New anti-money laundering strategies are announced for 2024-27

The UAE has commonly been known as the fastest-growing economy in the world, from regulations, legislations, real estate, lifestyle and overall attractive living space for crowds from all over the world.

This time around, tightening up more laws to ensure the financial safety and security of their residents, the UAE has announced some new anti-money laundering strategies.

Let us break everything down for you…

The national strategy for anti-money laundering

The UAE has launched its 2024-2027 National Strategy for Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Proliferation Financing (CPF), taking a key step in its fight against financial crime.

This strategy is part of the UAE's efforts to stay a leading global financial hub while addressing new risks like cyber threats, virtual assets, and complex financial crimes.

A comprehensive approach to tackling financial crime

The strategy was developed in collaboration between the public and private sectors and is centred around 11 key goals.

These goals aim to boost the country's legislative and regulatory framework to prevent illegal activities like money laundering and terrorism financing. The framework was created based on the latest National Risk Assessment and follows the World Bank Group’s plans to ensure it meets the highest international standards.

One of the strategy’s standout features is its focus on risk-based compliance, sustainability, and effectiveness. By enhancing both national and international coordination, the UAE is ensuring the smooth flow of information between agencies and improving collaboration between public and private sector stakeholders.

This coordination between the public and private sectors will help strengthen oversight of AML and CFT regulations across financial institutions, ensuring that illicit financial activities are detected, investigated, and disrupted in the UAE.

Addressing the different risks associated

A significant aspect of this new strategy is its emphasis on tackling modern threats, such as virtual assets and cybercrime.

With technology advancing at rapid speeds and cybercrime being one of the top reasons for financial crime in the world today, the UAE is committed to strengthening its understanding and mitigation of these threats by improving the transparency of beneficial ownership information and optimising the use of financial data. With this on hand, the UAE aims to enhance its capabilities in investigations and asset recovery.

The strategy also includes plans to regularly update legal and regulatory frameworks to keep up with these evolving risks. This proactive upkeep ensures that the UAE stays at the forefront of global standards, adapting its laws and systems as new challenges arise.

Strengthening the financial ecosystem of the UAE

Recently coming off the Financial Action Task Force’s (FATF) Grey List is a reflection of the government’s dedication to maintaining a safe and resilient financial system that aligns with international standards. The new strategy will not only safeguard the UAE’s financial integrity but also strengthen its position as a leading international trade hub and financial centre.

Looking ahead…

As the UAE continues to implement its 2024-2027 strategy, key members of the government such as the General Secretariat of the National Committee and the Central Bank of the UAE will oversee its progress. Regular reports will be submitted to the Higher Committee to ensure that the strategy remains aligned with the UAE’s long-term goals and international obligations.

By addressing both current risks and anticipating future challenges, the UAE is ensuring that its financial system remains safe, transparent, and robust in the face of global challenges.

Now, isn’t that impressive?

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