A new Federal Decree-Law has been issued in the UAE, which amends the current legislation on countering money laundering and terrorist financing. It is aimed at protecting the country's financial ecosystem, strengthening the legal framework to combat illegal financial activities and bringing it in line with international standards.
In accordance with the innovations, additional measures will be taken to strengthen supervision and coordination of key market players:
- Strengthening collaboration among Financial Institutions, Designated Non-Financial Businesses and Professions (DNFBP), who are required to notify relevant authorities of suspicious transactions — real estate agents, sellers of precious stones and metals, etc.
- Improving the information exchange process
- Simplification of reporting processes.
Several specialized organizations will also be created in the UAE:
- The National Committee for combating money laundering, terrorist financing and financing of illegal organizations
- The Supreme Committee for supervision of the implementation of the National Strategy to combat money laundering, terrorist financing and financing of illegal organizations
- The General Secretariat, which provides support to these Committees.
The amendments to the legislation will help strengthen the UAE's international reputation as a reliable financial centre. Recall that in February 2024, the World Organization for Combating Financial Crimes
(FATF) excluded the Emirates from the «gray list», which includes countries with identified shortcomings in the system of combating money laundering and terrorist financing.