UAE issues new decree to strengthen AML and CFT rules

The United Arab Emirates has issued a new federal decree amending certain provisions of the existing anti-money laundering (AML) and combating the financing of terrorism and illicit organizations (CFT) laws.

This action is part of the UAE’s ongoing efforts to strengthen and develop its legal and regulatory framework to combat financial crimes.

The changes introduced are aimed at strengthening the legal structures supporting the country’s authorities in the fight against financial crime, while ensuring that the UAE complies with international recommendations and treaties.

The regulatory update is part of the UAE’s broader national strategy to protect the local financial ecosystem by implementing advanced measures to counter the economic risks posed by illicit financial activity.

Provisions of the new AML/CTF decree

Key provisions of the decree include the establishment of two new supervisory bodies: the National Committee for Combating Money Laundering and Terrorist Financing and Illegal Organizations and the Supreme Committee for Supervision of the National Strategy for Combating Money Laundering and Terrorist Financing.

The decisions issued by the UAE Cabinet will form the basis for the functioning of both committees.

According to the decree, the Supreme Committee will be tasked with monitoring and assessing the effectiveness of the strategies implemented by the National Committee.

This includes defining the necessary compliance measures and requirements and issuing appropriate decisions to ensure the effective implementation of initiatives aimed at countering money laundering and terrorist financing.

In addition, the decree orders better coordination of the activities of the National Committee and relevant entities, which is to ensure comprehensive support and efficient performance of its duties.

This will also include overseeing the development of the Mutual Evaluation Report, which will assess the UAE’s compliance with global anti-money laundering and countering terrorism financing standards.

In addition to these changes, the decree establishes the General Secretariat of the National Committee, headed by the Secretary General.

The Secretary General will also be Vice-Chairman of the National Committee and a member of the Supreme Committee.

These changes underline the UAE’s commitment to strengthening financial crime prevention measures, as well as its commitment to upholding international standards and protecting its economy from the risks of money laundering and terrorism financing.

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