United Arab Emirates Unveils National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing for 2024-27

* Strategy built around 11 strategic goals, each supported by specific legislative actions and regulatory reforms
* Focus on key pillars of risk-based compliance, effectiveness and sustainability of national framework

Following approval by the UAE Cabinet on 2 September, the country has announced its new 2024-27

National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing (AML/CFT/CPF).

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.

His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs, and Chairman of the Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, said: “I would like to express my appreciation to the National Committee and its General Secretariat for their exceptional efforts in preparing and delivering the UAE’s new strategy for anti-money laundering, combating the financing of terrorism (AML/CFT) and the financing of illicit organizations. This initiative follows the Financial Action Task Force’s (FATF) decision to delist the UAE from its Grey List in February 2024, further underscoring the UAE’s unwavering commitment to upholding the highest international standards.”

His Highness added, “The UAE’s proactive approach not only safeguards the integrity of the global financial system but also strengthens our position as a leading international financial center and trade hub. The UAE is committed to staying ahead of emerging threats through continuous enhancement of our AML/CFT framework, ensuring our financial system remains safe, resilient, and efficient. This was most recently evidenced by the issue of a Federal Decree in August, which aligns with the national strategy launched to protect the local financial ecosystem, to implement ground-breaking standards to counter crimes that adversely affect countries' economies. This in turn, would strengthen our economy as a financial center and an international trade hub, and protect the UAE’s citizens, residents, and society as whole from illegal practices.”

For his part, H.E. Khalid Mohammed Balama, Governor of the Central Bank of the UAE and Chairman of the National Committee for Combating Money Laundering and Financing of Terrorism and Illegal Organizations, stated: “I extend my sincere gratitude to our wise leadership for their unwavering support and guidance. I also commend the effective role of the Higher Committee for Supervising the National Strategy, led by His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and Chairman of the Higher Committee, as well as the dedicated efforts of the National Committee members and representatives from concerned authorities. Their work in shaping and advancing the objectives of the National Strategy for Combating Money Laundering and Terrorism Financing underscores the UAE’s commitment to enhancing and sustaining our national system. This ongoing effort, based on a risk-based approach and aligned with international standards, aims to safeguard the integrity and safety of the financial system both in the UAE and globally.”

For his part, H.E. Hamid AlZaabi, Secretary General of the General Secretariat, Vice Chair of the National Committee, remarked: “I extend my gratitude and thanks to His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Higher Committee for Supervising the National Strategy for Combating Money Laundering and Counter Financing of Terrorism, as well as to the Chairman and members of the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organizations. I would also like to thank our public and private sector partners for their invaluable participation and support in finalizing this strategy, which, through the diligent oversight of specialized teams by the General Secretariat, will ensure that objectives are implemented and achieved.”

His Excellency added, “The National Strategy 2024-2027 underscores the UAE’s commitment to global leadership in combating money laundering, financing of terrorism, and illegal organizations. Developed with insights from the UAE’s experience and incorporating best global practices, particularly the risk-based approach. The strategy addresses complex crimes and emerging risks, including trade-based money laundering, third-party laundering, intricate legal structures, and modern technological threats. It also integrates findings and recommendations from the recently completed National Risk Assessment, which will be disclosed in the near future.”

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.