The United Arab Emirates presented a new Federal Decree-Law to amend provisions of the existing regulation on anti-money laundering and fighting the financing of terrorism. The move seeks to strengthen the country’s legal framework and align it with international norms in the ongoing battle against illicit financial activities and countering terrorism. This comes almost six months after the UAE was released from the Financial Action Task Force’s grey list.
“These modifications are in line with the UAE’s ongoing struggles to develop its legislative and legal system, aiming to additionally strengthen the country’s legal framework in approval of the authorities’ efforts to combat financial crimes,” stated Lily Eid, Money Laundering Reporting Officer at BSA Ahmad Bin Hezeem & Associates.
The new legislation raises several important changes to the UAE’s anti-money laundering and counter-terrorism financing framework. The National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations. The Supreme Committee for the Oversight of the National Strategy for AML and CFT. This newly designated body, formed by a Cabinet decision, will play a major role in the UAE’s strategy for combating financial crimes. It is accountable for developing and implementing comprehensive AML and CFT strategies, ensuring that all appropriate entities in the UAE align with both national and international standards,” stated Eid.
The Supreme Committee issues findings and guidelines based on its evaluations, Eid presented, ensuring that AML and CFT procedures are implemented effectively across all relevant entities. “It oversees the growth of the Mutual Evaluation Report, which assesses the UAE’s keeping with international standards and observes the implementation of necessary recommendations,” she added.
One of the immediate objectives of the new law is to enhance coordination between relevant entities in the UAE’s fight against financial offences. The creation of these committees is expected to greatly enhance collaboration among key players in the financial sector. “By setting clear mandates and delivering oversight, these committees will ensure that Financial Institutions (FIs), Designated Non-Financial Businesses and Professions (DNFBPs), and other critical players work together seamlessly,” Eid said.
They will also enhance information sharing, simplify reporting processes, and enable consistent implementation of anti-money laundering and counter-terrorism financing strategies across all sectors.” The law also specifies the creation of a General Secretariat to keep the operations of the National Committee. “The Secretary-General acts as a critical connector between the National Committee and the Supreme Committee, providing that the Supreme Committee’s decisions and directives are implemented,” she said.
