UAE Sets Global Benchmark In Combating Financial Crimes: Insights From Hamid Al Zaabi

In a significant development for the United Arab Emirates' efforts against financial crimes, Hamid Al Zaabi, Director-General of the Executive Office for Anti-Money Laundering and Counter Terrorism Financing (AML/CFT), highlighted the nation's pivotal role on the global stage. Al Zaabi, in his conversation with the Emirates News Agency (WAM), revealed that the UAE is set to commence the next Mutual Evaluation Report (MER) by the Financial Action Task Force (FATF) in 2026. This follows the FATF's acknowledgment of the UAE's successful implementation of all 15 recommendations from its Action Plan.

Al Zaabi attributed this achievement to the relentless work of various federal, local, and private sector entities in alignment with both national strategy and action plans. He underscored the establishment of an advanced monitoring and reporting system, powered by digital tools and engaging over 90 national entities. The Federal Competitiveness and Statistics Centre, a part of the Executive Office, manages this data to ensure ongoing compliance with both national goals and international standards.

The Director-General also shed light on the UAE's efforts to bolster international cooperation. He mentioned an increase in Mutual Legal Assistance Treaties (MLATs), with 45 treaties already signed and more anticipated within the year. From January to October 2023, the UAE issued 200 outgoing MLAT requests to support investigations into terrorist financing, money laundering, and predicate crimes.

Al Zaabi noted a significant uptick in suspicious transaction/activity reports (STRs) across all sectors for the first ten months of 2023 compared to 2022. The Designated Non-Financial Businesses and Professions (DNFBP) sector saw a 266 percent increase in STRs, while real estate STRs rose by 106 percent. Corporate Service Providers and Trust Funds sector reported a 49 percent increase in STRs, culminating in a 90 percent rise in total STRs submitted by all DNFBPs.

Enhanced Law Enforcement Measures

In terms of law enforcement actions related to AML/CFT between January and October, there was a threefold increase in fines imposed by regulatory authorities, reaching AED 249.2 million compared to AED 76 million in 2022. Additionally, targeted financial sanctions saw over AED 10 million in fines collected between July and October 2023, marking a 448 percent increase from the previous year.

Global Engagement and Future Plans

Al Zaabi highlighted the Executive Office's role in leading official delegations to various countries for bilateral meetings last year. The UAE also participated in annual meetings of regional bodies such as FATF, Asia Pacific Group (APG), and Eurasian Group (EAG). Notably, Abu Dhabi will host the APG Annual Meeting in September next year, marking its first occurrence in the region.

The Director-General emphasized the importance of Memoranda of Understanding (MoUs) for exchanging best practices. The Executive Office has signed MoUs with counterparts in Egypt, Morocco, and Kazakhstan to enhance bilateral cooperation. Furthermore, Al Zaabi announced that the UAE's next National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism for 2024-2027 will be launched soon. Additionally, results and recommendations from the latest National Risk Assessment (NRA), supported by the World Bank Group and initiated last year, are expected to be announced later this year.

With inputs from WAM