UAE launches “National Strategy to Combat Money Laundering and Terrorist Financing”

The United Arab Emirates announced its new national strategy for the years 2024-2027 to combat money laundering and the financing of terrorism and the financing of the proliferation of weapons, which was approved by the Cabinet last Monday after being submitted by the Higher Committee for Supervising the National Strategy for Combating Money Laundering and the Financing of Terrorism. The strategy sets 11 goals for the legislative and regulatory reforms that the UAE is taking to combat the impact of these illicit activities on society. The General Secretariat of the National Committee worked, in partnership with various stakeholders, to develop the country’s new national strategy.
The strategy is based on the latest national risk assessment, which was developed using the World Bank Group methodology to ensure consistency with the highest international standards, while the private sector contributed to the assessment by participating in the final stage consultations.
His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs and Chairman of the Higher Committee for Supervising the National Strategy for Combating Money Laundering and the Financing of Terrorism, expressed his thanks and appreciation to the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organisations and the General Secretariat for their exceptional efforts in preparing and presenting the new UAE strategy for combating money laundering and the financing of terrorism and illegal organisations. He explained that this initiative comes after the Financial Action Task Force (FATF) decision to remove the UAE from the grey list in February 2024, which confirms the country’s commitment to implementing the highest international standards.
His Highness added: The UAE’s proactive approach will not only protect the integrity of the global financial system, but also enhance our position as a leading international financial and trade center. The country is committed to continuing to anticipate emerging threats by continuously improving its anti-money laundering and countering the financing of terrorism framework, and ensuring that our financial system remains safe, resilient and effective. This was demonstrated by the issuance of a federal decree last August that is fully in line with the national strategy launched to protect the local financial system, in order to implement leading standards to combat crimes that negatively impact the economies of countries, stressing that this will strengthen our economy as an international financial center and a center for global trade, and provide protection for our people, residents and society in general from illegal practices.
In turn, His Excellency Khalid Mohammed Balama, Governor of the Central Bank of the UAE and Chairman of the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organisations, expressed his thanks and appreciation to the wise leadership for their support and guidance, and the effective role of the Higher Committee for Supervising the National Strategy for Combating Money Laundering and the Financing of Terrorism, headed by His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs and Chairman of the Higher Committee, and the efforts of all members of the National Committee and representatives of the concerned authorities in formulating and developing the objectives of the National Strategy for Combating Money Laundering and the Financing of Terrorism and the Financing of Illegal Organisations, which confirms the UAE’s commitment to continue working on developing and sustaining the national system for combating money laundering and the financing of terrorism and its forward-looking vision in combating financial crimes and illicit financial flows, based on a risk-based approach and in line with international standards with the aim of ensuring the integrity and safety of the financial system in the UAE and the world.
For his part, Hamed Al Zaabi, Secretary-General of the National Committee and Deputy Chairman of the National Committee, expressed his thanks to His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs and Chairman of the Supreme Committee for Supervising the National Strategy to Combat Money Laundering and Terrorist Financing, and to the Chairman and members of the National Committee to Combat Money Laundering and Combat the Financing of Terrorism and Illegal Organizations, and to all partners from the public and private sectors for their effective participation and support in completing this strategy, which the General Secretariat will work on through its specialized work teams to follow up on the implementation and achievement of its objectives.
He explained that the “National Strategy 2024-2027” confirms the country’s ongoing efforts to achieve global leadership in the field of combating money laundering, combating the financing of terrorism and the financing of illegal organizations,” noting that “the national strategy was prepared based on the country’s acquired experience, taking into account the best global practices and methodologies, especially the risk-based approach, as the strategy set priorities that focus on the most complex crimes and emerging risks, such as trade-based money laundering, third-party money laundering, complex legal structures, and risks associated with modern technologies. It also relied on the results and recommendations of the recently completed National Risk Assessment, the results of which will be announced soon.”
The National Strategy focuses on the core pillars of risk-based compliance, effectiveness and sustainability. It includes enhancing national and international coordination to improve information sharing and partnerships, ensuring effective oversight of AML/CFT and proliferation financing obligations in the private sector, and enhancing the detection, investigation and disruption of illicit financial activities.
The new strategy emphasizes strengthening human and technical resources, improving data collection and analysis, and continuously updating the legal and regulatory framework to adapt to evolving risks and support transparency and the rule of law, and highlights the risks associated with virtual assets and rapidly evolving forms of cybercrime.
The strategy’s approach includes improving the level of understanding of risks across sectors, enhancing international cooperation and strategic partnerships, strengthening oversight of financial institutions and designated non-financial businesses and professions, and improving the transparency of beneficial ownership information.
In addition, the approach includes improving the use of financial intelligence to conduct effective investigations and recover assets, maintaining strong frameworks to combat the financing of terrorism and the financing of illegal organizations, updating legal and regulatory frameworks to keep pace with global standards, enhancing coordination and cooperation between the public and private sectors, developing centralized data systems for monitoring, and ensuring adequate resources and training for various entities.
The General Secretariat of the National Committee will oversee the implementation of the new strategy to ensure its consistency with the UAE’s objectives while maintaining commitment to international standards. Progress reports will be submitted regularly to the Supreme Committee for Supervising the National Strategy to Combat Money Laundering and Terrorist Financing.