UAE Strengthens Legal Framework Against Money Laundering And Terrorism Financing

The United Arab Emirates Government has introduced a Federal Decree-Law to amend certain provisions of the existing Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations law. This move aims to enhance the legal framework supporting the nation's efforts against financial crimes.

In line with these amendments, the decree establishes the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations. This committee will be formed through a Cabinet decision. The decree also mandates the creation of a Supreme Committee for Oversight of the National Strategy for Anti-Money Laundering and Counter-Terrorism Financing, which will also be established by a Cabinet decision.

The decree aligns with the UAE's national strategy to protect its financial ecosystem by implementing advanced standards to counter crimes that negatively impact economies. It aims to consolidate technical compliance with international recommendations and treaties on this matter.

The Supreme Committee, as outlined in the decree, will study, oversee, and assess the effectiveness of strategies and measures implemented by the National Committee. It will define necessary measures and requirements for relevant entities, issue decisions accordingly, and ensure their implementation is followed up.

The new decree emphasises coordination between the National Committee and relevant entities. It urges these entities to support the National Committee in fulfilling its duties effectively. This coordination is crucial for overseeing the development of the Mutual Evaluation Report, which assesses compliance with international standards on Anti-Money Laundering and Combating the Financing of Terrorism.

Additionally, a General Secretariat for the National Committee will be established under this decree. The Secretary-General will head this secretariat, serve as Vice-Chairperson of the National Committee, and be a member of the Supreme Committee.

This legislative update is part of ongoing efforts to advance the UAE's legislative and legal system. By enhancing these frameworks, it aims to bolster efforts against financial crimes while ensuring alignment with global standards.

With inputs from WAM