world.
The UAE employs a comprehensive strategy to tackle money laundering, terrorism financing, and the financing of illegal organizations through cooperation and coordination among national entities, like law enforcement and regulatory authorities, and through constructive partnerships between the public and private sectors.
All necessary measures and procedures are implemented to boost compliance and awareness among financial institutions, businesses, and designated non-financial professions in fighting financial crimes and reducing their risks.
Chaired by the Central Bank’s Governor, the National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC) stands as a key pillar in the UAE’s AML/CFT national framework. It comprises over 32 entities in the country, representing law enforcement, regulatory authorities, the financial intelligence unit, and judicial authorities.
The National Committee has bolstered local efforts and implemented national action plans aligned with international standards through the creation of 8 specialized sub-committees adhering to the best global practices. It has crafted and distributed guiding manuals and policies to relevant entities, besides establishing a regulatory framework for information exchange between the public and private sectors and fostering coordination and close cooperation with international organizations.
Through various projects and initiatives, the Committee has safeguarded the UAE’s financial infrastructure against the threats of financial crimes. It has also leveraged technology and artificial intelligence to streamline the reporting and swift analysis of suspicious transactions, including the introduction of platforms like goAML and Fawri Tick.
The Central Bank of the UAE’s dedication to combating money laundering, terrorism financing, and the financing of illegal organizations reflects its crucial role in the national framework by continuously improving the regulatory, supervisory, and organizational framework to meet international standards.
This effort encompasses issuing essential regulations and guidelines for compliance, overseeing licensed financial institutions, managing risks, performing field examinations, enforcing effective administrative and financial penalties, and enhancing national capabilities and licensed financial institutions’ understanding of risks and compliance. These actions further solidify the UAE’s status as a leading global financial hub.
In 2023, the Central Bank conducted 181 field examinations of licensed financial institutions, with plans for more extensive future activities. Fines totaling AED 113.675 million were levied on banks, exchange houses, insurance companies, and Hawaladars for failing to adhere to regulations for combating money laundering and terrorism financing. Furthermore, 40 awareness sessions were held for the private sector, engaging over 35,000 participants to share information and reduce risks.
The Financial Intelligence Unit is crucial in representing the UAE at international forums concerning the verification of suspicious transactions and activities. Its achievements have significantly contributed to protecting both the UAE and the global economy from money laundering, terrorism financing, and various financial crimes.
The Financial Intelligence Unit successfully processed over 8,300 requests from law enforcement authorities and public prosecution through the Integrated Inquiry Management System during 2022-2023.
It delivered 710 technical reports to the public prosecution, primarily involving requests for searches, freezes, and obtaining information from counterpart global financial intelligence units, in addition to other requests supporting ongoing investigations into money laundering.
The Integrated Inquiry Management System facilitated the exchange and utilization of information among the UAE Financial Intelligence Unit, investigative authorities, and reporting entities. The number of memorandums of understanding and agreements signed between the Financial Intelligence Unit and its global counterparts reached 68.
The Financial Intelligence Unit has prioritized investing in national expertise and artificial intelligence technologies to expedite communication and information exchange.