Understanding UAE’s Anti-Money Laundering Policy: A Concise Overview

Anti-Money Laundering (AML) encompasses laws, regulations, and procedures designed to prevent, detect, and report activities involving the conversion of illicit funds into legitimate assets and concealing the proceeds of illegal activities. Compliance with AML regulations requires financial institutions and regulated entities to implement specific measures, such as Customer Due Diligence, Transaction Monitoring, and Reporting Suspicious Activities and Transactions.

In the UAE, the fight against money laundering and terrorism financing is governed by Federal Decree No. 20 of 2018, implemented through Cabinet Decision 10 of 2019. This comprehensive law applies to financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs), including banks, money exchangers, dealers of precious metals and stones, real estate agents, accountants, auditors, and lawyers.

To prevent and detect money laundering and terrorist financing, these entities must undertake various actions, including customer due diligence, record-keeping, reporting of suspicious activities/transactions to the Financial Intelligence Unit (FIU), implementing internal controls, employee training, and risk assessment.

Non-compliance with AML regulations can lead to significant penalties, such as fines, imprisonment, and license revocation. The law facilitates information sharing between entities and other countries to enhance detection and prevention efforts.

This legislation is a significant step forward for the UAE in combatting money laundering and terrorism financing, reinforcing the country’s reputation as a secure hub for international business and finance. The Federal Decree No. 20 of 2018 underscores the UAE’s commitment to strengthening its regulatory framework and ensuring a robust financial system, free from illicit activities.

Promoting goAML System Registration for DNFBPs in the UAE

The Ministry of Economy (MoE) has initiated a campaign to encourage Designated Non-Financial Business and Professions (DNFBPs) in the UAE to register with the Financial Intelligent Unit (goAML). This registration campaign aims to enhance compliance with Federal Law No. 20 of 2018, targeting money laundering crimes and the funding of terrorist organizations. Additionally, the campaign urges targeted groups to submit written submissions to the Committee on Goods Subject to Import and Export Control, as well as to take necessary actions in accordance with relevant legislation and regulations.