UAE issues new decree-law to bolster AML, CFT regulations

The UAE has issued a new federal decree-law amending some provisions of its existing anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) Law.

This move is part of the UAE’s ongoing efforts to enhance and advance its legal and regulatory framework in the fight against financial crimes.

The newly introduced amendments are designed to strengthen the legal structures supporting the nation’s authorities in combating financial crimes, ensuring the UAE’s adherence to international recommendations and treaties.

This legislative update aligns with the UAE’s broader national strategy, which aims to safeguard the local financial ecosystem by implementing advanced measures to counteract economic threats from illicit financial activities.

Provisions of the new AML/ CTF decree

Key provisions of the decree include the establishment of two new oversight bodies: the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, and the Supreme Committee for the Oversight of the National Strategy for Anti-Money Laundering and Counter-Terrorism Financing.

Decisions issued by the UAE Cabinet will form both committees.

The Supreme Committee, as outlined in the decree, will be tasked with monitoring and evaluating the effectiveness of strategies implemented by the National Committee.

This includes defining the necessary measures and requirements for compliance and issuing relevant decisions to ensure the successful execution of anti-money laundering and counter-terrorism financing initiatives.

Furthermore, the decree mandates enhanced coordination between the National Committee and relevant entities, ensuring comprehensive support and smooth operation in fulfilling its duties.

This will also include overseeing the development of the Mutual Evaluation Report, which assesses the UAE’s compliance with global anti-money laundering and counter-terrorism financing standards.

In addition to these changes, the decree establishes a general secretariat for the National Committee, which will be headed by a secretary-general.

The secretary-general will also serve as the vice-chairperson of the National Committee and as a member of the Supreme Committee.

The amendments underscore the UAE’s commitment to fortifying its financial crime prevention measures, as it continues to enhance its compliance with international norms and protect its economy from the risks associated with money laundering and terrorism financing.

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