UAE Introduces New AML Committees Amid Sweeping Legislative Reforms

The United Arab Emirates (UAE) has announced the establishment of two new anti-money laundering (AML) committees as part of significant legislative changes aimed at intensifying the fight against money laundering. The UAE government has issued a Federal Decree that amends critical provisions of the country’s AML laws, signaling a robust approach to combating financial crime.

The decree will lead to the creation of two new AML bodies: the ‘National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations’ and the ‘Supreme Committee for the Oversight of the National Strategy for Anti-Money Laundering and Counter-Terrorism Financing’. According to the state news agency Wam, the National Committee will be responsible for developing and implementing AML strategies, while the Supreme Committee will assess the effectiveness of these measures in practice.

Additionally, the Federal Decree grants expanded powers to other UAE regulatory bodies that are tasked with combating money laundering. These changes are designed to strengthen the country’s AML framework and ensure that it remains in line with international standards. As part of these reforms, the UAE will also introduce a new process to evaluate its compliance with global AML standards and follow up on any areas requiring improvement.

These measures are part of the UAE's broader initiative to address financial crime. The nation has previously been perceived as a hub for illicit finance, a reputation that was underscored when the Financial Action Task Force (FATF) placed the UAE on its ‘grey list’ in 2022. This designation is typically reserved for jurisdictions with significant deficiencies in their AML frameworks. However, earlier this year, the UAE was removed from the FATF grey list, with the organization acknowledging improvements in the country’s approach to AML.

Beyond enhancing technical compliance with AML standards, the UAE has recently introduced several practical initiatives to combat financial crime. Earlier this month, the UAE Central Bank imposed a fine of Dh5.8 million ($1.6 million) on a bank operating within the Emirates for violations of the country’s AML regulations. Furthermore, just last week, the UAE temporarily halted production at 32 gold mines following inspections that revealed hundreds of breaches of AML rules.

These developments underscore the UAE's commitment to strengthening its financial regulatory framework and addressing the challenges of money laundering and financial crime.

By fLEXI tEAM