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The Central Bank of the United Arab Emirates (CBUAE) has affirmed that the Financial Action Task Force's (FATF) announcement – regarding the UAE's completion of all requirements of the action plan agreed upon with the FATF – embodies the national efforts to combat money laundering and terrorist financing, and the close cooperation with international partners and global institutions, with the aim of protecting the integrity of the financial system in the UAE and the world.
The UAE relies on a clear strategy to combat money laundering, terrorist financing, and the financing of illegal organisations, through cooperation and coordination between national entities, such as law enforcement agencies and regulatory bodies, in addition to the constructive partnership between the public and private sectors. All effective measures and procedures are taken to enhance compliance and develop awareness among financial institutions and businesses and non-financial professions specified in combating financial crimes and mitigating their risks.
The UAE 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 most important pillars of the national system for combating money laundering and terrorist financing. It includes more than 32 entities in the country representing law enforcement agencies, regulatory bodies, the Financial Intelligence Unit, and the judiciary.
NAMLCFTC has enhanced local efforts and implemented national action plans in line with international requirements and recommendations in this regard by establishing 8 specialised subcommittees that work according to the best international practices, adopting guidelines and policies and disseminating them to the relevant entities, in addition to adopting the regulatory framework for exchanging information between the public and private sectors, and enhancing coordination and close cooperation with international entities.
Through its projects and initiatives, the NAMLCFTC has worked to protect the UAE's financial infrastructure from the risks of financial crimes, in addition to investing in technology and artificial intelligence, to facilitate the reporting of suspicious transactions, speed up their analysis, and submit the necessary reports on transactions, including the (goAML) and (FAWRI TICK) platforms.
The CBUAE's commitment to combating money laundering, terrorist financing, and the financing of illegal organisations comes within the framework of its vital role in the national system. This is achieved by continuing to strengthen the regulatory, supervisory, and organisational framework in line with international standards. The focus is on issuing the necessary regulations and guidelines for compliance and guidance, governance of licenced financial institutions, risk management, conducting field inspections, and applying effective administrative and financial penalties. In addition, the Central Bank is also committed to building national capacity and strengthening the understanding of licensed financial institutions of risks and compliance, which enhances the UAE's position as a global financial centre.
In 2023, the Central Bank conducted 181 field inspections of licenced financial institutions. There is a plan to expand this in the future. In addition, fines of AED 113,675 million were imposed on banks, exchange houses, insurance companies, and money transfer intermediaries for non-compliance with regulatory requirements related to anti-money laundering and counter-terrorist financing in 2023. The Central Bank also organised 40 awareness sessions for the private sector with the participation of more than 35,000 participants to exchange information and reduce risks.
The Financial Intelligence Unit (FIU) plays a pivotal role in representing the UAE in international forums in the context of verifying suspicious transactions and activities. The FIU has achieved many accomplishments that have contributed to protecting the UAE and global economy from money laundering, terrorist financing, and various financial crimes. The FIU successfully executed more than 8,300 requests from law enforcement and prosecution authorities through the Integrated Inquiry Management System during 2022-2023. Additionally, 710 technical reports were sent to the Public Prosecution, most of which included requests for search, freezing, and obtaining information from similar financial intelligence units around the world, in addition to other requests to support ongoing money laundering investigations. The Integrated Inquiry Management System has helped in the exchange and use of information between the UAE's FIU, investigative authorities, and reporting entities. The number of Memoranda of Understanding (MoUs) and agreements signed between the FIU and its global counterparts reached 68.
The FIU has focused on investing in national talent and artificial intelligence technologies to accelerate communication and information exchange.
Khaled Mohamed Balama, Governor of the CBUAE and Chairman of the NAMLCFTC , said, "The Financial Action Task Force's (FATF) announcement that the UAE has met the required standards and recommendations reflects the UAE's unwavering commitment to combating money laundering and terrorist financing. It also highlights the efforts made by various national committees, entities, and authorities, including the Central Bank and the National Anti Money Laundering and Combatting Financing of Terrorism and Financing of Illegal Organisations Committee, to combat financial crimes. We affirm our commitment to continuing our supervisory and regulatory efforts in this regard and strengthening our cooperation with the FATF in line with the UAE's well-established approach to combating financial crime and illicit financial flows. This is aimed at ensuring the integrity and safety of the financial system in the UAE and the world."