The UAE has made positive strides in its efforts related to anti-money laundering (AML), countering the financing of terrorism (CFT), and counter proliferation financing (CPF), according to the Financial Action Task Force (FATF), which is a global anti-money laundering and terrorist financing watchdog.
The Paris-based Financial Action Task Force, also known as Groupe d’Action Financière, is an intergovernmental organisation founded by a G7 initiative to develop policies to combat money laundering.
In order to ensure the success and sustainability of the UAE’s efforts to strengthen its anti-financial crime framework, FATF has placed the UAE under increased monitoring. Bloomberg reported that the UAE has been placed on the organisation’s “gray list”.
“Whilst being added to the gray list will be viewed by many as a major blow for the UAE, since the FATF’s warning in 2020, the UAE government has taken numerous affirmative steps to better align with global standards on anti-money laundering and counter terrorist financing,” the Dubai-based head of advisory in financial crime at law firm Al Tamimi & Co, Ibtissem Lassoued, told Bloomberg.
UAE commits to improvements in combating financial crime
The UAE has now committed to address areas of improvement through the implementation of an action plan while working closely with FATF.
The UAE has “significantly strengthened” its anti-financial crime framework. The government has set up courts focused on financial crimes, established an entity that ensures better collaboration between the central bank and other authorities, and has announced a 9% corporate tax starting in 2023.
Commenting on the country’s ongoing efforts to fight financial crime, the UAE’s Executive Office of Anti-Money Laundering and Countering the Financing of Terrorism said: “The UAE takes its role in protecting the integrity of the global financial system extremely seriously and will work closely with the FATF to quickly remedy the areas of improvement identified.
“On this basis, the UAE will continue its ongoing efforts to identify, disrupt and punish criminals and illicit financial networks in line with FATF’s findings and the UAE’s National Action Plan, as well as through close coordination with our international partners.”
The UAE’s commitment to advancing efforts to combat money laundering and counter terrorist financing remains a key pillar underpinning the country’s status as an attractive global business hub that operates in line with international standards.
Moreover, robust actions and ongoing measures taken by the UAE Government and private sector are in place to secure the stability and integrity of the country’s financial system, the state-run news agency, Wam, reported.
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