UAE National Strategy for Anti-Money Laundering

The UAE’s National Strategy to Combat Money Laundering and Terror Financing

The UAE’s latest National Strategy against Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT) and Countering Proliferation Financing (CPF) for 2024-27 was announced following approval from the UAE Cabinet on 2^nd September 2024, drawing from the most recent National Risk Assessment after employing the methodology of the World Bank Group.

The plan, that focuses on 11 strategic objectives, outlines the legal and regulatory adjustments being made by the UAE to counteract the impact of illicit activities on society. It was developed following the latest National Risk Assessment, aligning with the highest international standards as per the World Bank Group’s methodology. It should be noted that the involvement of private sector stakeholders was vital during the last phase of consultations.

The national strategy primarily focuses on key aspects of risk-based compliance, efficiency and continuity. This includes:

1. Enhancing cooperation nationally and internationally for better information exchange;
2. Improving detection, inquiry and prevention of illicit financial activities;
3. Regularly updating legal frameworks to adapt to evolving risks;
4. Ensuring private sector adherence to AML, CFT and CFP obligations through monitoring;
5. Maintaining transparency and legal standards;
6. Enhancing human and technological resources;
7. Optimizing data gathering and analysis;
8. Tackling the risks associated with virtual assets and rapidly advancing cybercrimes.

The strategy was approved by the Cabinet subsequent to its endorsement by the Higher Committee Overseeing National Strategy on Anti-Money Laundering and Combating the Financing of Terrorism.

UAE National Strategy for Anti-Money Laundering – Method of Execution

The method of execution includes the following actions:

1. Establishing robust frameworks to combat terrorism financing and illicit funding;
2. Optimizing the use of financial data for effective investigations and asset recovery;
3. Aligning legal and regulatory structures with international standards;
4. Enhancing the understanding of risks across various sectors;
5. Fostering global collaboration and strategic partnerships;
6. Improving oversight of financial institutions and designated non-financial businesses;
7. Enhancing transparency of beneficial ownership information;
8. Encouraging collaboration between public and private sectors;
9. Implementing centralized monitoring systems;
10. Offering adequate resources and training for diverse organizations.

The General Secretariat of the National Committee will oversee the implementation of the new strategy to ensure alignment with the UAE’s objectives as well as international guidelines. Regular updates will be provided to the Higher Committee responsible for the National Strategy to Combat Money Laundering and Terrorism Financing.

Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Higher Committee overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, praised the National Committee and its General Secretariat for their exceptional efforts in formulating and executing the UAE’s updated AML/CFT strategy against funding illicit groups. This recognition follows the Financial Action Task Force (FATF) removing the UAE from its Grey List in February 2024, underscoring the UAE’s strong commitment to upholding global standards.

Sheikh Abdullah bin Zayed Al Nahyan emphasized that the UAE’s proactive stance safeguards the integrity of the worldwide financial system while bolstering its status as a premier international financial center and trading hub. The United Arab Emirates remains steadfast in its commitment to leading the way.

For any further inquiries, please feel free to reach out to us.