UAE Unveils 2024-2027 National Strategy for AML and CFT
Following the approval of the UAE Cabinet on September 2, 2024, the UAE has launched its 2024-2027 National Strategy for Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Proliferation Financing (CPF). This comprehensive strategy is designed to enhance the country’s ability to combat financial crimes and maintain alignment with international standards.
Legislative and Regulatory Reforms to Combat Financial Crimes
The newly launched strategy is built around 11 strategic goals, focusing on enhancing legislative and regulatory reforms to prevent the impact of illegal activities on society. The General Secretariat of the National Committee, in collaboration with key stakeholders, has developed the strategy using insights from the National Risk Assessment, ensuring that it aligns with the highest international standards.
H.H. Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Higher Committee Overseeing the National Strategy on AML and CFT, 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 organisations. 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.”
Sheikh Abdullah also highlighted the significance of the strategy in positioning the UAE as a global financial hub: “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.”
Focus on Digital Assets and Virtual Currencies
As the financial landscape evolves with the rise of digital assets and virtual currencies, the UAE’s new strategy acknowledges the unique risks posed by these technologies. The UAE government has included specific measures within the strategy to ensure that virtual currencies are not exploited for illicit activities. The strategy emphasizes the importance of risk-based compliance for entities operating within the digital asset space and highlights the need for continued development of regulatory frameworks to keep pace with technological advancements.
Khaled Mohamed 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, commented on the broader impact of the strategy: “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 H.H. Sheikh Abdullah bin Zayed Al Nahyan. Their work in shaping and advancing the objectives of the National Strategy underscores the UAE’s commitment to enhancing and sustaining our national system.”
Enhancing International Cooperation and Compliance
The strategy also places a strong emphasis on enhancing international cooperation and strengthening information-sharing mechanisms between national and international partners. This will ensure that the UAE remains aligned with global best practices in combatting money laundering and terrorism financing, particularly in the face of modern technological threats such as cybercrime and virtual assets.
Hamid Al Zaabi, Secretary-General of the General Secretariat and Vice Chair of the National Committee, echoed these sentiments: “The National Strategy 2024-2027 underscores the UAE’s commitment to global leadership in combating money laundering, financing of terrorism, and illegal organisations. 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.”
Al Zaabi further highlighted the importance of adapting to modern financial risks: “The strategy also integrates findings and recommendations from the recently completed National Risk Assessment. We will continue to optimize the use of financial data for effective investigations and asset recovery, maintain robust frameworks to combat terrorism financing, and ensure continuous updates to our legal and regulatory frameworks.”
Conclusion
The UAE’s 2024-2027 National Strategy for AML/CFT/CPF sets a robust foundation for addressing the challenges posed by both traditional and digital assets. By fostering collaboration between the public and private sectors and enhancing international partnerships, the UAE is well-positioned to remain a global leader in the fight against financial crimes.
