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Hamed Al Zaabi, Secretary-General of the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organizations, confirmed the UAE’s success in achieving major accomplishments and strategic initiatives in combating financial crimes to preserve the integrity and sustainability of the national financial and economic system, and protect the integrity of the global financial system, which confirms its firm commitment to combating financial crimes worldwide and enhancing international cooperation.
He added, on the sidelines of the annual meeting and technical assistance and training forum of the Asia-Pacific Group against Money Laundering, which is being held in the capital, Abu Dhabi, for the first time in the region, that the recent amendments to the laws of combating money laundering and terrorist financing have strengthened the national sustainability system and increased the efficiency of the system to address emerging threats, noting that these achievements enhance the country’s position as a leading international financial and commercial center, with the country’s commitment to continue to anticipate emerging threats through continuous improvement of the framework for combating money laundering and terrorist financing, and ensuring that our financial system remains safe, flexible and effective.
He explained that the state imposed fines exceeding AED 254 million related to money laundering, in addition to seizing assets worth more than AED 2.348 billion related to violations of anti-money laundering practices and procedures during the past year 2023, noting that the Central Bank of the UAE conducted more than 119 field inspections and imposed fines worth nearly AED 113 million last year, while the Ministry of Economy conducted 3,371 field inspections and imposed fines worth AED 101 million in 2023.
He explained that the implementation of the Cabinet’s decision on regulating virtual assets and virtual asset service providers at the federal level has led to strengthening the comprehensive risk-based regulatory framework and supporting innovation in the sector, noting the update of the risk assessment of virtual asset service providers to identify and assess the risks of money laundering and terrorist financing arising from providers of these services.
The Central Bank of the UAE, the Securities and Commodities Authority, and the Virtual Assets Regulatory Authority have been designated as entities responsible for supervising virtual asset service providers and beginning to identify natural and legal persons in cooperation with law enforcement agencies.
He pointed out that the regulators of virtual asset service providers in the UAE have issued regulations and guidelines that have created an operational framework for virtual assets. In June, the Central Bank issued a regulation that does not allow companies and sellers in the UAE to accept cryptocurrencies in exchange for goods and services unless these currencies are stable and backed by the dirham, a type of virtual payment token.
He stated that the number of suspicious activity reports related to the gold sector increased from 223 in 2021 to 6,432 in 2023, indicating an increase in the level of awareness and alertness. In addition, inspections increased by about twenty times, and clear enforcement measures were taken, including imposing fines of 78.65 million dirhams.
The Secretary-General of the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organizations pointed out that the Ministry of Economy suspended 32 local gold refineries last August for not following anti-money laundering laws and accused them of committing 256 violations, and the suspensions continued between July and October 2024.
He explained that the UAE has signed 45 mutual legal assistance treaties in line with the announced efforts made by the Ministry of Justice, while plans are underway to sign new mutual legal assistance treaties in 2024 and 2025.
He stressed that the regulatory authorities in the country will continue to hold ongoing awareness campaigns to raise awareness among financial institutions, virtual asset service providers, and designated non-financial businesses and professions, regarding their obligations in the field of combating money laundering and terrorist financing, and will continue to issue relevant guidelines and circulars regularly and update them if necessary, noting that the regulatory authorities in the UAE conducted 828 field visits in 2022, and 4,190 in 2023.
