The UAE introduces tighter anti-money laundering laws to fight financial crime

The UAE has introduced significant changes to its anti-money laundering (AML) laws, aiming to enhance its legal framework in the fight against financial crime.

The updated Federal Decree-Law which was announced recently, includes several new provisions that align the country with international standards, just six months after the UAE was removed from the Financial Action Task Force’s grey list.

Changes in the current law

The updated legislation introduces new committees and enhanced coordination efforts to improve oversight and reporting across financial sectors. Two major committees have been established: the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism, and the Supreme Committee for overseeing the national AML strategy. These committees will ensure that financial institutions and designated non-financial businesses work together effectively to combat illicit activities.

Additionally, a General Secretariat has been created to support the operations of the National Committee, with a Secretary-General overseeing collaboration and information sharing.

Meeting international standards

One of the key goals of the new law is to align UAE regulations with international recommendations, ensuring that the country's financial system remains robust and secure. By following global standards, the UAE strengthens its reputation as a reliable financial hub and plays a more active role in global efforts to combat financial crime.

How will this affect businesses?

Financial institutions and other businesses will need to adapt to these changes by updating their compliance programs and reporting practices. The creation of these new committees and stricter oversight may lead to increased reporting obligations, making it essential for companies to stay on top of the new requirements. Overall, the UAE’s move to tighten its AML laws reinforces its commitment to safeguarding its financial ecosystem from illegal activities and ensuring continued alignment with international best practices.

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