For a considerable time, the UAE has been acknowledged as a significant hub for commerce and finance; however, it has been actively taking measures to guarantee that its standing as a centre of global business is not compromised by financial crime. Over the years, the UAE has shown its dedication to combating international financial crime, such as terrorism financing and money laundering, by adopting various steps and cooperating with other countries and international organizations.
To tackle financial crime, the UAE has implemented several laws and regulations that reinforce the country’s anti-money laundering and counter-terrorism financing frameworks. These measures include the AML/CFT Law, passed in 2018, and the UAE Cabinet Resolution No. (10) of 2019, which lays out the implementing regulations for the AML/CFT Law.
To better detect and stop financial crimes, the AML/CFT Law and its implementing regulations have introduced a range of measures. These include requirements for financial institutions to conduct customer due diligence, maintain transaction records, and report suspicious activities to the authorities. Additionally, the regulations establish a central database of beneficial ownership information, which aims to prevent the exploitation of anonymous companies for money laundering or terrorism financing.
Apart from the regulatory measures, the UAE has created several institutions and organizations to fight financial crime. Among these are the Financial Intelligence Unit (FIU), which collects, analyses, and disseminates financial intelligence to the appropriate authorities. The UAE has also established a National Committee for Combatting Money Laundering and the Financing of Terrorism and Illegal Organizations, which oversees and enforces the country’s AML/CFT policies in a coordinated manner.
The UAE has been collaborating with international organizations and other nations to combat financial crime. For instance, in 2019, the UAE joined the Financial Action Task Force (FATF), a global body that establishes guidelines and advocates for effective implementation of legal, regulatory, and operational measures to counter money laundering, terrorism financing, and other similar threats to the global financial system’s integrity. Moreover, the UAE has signed multiple agreements with other countries to strengthen cooperation and information sharing in the battle against financial crime.
The Executive Office of AML/CTF has issued a statement in response to the recent FATF report, acknowledging the UAE’s significant progress in strengthening its AML/CFT framework. In the statement released on February 23, 2023, the UAE expressed its commitment to advancing global efforts to combat financial crime and safeguard the international financial system from malicious actors. The UAE has invested heavily in its AML/CFT system and dedicated significant resources to disrupting illicit financial flows in a proactive and coordinated manner. The statement emphasized the importance of international cooperation to strengthen collective efforts against financial crime, and the UAE’s commitment to maintaining its position as a trusted and resilient economy.
Overall, the UAE’s commitment to combatting international financial crime is clear. Through the introduction of strong regulatory measures, the establishment of dedicated institutions and bodies, and collaboration with international partners, the UAE is working to maintain its position as a leading centre for international business while also safeguarding the integrity of the global financial system.
In summary, the UAE has demonstrated a strong dedication towards combating global financial crime. By implementing stringent regulatory measures, establishing specialized institutions, and collaborating with international partners, the UAE is working towards protecting the credibility of the global financial system while maintaining its status as a prominent centre for international commerce.