The UAE is making major progress in the ongoing fight against money-laundering and counter-terrorism financing as it seized assets worth more than AED2.348bn ($639m) last year for rule violations.
Hamid Al Zaabi, Secretary-General of the National Committee for Anti-Money Laundering and Countering the Financing of Terrorism and Financing of Illegal Organisations (NAMLCFTC), emphasised the UAE’s significant progress in combating financial crimes.
This commitment is aimed at preserving the integrity and sustainability of the nation’s financial and economic system, as well as protecting the global financial system.
UAE anti-money laundering fines
Speaking on the sidelines of the 2024 Asia Pacific Group on Money Laundering (APG) Annual Meeting and Technical Assistance and Training Forum, held in Abu Dhabi, Al Zaabi highlighted recent amendments to anti-money laundering and counter-terrorism financing laws.
These amendments have strengthened the national sustainability system and enhanced its efficiency in addressing emerging threats, reinforcing the UAE’s position as a leading international financial and commercial centre.
In 2023, the UAE imposed fines exceeding AED254m ($69m) related to money laundering and seized assets valued at more than AED2.348bn ($639m) for violations of anti-money laundering practices and procedures.
He stated that the Central Bank of the UAE conducted more than 115 field inspections, imposing fines of nearly AED113m ($31m) last year, while the Ministry of Economy conducted 3,371 field inspections, imposing fines amounting to AED101m ($27m) in 2023.
The number of suspicious activity reports related to the gold sector increased from 223 in 2021 to 6,432 in 2023, indicating heightened awareness and vigilance.
Inspections in the gold sector increased by about twentyfold, leading to clear enforcement measures, including the imposition of fines amounting to AED78.65m ($21m).
In August, the Ministry of Economy suspended 32 local gold refineries for their failure to comply with anti-money laundering laws.
These refineries were accused of committing 256 violations, and the suspensions between July and October 2024.
He explained that the UAE has signed 45 mutual legal assistance treaties in line with the efforts made by the Ministry of Justice, while plans are underway to sign new mutual legal assistance treaties in 2024 and 2025.
Earlier this week, the National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organisations Committee (NAMLCFTC), chaired by Khaled Mohamed Balama, Governor of the Central Bank, announced that, according to a UAE Cabinet resolution, the NAMLCFTC will replace the Executive Office of the Anti-Money Laundering and Countering the Financing of Terrorism (The Executive Office) in all rights and obligations.
The resolution also stipulates that all employees of the Executive Office shall be transferred to the NAMLCFTC, with Hamid Saif Al Zaabi to be appointed Secretary-General of the NAMLCFTC.
This decision comes in accordance with Federal Decree Law No. (7) of 2024 amending some provisions of Federal Decree Law No. (20) of 2018 regarding Combating Money Laundering Crimes and Combating the Financing of Terrorism and the Financing of Illegal Organisations.
The amendments included the establishment of a General Secretariat for the NAMLCFTC, headed by a Secretary-General, who will be Vice-Chairman and a member of the Supreme Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism.
Khaled Mohamed Balama, Governor of the Central Bank and Chairman of the NAMLCFTC, said: “The Cabinet’s decision embodies the directives of the wise leadership and reflects the UAE’s strong and steadfast commitment to protecting the integrity and soundness of the local and global financial system, and taking all necessary measures to combat financial crimes worldwide.
“The UAE’s efforts towards anti-money laundering and combating the financing of terrorism are based on an integrated approach that reflects the vision of the leadership and the directives of the Supreme Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, and on an effective national system and a strong legal and institutional framework.
“The decision contributes to enabling the UAE to further strengthen its national system, build a strong and sustainable national structure to combat money laundering and terrorist financing, consolidate local institutional capabilities and ensure their sustainability.
“It will also consolidate integration, communication and coordination at all local and federal levels, enhance international cooperation and partnerships with countries around the world, and develop strategies aimed at reducing risks to enhance the process of building a sustainable and prosperous economy that is capable of effectively managing and confronting the risks of money laundering, terrorist financing and financial crimes.
“This will definitely enhance the competitiveness of the UAE and its leading position as a global financial hub.”
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