ABU DHABI: The Central Bank of the UAE (CBUAE) affirmed that the Financial Action Task Force (FATF) announcement regarding the UAE’s completion of the requirements of the agreed Action Plan with the FATF and its exit from the enhanced monitoring process reflects the synergy of national efforts to combat money laundering and terrorism financing. It also reflects close cooperation with international partners and global institutions to safeguard the integrity of the financial system in the UAE and globally.
The UAE relies on a clear strategy to combat money laundering, terrorism financing, and the financing of illegal organisations through cooperation and coordination among national entities, such as law enforcement agencies and regulatory authorities, in addition to constructive partnerships between the public and private sectors. All effective measures and procedures are taken to enhance compliance and awareness among financial institutions, businesses, and designated non-financial professions in combating fi
nancial crimes and mitigating their risks.
The National Anti-Money Laundering and Combatting Financing of Terrorism and Financing of Illegal Organisations Committee (NAMLCFTC), chaired by the Governor of the Central Bank, is one of the central pillars in the UAE’s AML/CFT national framework. It includes more than 32 entities in the country representing law enforcement agencies, regulatory authorities, the financial intelligence unit, and judicial authorities.
The National Committee has strengthened local efforts and implemented national action plans in line with international requirements and recommendations through the establishment of 8 specialised sub-committees operating according to the best global practices. It has developed and disseminated guiding manuals and policies to relevant entities, in addition to adopting a regulatory framework for information exchange between the public and private sectors and enhancing coordination and close cooperation with international entities.
The National Committee,
through projects and initiatives, has protected the financial infrastructure of the UAE from the risks of financial crimes. It has also invested in technology and artificial intelligence to facilitate reporting and expeditious analysis of suspicious transactions and submit necessary reports, including the platforms (goAML) and (Fawri Tick).
The commitment of the Central Bank of the UAE to combat money laundering, terrorism financing, and financing of illegal organisations is within its vital role in the national system by continuously enhancing the regulatory, supervisory, and organisational framework in line with international standards. This includes issuing necessary regulations and guidelines for compliance and guidance, governance of licensed financial institutions, risk management, conducting field examinations, implementing effective administrative and financial penalties, as well as building national capacities and strengthening the understanding of licensed financial institutions of risks and compli
ance, thereby enhancing the UAE’s position as a global financial centre.
The Central Bank has conducted 181 field examinations of licensed financial institutions in 2023, with plans for future expansion. Additionally, fines totalling AED 113.675 million were imposed on banks, exchange houses, insurance companies, and Hawaladars for non-compliance with regulatory requirements for combating money laundering and terrorism financing in 2023. Moreover, 40 awareness sessions were organised for the private sector with the participation of more than 35,000 attendees to exchange information and mitigate risks.
The Financial Intelligence Unit plays a pivotal role in representing the UAE in international forums in the context of verifying suspicious transactions and activities. It has achieved many accomplishments contributing to protecting the UAE and the global economy from money laundering, terrorism financing, and various financial crimes.
The Financial Intelligence Unit successfully processed over 8300 requests
from law enforcement authorities and public prosecution through the Integrated Enquiry Management System during the years 2022-2023. It sent 710 technical reports to the public prosecution, mostly comprising requests for search, freeze, and obtaining information from counterpart global financial intelligence units, in addition to other requests to support ongoing investigations into money laundering. The Integrated Enquiry Management System facilitated the exchange and utilisation of information among the UAE Financial Intelligence Unit, investigative authorities, and reporting entities. The number of memoranda of understanding and agreements signed between the Financial Intelligence Unit and counterpart global units reached 68.
The Financial Intelligence Unit focused on investing in national expertise and artificial intelligence technologies to accelerate communication and information exchange.
Khaled Mohamed Balama, Governor of the CBUAE and Chairman of the NAMLCFTC, said, “The FATF’s announcement of the
UAE’s completion of the required standards and recommendations, reflects the UAE’s steadfast commitment to combating money laundering and terrorism financing. It underscores the efforts made by various committees, entities, and national bodies to combat financial crimes, including the Central Bank and the National Committee for Combating Money Laundering, Terrorism Financing, and Financing of Illegal Organisations. We emphasise the continuation of radiant and supervisory efforts in this regard, and enhancing cooperation with the Financial Action Task Force in line with the UAE’s entrenched approach to combating financial crime and illicit financial flows, aiming to ensure the integrity and safety of the financial system in the UAE and globally.”
Source: Emirates News Agency