UAE Sets Forth National Strategy For Anti-Money Laundering And Terrorism Financing For 2024-27

The UAE Cabinet has approved the new 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation Financing (AML/CFT/CPF). This strategy aims to prevent illegal activities from impacting society through legislative and regulatory reforms. The General Secretariat of the National Committee developed this strategy in collaboration with key stakeholders, referencing the latest National Risk Assessment using the World Bank Group’s methodology.

H.H. Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Higher Committee Overseeing the National Strategy on AML and CFT, expressed gratitude to the National Committee and its General Secretariat for their efforts. He stated, "I would like to express my appreciation to the National Committee and its General Secretariat for their exceptional efforts in preparing and delivering the UAE’s new strategy for anti-money laundering, combating the financing of terrorism (AML/CFT) and the financing of illicit organisations."

The strategy focuses on risk-based compliance, effectiveness, and sustainability. It aims to enhance national and international coordination to improve information exchange and partnerships. Effective supervision of AML, CFT, and CFP obligations within the private sector is also a priority. Strengthening detection, investigation, and disruption of illicit financial activities is another key focus.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE and Chairman of the National Committee for Combating Money Laundering and Financing of Terrorism and Illegal Organisations, praised leadership support. He said, "I extend my sincere gratitude to our wise leadership for their unwavering support and guidance. I also commend the effective role of the Higher Committee for Supervising the National Strategy."

The General Secretariat will oversee implementing this new strategy to ensure alignment with UAE’s objectives. Regular progress reports will be submitted to the Higher Committee for Supervising the National Strategy to Combat Money Laundering and Terrorism Financing. This ensures adherence to international standards.

Hamid Al Zaabi, Secretary-General of the General Secretariat, Vice Chair of the National Committee, highlighted public-private sector collaboration. He remarked, "I extend my gratitude and thanks to His Highness Sheikh Abdullah bin Zayed Al Nahyan... as well as to the Chairman and members of the National Committee... I would also like to thank our public and private sector partners for their invaluable participation."

Strategic Goals

The strategy outlines 11 strategic goals focusing on legislative reforms. It includes optimising human resources, improving data collection and analysis, updating legal frameworks to adapt to evolving risks, supporting transparency, and ensuring rule of law adherence.

Sheikh Abdullah emphasised that this proactive approach safeguards global financial system integrity while strengthening UAE's position as a leading financial centre. He added that continuous enhancement of AML/CFT frameworks ensures a safe financial system.

The strategy addresses complex crimes such as trade-based money laundering and third-party laundering. It incorporates findings from recent risk assessments which will be disclosed soon. The approach includes improving understanding across sectors and enhancing international cooperation.

Additionally, it focuses on optimising financial data use for investigations and asset recovery. Maintaining robust frameworks against terrorism financing is crucial. Legal frameworks are updated regularly to align with global standards.

The UAE remains committed to staying ahead of emerging threats through continuous enhancement efforts. This commitment was evidenced by a Federal Decree issued in August aligning with national strategies aimed at protecting local financial ecosystems.

This comprehensive approach underscores UAE's dedication to global leadership in combating money laundering and financing terrorism. The strategy integrates best practices globally while addressing modern technological threats.

By focusing on these areas, UAE aims to protect its citizens from illegal practices while maintaining its status as an international trade hub. The collaborative efforts between public-private sectors play a vital role in achieving these objectives effectively.

The new national strategy reflects UAE's commitment towards safeguarding its financial system both locally and globally through continuous improvements based on risk assessments aligned with international standards.

With inputs from WAM