UAE approves new AML, CFT national strategy for 2024-27

The UAE Cabinet has approved a new National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation Financing (AML, CFT and CPF) for 2024-27, following ratification by the Higher Committee overseeing the national strategy.

This strategic development aims to bolster the UAE’s financial system against illegal activities.

The strategy, formulated around 11 strategic goals, introduces a comprehensive framework of legislative and regulatory reforms designed to combat money laundering and terrorism financing.

It aligns with the latest National Risk Assessment, developed using the World Bank Group’s methodology, and incorporates feedback from private sector stakeholders during the final consultation stage.

UAE to uphold international standards in dealing with financial crime

Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Higher Committee overseeing the National Strategy, praised the National Committee and its General Secretariat for crafting the new strategy.

He highlighted that this initiative follows the UAE’s removal from the Financial Action Task Force (FATF) Grey List in February, emphasising the country’s dedication to upholding international standards.

“The UAE’s proactive approach not only safeguards the integrity of the global financial system but also strengthens our position as a leading international financial centre and trade hub.”

He added that the UAE is committed to staying ahead of emerging threats by continuously enhancing our AML/CFT framework, ensuring our financial system remains safe, resilient, and efficient.”

Sheikh Abdullah noted recent legislative advancements, including an August Federal Decree, which aligns with the national strategy to counter economic crimes and bolster the local financial ecosystem.

Khaled Mohamed Balama, governor of the Central Bank of the UAE and chairman of the National Committee for Combating Money Laundering and Financing of Terrorism and Illegal Organisations, expressed gratitude to the leadership and stakeholders involved. He affirmed the strategy’s focus on a risk-based approach and its alignment with international standards, aiming to protect both the UAE’s financial system and the global financial landscape.

Hamid Al Zaabi, secretary-general of the General Secretariat and vice-chair of the National Committee, emphasised the strategy’s alignment with global best practices and its comprehensive approach to addressing complex financial crimes. He highlighted the strategy’s focus on emerging risks, including trade-based money laundering and cybercrime.

“The strategy addresses complex crimes and emerging risks, including trade-based money laundering, third-party laundering, intricate legal structures, and modern technological threats. It also integrates findings and recommendations from the recently completed National Risk Assessment, which will be disclosed in the near future,” he said.

Key highlights of the AML, CFT and CPF national strategy

The new strategy is centred on enhancing risk-based compliance, improving effectiveness and sustainability, and optimising national and international coordination. Key components include:

• Enhancing coordination between national and international entities to better share information and strengthen partnerships.
• Ensuring effective supervision of AML, CFT, and CFP obligations within the private sector.
• Improving mechanisms for detecting, investigating, and disrupting illicit financial activities.
• Investing in human and technical resources, enhancing data collection and analysis, and updating the legal and regulatory framework.
• Focusing on virtual assets, cybercrime, and other evolving threats.

The General Secretariat of the National Committee will oversee the strategy’s implementation, ensuring it meets UAE objectives and adheres to international standards.

Regular progress reports will be submitted to the Higher Committee to ensure ongoing alignment and effectiveness.

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