UAE major AML Crackdown

04 November 2024

Josleen Deeb

In 2023, the UAE confiscated assets worth more than AED 2.348 billion and imposed fines exceeding AED254 million in a bid to crack down on money laundering.

Last year, the Central Bank of the UAE carried out over 119 field inspections, leading to fines totaling nearly AED113 million, while the Ministry of Economy conducted 3371 field inspections, resulting in fines amounting to AED 101 million in 2023, as per the National Committee for Anti-Money Laundering and Countering the Financing of Terrorism and Financing of Illegal Organizations.

It is emphasized that the significant advancements made by the UAE in combating financial crimes, had their actions focused on safeguarding the integrity and sustainability of the country's financial and economic system, as well as protecting the global financial system.

The number of suspicious activity reports related to the gold sector surged from 223 in 2021 to 6432 in 2023, indicating increased awareness and vigilance.   Inspections in the gold sector rose by approximately twentyfold, resulting in strict enforcement measures, including fines totaling Dh78.65 million.

In August, the Ministry of Economy suspended 32 local gold refineries for non-compliance with anti-money laundering laws.   These refineries were found guilty of 256 violations, and the suspensions occurred between July and October 2024.

The UAE has ratified 45 mutual legal assistance treaties in alignment with the initiatives undertaken by the Ministry of Justice, with plans underway to sign new treaties in 2024 and 2025.

During the 2024 Asia Pacific Group on Money Laundering (APG) Annual Meeting and Technical Assistance and Training Forum held in Abu Dhabi, recent revisions to anti-money laundering and counter-terrorism financing laws were highlighted strengthening the national sustainability system and enhancing its efficiency in addressing emerging threats, while reinforcing the UAE's position as a leading international financial and commercial Centre

The UAE, which has been removed from the "grey list" of money-laundering havens, has implemented changes to enhance investor confidence. These modifications are part of the government's National Strategy for Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Proliferation Financing for the years 2024-2027. The plan for 2024-2027 includes the creation of new committees and a crackdown on violations in the gold sector to increase transparency.

The new laws establish two key committees:

1.      The National Committee for Anti-Money Laundering and Combating the Financing of Terrorism,

2.      The Supreme Committee for overseeing the national AML strategy.  

These committees are focused on improving compliance and enforcement processes related to AML and CFT, with the goal of reducing red tape and enhancing communication between businesses and regulatory authorities.