UAE Govt Issues New Amendments in the AML Law

UAE made amendments on 11 August 2024 in certain sections of the previous Federal Decree-Law for Anti-money laundering (AML), combating the Financing of Terrorism (CFT), and funding to illegal organizations by releasing a Federal Decree-Law from the Government of the United Arab Emirates.

This update demonstrates the UAE’s determination to comply with international AML/CFT guidelines and preserve the credibility and integrity of its financial system.

Strengthening the legal framework

The main goal of the decree is to strengthen the legal framework to enhance the effectiveness of national authorities in charge of fighting financial crimes while keeping up with the ongoing growth of the legislative and judicial system.

For this purpose, it focuses on improving the United Arab Emirates’ technical compliance with global guidelines and accords.

Furthermore, the law supports the UAE’s national plan to safeguard the country’s financial system by introducing advanced and cutting-edge guidelines and initiatives to combat financial crimes that can negatively impact and damage the country’s economic state.

Key Amendments

National Committee

One of the improvements is the development of a “National Committee” for

• Anti-Money Laundering (AML)
• Combating the Financing of Terrorism (CFT)
• and Financing of Illegal Organizations

This committee will be officially established after approval from the UAE Cabinet.

Supreme Committee

Establishing the “Supreme Committee” is another accomplishment of this update. This committee is created for

• Overseeing the national policies and planning related to financial crimes.
• Including money laundering and Counter-Terrorism Financing.

The cabinet will decide details about setting up the committee and its operations.

Obligations of the Supreme Committee

According to the Decree, the Responsibilities of the Supreme Committee are

• Researching, supervising, and evaluating the impact of plans and measures put in place by the National Committee for Combating Financial Crimes, such as Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) and funding to Illegal Organizations.
• The Supreme Committee will set guidelines to be monitored, and regulatory measures will be followed by the National Committee and relevant groups.
• Finally, the committee will take significant steps about how the rules should be applied and monitor their implementation.

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Coordination and compliant with international standards

The new decree focuses and promotes the coordination of the National Committee with relevant groups, ensuring that these bodies are guided and encouraged to assist the National Committee.

This collaboration will have a significant impact overall as

• It will improve the effectiveness of the National Committee’s operations.
• It will assist the National Committee in supervising the development of a Mutual Evaluation Report written to assess the country’s compliance with international guidelines and regulations for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) and ensure its implantation.

General Secretary and His Role

The decree further mandates that the National Committee establishes a General Secretariat supervised by the General Secretary.

The secretary-general will have two key roles

• Will perform duties of  Vice-Chairperson of the National Committee.
• Will be a member of the Supreme Committee.

UAE’s Advancements in AML/CFT Compliance

The UAE has made remarkable improvements in its anti-money laundering (AML) strategic approach over time.

For 3 months, operations of 32 local gold refineries have been suspended due to violations of AML laws.

In addition, the United Arab Emirates recently established a National Committee for anti-money laundering (AML) and Combating the Financing of Terrorism (CFT).

UAE Central Bank imposed a Dh5.8 million ($1.6 million) fine on a bank as the bank has violated AML/CFT laws.

In February, the UAE was removed from the Financial Action Task Force (FATF) ‘s “grey list.”

As a news agency reported, this is another demonstration of the improvements made in recent years to combat financial crimes and preserve the integrity of financial systems.