In 2023, the Central Bank of the United Arab Emirates (CBUAE) conducted 181 field inspections of financial institutions that held licenses. To make sure that all entities abide by the laws about anti-money laundering, combating the financing of terrorism, and preventing the funding of unlawful organisations, it intends to further increase the scope of its inspections in the future.
The regulator fined banks, exchange houses, insurance companies, and “hawaladars” Dh113.675 million in 2023 for not adhering to the rules aimed at stopping money laundering.
In addition, approximately 35,000 people attended 40 awareness events for the private sector to reduce risks and share information.
The nation was able to remove itself from the Financial Action Task Force’s (FATF) “grey list” because of the Central Bank’s and other public and private sector partners’ tireless efforts.
The announcement by the FATF that the UAE has complied with all necessary guidelines and recommendations is indicative of the country’s unwavering determination to fight money laundering.
Khaled Mohamed Balama, governor of the CBUAE and chairman of the NAMLCFTC, stated, “It highlights the efforts made by various committees, entities, and national bodies to combat financial crimes, including the Central Bank and the National Committee for Combating Money Laundering, Terrorism Financing, and Financing of Illegal Organisations.”
The removal of the UAE off the grey list, according to Mohamed Daoud, Industry Practice Lead at Moody’s Analytics, will increase confidence in the country’s financial system and result in easier foreign exchange transactions, cheaper interbank fees, and more trade and investment.
The governor of the Central Bank emphasised that the regulator’s goal was to protect the integrity and security of the financial system both domestically and internationally.
According to the Central Bank, the Financial Intelligence Unit used the Integrated Enquiry Management System to process more than 8,300 enquiries from law enforcement and public prosecution in 2022–2023.
It forwarded 710 technical reports to the public prosecution, primarily containing requests for information from counterpart global financial intelligence units, demands for searches and freezes, and other requests to support ongoing money laundering investigations.
The Financial Intelligence Unit and its corresponding global entities have inked 68 memorandum of understanding (MoU) and agreements.