United Arab Emirates

New Documents

Central Bank of UAE Issues AML/CTF Guidance on Providing Services to Cash-Intensive Businesses

The Central Bank of the United Arab Emirates issued a new anti-money laundering and counterterrorist financing guidance for licensed financial institutions that provide services to cash-intensive businesses.

October 11, 2021

DFSA Enacts Amended Authorized Market Institutions Rule

The Dubai Financial Services Authority announced the enactment of an amended regulation, the Authorized Market Institutions Module Instrument (No. 310) 2021.

October 5, 2021

BIS Innovation Hub, Multiple Central Banks Publish Joint Report on CBDC Platform for International Payments

September 29, 2021

Central Bank of UAE Publishes Financial Crime Typologies Report

September 22, 2021

UAE Central Bank Publishes New Sanctions Screening, Transaction Monitoring Guidance

September 15, 2021

News

Weekly Roundup: FinCEN Flags Jump in Child Pornography Payments, Britain Tackles ‘Problem Gambling’ with AML, and More

German authorities split over FIU’s approach, German finance minister to testify on FIU-related raid, and more, in the weekly roundup.

September 17, 2021

Midweek Roundup: Afghan FIU Shuts Down, Japanese Banks Reconsider Remittances, and More

French lenders curtail Lebanese business over corruption, New Zealand fines derivatives trading firm more than $500,000 for AML failures, and more, in the midweek roundup.

September 15, 2021

Midweek Roundup: German Bank Fined Over Angolan Deal, Pilatus Bank Helped Politicos Funnel Suspicious Funds, and More

September 8, 2021

Weekly Roundup: Brooklyn Plaintiffs Sue Global Banks, US Officials Repatriate $452 Million to Malaysia, and More

August 6, 2021

Weekly Roundup: HSBC Hid Suspicious Transactions, UK Banks Directed to Report COVID-19 Fraud, and More

July 30, 2021

Enforcement Actions

Central Bank of UAE Fines Six Exchange Houses AED$17,311,000 for AML, Sanctions Deficiencies

The Central Bank of the United Arab Emirates imposed financial penalties totaling AED$17,311,000 against six exchange houses operating in the country.

October 6, 2021

DFSA Imposes $1.7 Million Fine on Ashish Dave of Abraaj Group for Unauthorized Activity, ML Breaches

The Dubai Financial Services Authority fined the former Dubai-based private equity firm CFO for his unauthorized activities and knowing involvement anti-money laundering violations.

August 6, 2021

CBUAE Fines Exchange House AED$496,000 for AML/CTF Violations

May 18, 2021

CBUAE Fines Individual Linked to Exchange House AED$600,000 for AML/CTF Law Violations

March 5, 2021

Central Bank of UAE Fines Exchange House AED$504,000 for AML/CTF Weaknesses

February 12, 2021

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)