UAE boosts global finance standing with strengthened AML/CFT reforms

UAE Strengthens Global Financial Leadership with Enhanced AML/CFT Framework

The UAE has made significant progress in improving its anti-money laundering, countering the financing of terrorism and proliferative financing (AML/CFT/CPF) framework.

The action is a part of a larger initiative to establish Dubai as a major international financial center, according to WorkFusion. The UAE complies with top international standards for fighting financial crime by combining robust governance with cutting-edge technology.

An example of the UAE’s technology-forward strategy is a recent change in the banking industry. The introduction of 24/7 USD cross-border payments in the Middle East is the result of significant partnerships between Citi and Emirates NBD.

In addition, UAE-based Mashreq’s NeoPay terminals now facilitate integrated payments for inter-bank peer-to-peer and person-to-person business transactions via mobile apps, demonstrating the widespread adoption of mobile technology in financial services.

The country’s rapid adoption of open banking is outpacing even European progress. According to the international banker, the UAE, along with Bahrain and Saudi Arabia, is leading the way in the Middle East by effectively sharing knowledge and leveraging best practices from the region.

The UAE government officially announced the National Strategy for AML/CFT/CPF 2024-2027 on September 2, 2023, following extensive consultations with the private sector. The plan fixes earlier strategic flaws found by the Financial Action Task Force (FATF) and conforms to international standards. As a result of the UAE’s enhanced regulatory procedures, the FATF recognized these efforts by removing the country off its gray list in February 2024.

These measures include increasing outbound mutual legal assistance requests against money laundering and terrorist financing, improving oversight of non-financial businesses and providing additional resources to the Financial Intelligence Unit. These actions reflect a deeper understanding of risks and stronger enforcement of compliance measures across financial and non-financial sectors.

His Highness Sheikh Abdullah bin Zayed Al Nahyan commented on the UAE’s proactive regulatory approach, highlighting its role in strengthening the UAE’s position as an international financial and trade hub. Echoing his sentiments, Global Ventures’ Simon Sharp noted the expected growth in the UAE’s fintech sector, which he predicts will almost double by 2029, benefiting startups and attracting global players.

Also, Hisham Farooq, CEO of Grand Thornton UAE, noted the broader economic benefits of these stricter regulatory strategies, citing increased activity in real estate, e-commerce and technology.

The UAE’s transformation from a primarily oil-based economy to a diversified powerhouse is part of its broader economic strategy. With the financial sector now the third largest in the UAE and a significant contributor to the country’s non-oil GDP, the future promises not only for the UAE to continue its economic diversification but also to cement Dubai’s position as a major global financial centre. .