UAE Seizes $639m Of Assets For Money-Laundering Violations

The UAE is working well in combating money laundering and terrorism financing. In 2023, the authorities seized assets whose total value exceeded $639 million for a violation of anti-money laundering laws.

The crackdown underlined the official position of the UAE toward financial crime. Authorities want to keep illegal activities away from the country’s financial system and ensure that the laws are followed up to the letter.

Such steps indicate the UAE’s commitment to combating financial crimes. This positions the country as a haven for effective contributions to a trustworthy global financial hub.

UAE’s Commitment to Financial Integrity

 

Talking at the Asia Pacific Group on Money Laundering, he commended the progress that was made in this year’s conference regarding financial crimes.

The laws were amended to strengthen the power and capacities of the UAE to deal with new threats and maintain its global financial stature.

Fines and Inspections

Besides asset takeover, the UAE issued fines worth more than $69m for money laundering offenses in 2023.

The Central Bank inspected more than 115 at the field level and imposed fines worth $31m. 

On the other hand, the Ministry of Economy inspected 3,371 and imposed fines amounting to $27m. 

For the first time, inspections in the gold segment soared significantly, with fines of more than AED 78.65 million ($21m).

Gold Sector Under Scrutiny

One area the UAE focused on in a long battle against financial crime is the gold business.

In August 2024, the Ministry of Economy suspended 32 local gold refineries for failing to abide by the rules set by anti-money laundering.

Out of the total, 256 were violations observed between them. Suspensions of these gold refineries on a monthly basis since July and October 2024 have become the clarion call to other businesses in this line.

With this increase in enforcement, it is evident that the UAE can take any measure to prevent its gold industry from being misused for money laundering and financing terrorism.

This led to increased checks in the gold sector that fetched them AED 78.65 million ($21 million) in fines.

This measure justifies the country’s seriousness about stamping out illegal activities in its critical sectors of the economy.

Read Also:

• UAE Suspends 32 Gold Refineries to Combat Money Laundering
• UAE Imposes Dhs5m Fine on Foreign Bank for Money Laundering Violations
• UAE Govt Issues New Amendments in the AML Law

Global Cooperation

The UAE is on the correct path towards other international cooperation aimed at fighting financial crimes.

The country has entered into 45 mutual legal assistance treaties to facilitate the exchange of information and cooperation with other countries.

Such treaties play an important role in efforts against money laundering and terrorism financing at the global level.

This enables the UAE to operate closely with other nations in the pursuit of cross-border financial crimes, tracing money flows from one country to another.

Besides the deals already signed, the UAE is in line to sign others in 2024 and 2025. These will further protect the international partnership and help the country fight financial crime on the global level.

Borders, the UAE acknowledges, do not limit financial crimes and, thus, must be well understood among the international community as it fights such issues effectively.

A Stronger Legal Framework

The UAE Cabinet has appointed Hamid Al Zaabi as Secretary-General of NAMLCFTC through a new UAE Cabinet resolution, among a number of other proposed amendments to Federal Decree Law No. (7) of 2024, and aimed towards enriching the anti-money laundering system in the country.

The new framework will enable the UAE to build a highly resilient and more sustainable money laundering and financing of terrorism counter-system.

What Is the Impact on the Financial Sector?

These efforts show how seriously the UAE is taking the protection of its financial system.

When the state strengthens its cooperation with all the partners internationally and develops its national anti-money laundering system, then it occupies its place in the global map of financial hubs.

It will give a guarantee that the country will be competitive and will be able to manage the risks appropriately related to financial crimes.