Top representatives from UAE banks met last week to discuss ways they could better comply with international standards – mainly those set by global watchdog Financial Action Task Force (FATF).
The workshop, organised by the UAE Banks Federation (UBF), focused on improving local banks’ regulatory compliance, following the country’s addition to the FATF’s ‘grey list’ earlier this year.
Countries in the grey list are put under increased monitoring for higher risks of money laundering and terrorist financing.
Since the listing, the UAE has committed to further strengthen its rules and regulations against financial crimes – with the central bank sanctioning several firms who had weak compliance structures.
The workshop “reflects the UBF’s commitment to continue its efforts to improve the framework and procedures required to develop and maintain compliance processes in line with the Central Bank of the UAE’s guidelines,” its chairman Abdulaziz Al Ghurair said in a statement.
“This will improve the effectiveness of the country’s banking and financial system in managing risk, enhancing transparency and governance, and combating fraud and financial crime,” he added.
The workshop, attended by major banks including Dubai’s biggest lender Emirates NBD, as well as First Abu Dhabi Bank, Mashreq Bank, and Standard Chartered Bank, is crucial as the banking sector witnesses “rapid developments.”
In 2021, the UAE’s gross domestic product (GDP) stood at $402.9 billion, with foreign direct investments inflows reaching $20.7 billion.
The figures represent the UAE’s ambitious goal to become a global trade and investment hub – and the financial sector will play a critical role in enabling this vision.
Aside from discussing specific FATF guidelines, participants of the two-day event also talked about dealing with “emerging financial challenges,” as digital assets and currencies continue to grow in prominence in the region and beyond.
“Given the increasing risks faced by the banking and financial sector in the digital age, efforts to update legislation and continuously enact new laws are being accelerated to ensure safe banking for customers,” Jamal Saleh, the director general of the official UAE banks grouping, said.
He said UBF and its member banks, as well as the Central Bank of the UAE, are working together to keep abreast of latest laws and regulations, and to encourage investment in digital infrastructure.
Follow us on
