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As the UAE Prepares for the Evaluation by the Money Laundering Task Force, Discover How eBOS' WiseBOS Suite Empowers Compliance Excellence
In its recent drive to combat money laundering and terrorism financing, the United Arab Emirates (UAE) has recently achieved remarkable milestones. Between March and mid-July 2023, the UAE successfully seized assets valued at an impressive AED 1.3 billion ($354 million). Additionally, fines totalling AED 199 million ($54 million) were imposed in the first half of the year to tackle money laundering, exceeding the combined total fines for the years 2022 (AED 76.2 million – $20.7 million), 2020 (AED 8.4 million – $2.3 USD), and 2019 (AED 800,000 – $217,835). These substantial accomplishments are a testament to the UAE’s commitment to upholding the integrity of its financial system.
Key Reforms include:
Enhanced Cooperation Through MLA Requests:
The UAE’s progress is underpinned by several key reforms, including a significant increase in outbound Mutual Legal Assistance (MLA) requests. This proactive measure streamlines money laundering and terrorist financing investigations, fostering enhanced global cooperation;
Heightened Risk Awareness and Effective CDD:
Another pivotal reform centres on improving the understanding of money laundering and terrorism financing risks. This includes the implementation of risk-based Customer Due Diligence (CDD) measures in Designated Non-Financial Businesses and Professions (DNFBP) sectors;
Preventing Abuse of Legal Entities:
The UAE has developed a comprehensive understanding of the risk of legal entity abuse and introduced risk-based mitigating measures to prevent such abuses;
Strengthening the Financial Intelligence Unit:
Additional resources have been allocated to the Financial Intelligence Unit (FIU) to enhance its capacity for providing financial intelligence to Law Enforcement Agencies (LEAs). The utilisation of financial intelligence from foreign counterparts further equips the UAE to address high-risk money laundering threats;
Increased Investigations and Prosecutions:
The UAE has ramped up its efforts to combat money laundering by increasing the number of investigations and prosecutions, closely aligning these actions with the country’s risk profile;
Effective Targeted Financial Sanctions (TFS):
The effective implementation of Targeted Financial Sanctions (TFS) is another crucial facet of the UAE’s reforms. Noncompliance among reporting entities is met with penalties, demonstrating a firm understanding of UN sanctions evasion within the private sector.
As a testament to its robust measures and substantial progress, the UAE has secured approval for an upcoming inspection by the Financial Action Task Force (FATF). The announcement was made during a meeting in Paris on Friday, 27th of October 2023. The FATF commends the UAE for its dedication to supporting money-laundering investigations, enforcing sanctions for non-compliance within financial institutions, and increasing the number of prosecutions. These measures are pivotal in removing the UAE from the FATF’s list of countries subject to enhanced monitoring.
A successful inspection could potentially lead to the UAE, alongside other jurisdictions such as Barbados, Gibraltar, and Uganda, being removed from the FATF’s grey list during the upcoming February session. It is worth noting that the UAE was added to the grey list the previous year, making this inspection a highly significant event on the horizon.
To further bolster organisational compliance capabilities while reducing costs and enhancing operational efficiency, organisations can leverage eBOS’ WiseBOS Suite – a cutting-edge, fully integrated solution. WiseBOS Suite comes equipped with user-friendly graphical interfaces and intuitive components that span a wide array of services, encompassing effective and efficient Governance, Risk & Compliance Management, AML, Transaction Monitoring, electronic Customer Verification, Customer Screening, and much more. All WiseBOS solutions can operate independently as stand-alone solutions or seamlessly integrate as part of a unified Suite, fostering interoperability, boosting productivity, and enriching cost-effective functionality.