
A Guide to Anti-Money Laundering (AML) Regulations in the UAE

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As the Middle East’s financial hub, the UAE offers several enticing free trade zones that attract major enterprises and contribute significantly to the nation’s economic expansion. However, criminals use the country’s current landscape to commit crimes such as money laundering, posing a significant risk to the stability and security of the financial system. This highlights the importance of implementing Anti-Money Laundering (AML) regulations to combat this fraud in the country.
The Central Bank of the UAE (CBUAE) established a dedicated department in August 2020 responsible for overseeing all matters related to money laundering and terrorist financing. Before this, these tasks were handled by the Banking Supervision Department. The newly established Anti-Money Laundering and Combating the Financing of Terrorism Supervision Department (AMLD) have the following primary objectives:
The AMLD collaborates closely with the UAE’s National AML and Countering Terrorism Financing (CTF) Committee and the Banking Supervision Department Examination Division to fulfil its responsibilities effectively. Furthermore, the AMLD acts as a mediator between the domestic stakeholders and CBUAE.
Apart from the AMLD, other authorities involved in AML and CTF activities include:
Under the AML-CTF Law, an individual acts unlawfully when they knowingly:
Failure to report suspicious activities could lead to imprisonment and fines ranging from AED 100,000 to AED 1,000,000. Violations of other AML and CTF requirements may result in companies facing imprisonment or fines between AED 10,000 and AED 100,000. Designated Non-Financial Businesses and Professions (DNFBPs) may be subject to penalties ranging from AED 50,000 to AED 200,000.
The UAE was on the Financial Action Task Force’s (FATF) grey list in March 2022. As a response, the country has announced the establishment of bodies to combat economic crimes. This initiative aims to build confidence among global investors and attract them to establish their businesses in the Gulf country, solidifying its position as a preferred business hub.
The decision was made during the 18th meeting of the Supreme Committee chaired by the country’s Minister of Foreign Affairs, Abdullah bin Zayed Al-Nahyan. The Director General at the Executive Office of AML and CTF, Hamid Al-Zaabi, presented the FATF action plan, the efforts undertaken by each regulatory authority, and the progress achieved.
The presentation highlighted a surge in penalties imposed by regulatory bodies, totaling more than 130 million dirhams by Q2 of 2023, reflecting the steps taken against violators. Furthermore, the number of suspicious transaction reports submitted to the Financial Information Unit (FIU) had significantly risen compared to figures from 2022. This indicates a growing understanding and awareness among the private sector due to the continuous efforts of all relevant authorities in the country.
Regarding money laundering investigations, the presentation reported an enhancement in the quality and quantity of cases handled. The meeting also included a review of the latest developments in the national plan and an overview of the outcomes of the FATF plenary session held in Paris in June 2023.
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