UAE Unveils National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing

Cabinet approval of the strategy follows ratification by the Higher Committee Overseeing National Strategy on AML and CFT. The strategy, which is formulated around 11 strategic goals, outlines the legislative and regulatory reforms the UAE is taking to prevent the impact of illegal activities on society.

The General Secretariat of the National Committee, in collaboration with key stakeholders, has developed the new national strategy for the state.

The strategy was formulated with reference to the latest National Risk Assessment, which has been developed using the World Bank Group’s methodology, to align with the highest international standards. Private sector members played a key role by participating in the final stage consultations.

The national strategy focuses on the key pillars of risk-based compliance, effectiveness and sustainability. These include enhancing national and international coordination to improve information exchange and partnerships, ensuring effective supervision of AML, CFT, and CFP obligations within the private sector, and strengthening the detection, investigation, and disruption of illicit financial activities. The strategy also emphasizes optimizing human and technical resources, improving data collection and analysis, and continuously updating the legal and regulatory framework to adapt to evolving risks and support transparency and the rule of law. The strategy includes a focus on the risks posed by virtual assets and rapidly advancing forms of cybercrime.

The strategic approach includes improving the understanding of risks across various sectors, enhancing international cooperation and strategic partnerships, strengthening oversight of financial institutions and designated non-financial businesses and professions, and improving transparency of beneficial ownership information. Additionally, it focuses on optimizing the use of financial data for effective investigations and asset recovery, maintaining robust frameworks to combat terrorism financing and the financing of illicit organizations, updating legal and regulatory frameworks to align with global standards, fostering coordination and collaboration between the public and private sectors, developing centralized data systems for monitoring, and ensuring adequate resources and training for various entities.

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