UAE Launches Comprehensive Plan to Combat Money Laundering and Terrorism Financing

The UAE has drawn up a nationwide action plan against the financing of terrorism and money laundering.

The UAE Cabinet on Monday approved the 2024-27 National Strategy on Money Laundering, Terrorist Financing and Proliferation Financing.

More details of the initiative were announced on Wednesday.

It has 11 goals, which include “legal and regulatory reforms that the UAE will take to curb the impact of illegal activities on society”, state news agency Wham reported.

The World Bank Group approach was used by the National Committee Headquarters to establish the plan, which ensures adherence to international standards.

Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the High Council Supervising the National Anti-Money Laundering Strategy, Sheikh Abdullah bin Zayed, praised the long-term plan.

“This initiative follows the Financial Action Task Force’s decision to remove the UAE from the gray list in February 2024 and underlines the UAE’s commitment to uphold high international standards,” Sheikh Abdullah added.

“The UAE’s proactive approach not only protects the integrity of the global financial system, but also strengthens our position as a leading international financial and trading hub.

“The UAE is committed to staying ahead of emerging threats by continuously improving our AML/CFT framework, ensuring our financial system is safe, resilient and efficient.”

The strategy focuses on risk-based compliance, efficiency and sustainability.

This includes improving national and international coordination and strengthening the fight against illegal activities to improve information exchange to ensure oversight of measures to tackle money laundering, financial crimes and private sector proliferation financing.

This will help improve data collection and analysis, tailor legislation to emerging risks and support transparency.

Emphasis will be placed on assessing the risks posed by virtual assets and the rapidly evolving patterns of cybercrime. The implementation of the project will be monitored by the National Committee Headquarters.

Regular progress reports will be submitted to the High Commission for Overseeing the National Strategy to Combat Money Laundering and Terrorist Financing.

Taking action
The UAE has made significant progress in the fight against financial crime in recent years.

In August, the government amended laws to prevent money laundering and the financing of terrorism and illegal organisations. The changes are designed to support efforts to tackle financial crime by coordinating the country’s technical compliance with international treaties and recommendations.

This led to the formation of a National Committee on Anti-Money Laundering, Terrorism and Financing of Unlawful Organisations.

Last month, the UAE Central Bank fined a bank operating in the emirate 5.8 million dirhams ($1.6 million) for violating the country’s laws on money laundering and anti-terrorist financing.

In 2021, after passing the Anti-Money Laundering and Anti-Terrorist Financing Act of 2018, the government established the Executive Office for Anti-Money Laundering and Anti-Terrorist Financing. The value of fines imposed by regulatory authorities in the anti-money laundering and anti-terrorist financing sector reached 249.2 million ($67.9 million) from January to October last year, compared to 76 million dirhams in 2022.

In a sign of progress in recent years, the country was removed from the Financial Action Task Force’s gray list this February.

The FATF is a global organization that fights money laundering and the financing of terrorism.

The decision to remove the United Arab Emirates from the watchdog’s enhanced watch list comes after a detailed review of its economy. Emirates has been included in the gray list in 2022.