UAE augments financial crime regulations with AML strategy

As part of the new legislation, the UAE established two major committees, including the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism, and the Supreme Committee for overseeing the national AML strategy. Through these entities, the region’s authorities intend to simplify compliance and enforcement procedures related to AML and CFT, minimising bureaucracy and optimising communication between businesses and regulators. Additionally, the laws focus on transparency, efficiency, and accountability, aiming to ensure that AML and CFT plans are appropriately applied across all sectors, including financial institutions and designated nonfinancial organisations and professions.

Furthermore, by falling in line with international standards, specifically those imposed by the Financial Action Task Force, analysts mention that the UAE can increase its credibility within the global financial community. Also, the current adjustments are projected to increase international investment, as well as foster partnerships and strengthen the UAE’s position in the global financial ecosystem.

When the Financial Action Task Force initially announced that it removed the UAE from its grey list, the EU disagreed with this decision, with the union continuing to consider the country at high risk for money laundering and terrorist financing. Despite these concerns, the UAE centred its efforts on preventing financial crime and money laundering and developing non-oil sectors of the economy, including technology, tourism, and trade and logistics. Through this, the region intended to diversify its funding and rely less on controversial forms of investment. Moreover, other initiatives taken by the UAE focus on improving financial cooperation, increasing financial investigation and prosecution, and aligning virtual asset regulation with international standards.

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