United Arab Emirates

New Documents

UAE Central Bank Issues AML/CTF Guidance on Virtual Assets

The Central Bank of the United Arab Emirates published new anti-money laundering and counterterrorist financing guidance for regulated institutions related to virtual assets and virtual asset service providers.

June 2, 2023

UAE Highlights AML/CTF Compliance Rating Upgrades by MENAFATF

The United Arab Emirates’ state-run news agency issued a summary of the latest outcome of the latest Middle East and North Africa Financial Task Force’s evaluation of the country’s anti-money laundering and counterterrorist financing regime.

May 31, 2023

UAE Central Bank, HK Regulator Discuss Enhanced Fintech Collaboration

May 30, 2023

Brunei, Dubai Regulators Sign MoU to Enhance Regulatory Supervision

May 26, 2023

DFSA Launches Consultation on Amendments to Money Services, Crypto Framework

May 11, 2023

News

Weekly Roundup: US Treasury Assesses DeFi Risk, Emirati Authorities Yank Russian Bank’s License, and More

Germany slaps EY with audit ban, Russian oligarch financing volunteer battalion, and more, in the weekly roundup.

April 6, 2023

Midweek Roundup: FTX Executive Admits Fraud and Money Laundering, Swiss Banks Investigated for Role in Lebanese Corruption, and More

Former Goldman Sachs banker pleads for leniency, former Wells Fargo banker sentenced, and more, in the midweek roundup.

March 1, 2023

Weekly Roundup: Investigation Links EU Beneficial Ownership Opponent to Russian Oligarchs, FinCEN’s ‘Access’ Rule Sparks Debate, and More

February 10, 2023

Weekly Roundup: US Banks Rejecting Dollars from Iraq, ‘Unknown’ Option Threatens US Ownership Database, and More

January 20, 2023

Weekly Roundup: US AML Whistleblower Program Will Fuel New Cases, FinCEN Targets Human Smuggling, and More

January 13, 2023

Enforcement Actions

UAE Ministry of Economy Fines 29 Companies AED 22.6 Million for AML/CTF Failures

The United Arab Emirates Ministry of Economy imposed AED 22.6 million in fines on 29 companies in the designated non-financial businesses and professions sector for anti-money laundering and counterterrorist financing failures.

March 29, 2023

Central Bank of UAE Fines Finance Company AED1.8 Million for AML/CTF Weaknesses

The Central Bank of the United Arab Emirates imposed AED1,800,000 on an unnamed finance company for violations of federal anti-money laundering and counterterrorist financing laws.

February 3, 2023

DFSA Fines Two Firms $14,000 Total for Failing to Submit AML Returns

January 23, 2023

Central Bank of UAE Imposes AED1,925,000 Fine on Exchange House for AML/CTF Violations

December 7, 2022

Dubai FSA Fines Bank of Singapore Limited $1,120,000 for AML Deficiencies

November 14, 2022

Key Documents

UAE Enacts Amendments to AML/CTF Legislation

March 13, 2020

Abu Dhabi Regulator Updates Virtual Asset Regulatory Framework

February 27, 2020

Abu Dhabi Global Market Proposes Amendments to AML Regime

February 12, 2019

Dubai Financial Services Authority Updates AML/CTF Rules, Guidance

December 9, 2015

DFSA Updates AML/CTF Rules

August 21, 2014

Important Facts

  • The U.S. State Department identifies the United Arab Emirates (UAE) as a jurisdiction of primary concern. Though a stable regional hub for transportation, trade and financial activity, the UAE has expanded its financial services businesses and foreign trade zones, thus opening itself to be misused by illicit actors who exploit the UAE’s open business environment, global banks, exchange houses, and global transportation links to undertake illicit financial activity. Such bad actors use UAE’s complex and uneven regulatory environment, to facilitate bulk cash smuggling, trade-based money laundering and transfer of illicit proceeds. Transfers of illicit funds usually occur through commodities used as counter-valuation in hawala transactions or through trading companies illegally operating as exchange houses. Other money laundering vulnerabilities within the country include the illicit transfer of funds from narcotics produced in Southwest Asia; real estate sector; misuse of international gold and diamond trade; and use of couriers to transfer illicit funds. The UAE has comprehensive know your customer and suspicious transactions reporting regulations and permits its Central Bank freeze assets of suspicious institutions or individuals.  Additionally, the UAE has enhanced due diligence procedures for politically exposed persons, both foreign and domestic, as well as a record exchange mechanism with other governments (excluding the United States).
Source: 2019 International Narcotics Control Strategy Report (INCSR)  

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 13 High : 0
Largely Compliant : 23 Substantial : 1
Partially Compliant : 4 Moderate : 6
Non-Compliant : 0 Low : 4

The United Arab Emirates' technical compliance was re-rated in a Jan. 28, 2022 follow-up report.

BASEL i

Rank : 37/141
Score : 5.89/10

TRANSPARENCY INTERNATIONAL i

Rank : 21/180
Score : 71/100

Tax Justice Network i

Rank : 10/133
Score : 78/100