UAE makes big strides in developing ecosystem to address financial crimes

The Ministry of Economy, Represented by the Anti-Money Laundering (AML) Department, has participated in a workshop organised by the International Monetary Fund (IMF), titled “The application of AML/CFT risk-based approach on companies operating within the Designated Non-financial Businesses and Professions (DNFBP) sector”.

The workshop aimed to prepare Mena countries for the mutual assessment of the AML/CFT ecosystem by organising training workshops and providing technical assistance in this regard.

Safia Al Safi, Director of the Anti-Money Laundering Department, Ministry of Economy, emphasised that the UAE has made significant strides in developing an integrated and advanced ecosystem to address money laundering crimes in line with international best practices and has also achieved the highest levels of compliance.

She added that the Ministry’s participation in this workshop forms part of its commitment to fostering regional and international cooperation and facilitating the exchange of expertise with partners, thus contributing to establishing a sustainable national AML ecosystem.

During her participation in the workshop, the Director of AML Department presented a worksheet highlighting the Ministry of Economy’s efforts in creating an integrated work ecosystem for efficient control over the country’s DNFBP sector. It detailed the organisational aspects and structure of the Ministry’s AML Department, the technical duties to develop detailed policies, procedures, evidence, and training and awareness workshops.

Moreover, the sheet highlighted the Ministry of Economy’s plan to assess and classify risks in the DNFBP sector and conduct field and workspace inspections based on an advanced technical infrastructure. It also detailed the Ministry’s efforts in applying administrative sanctions on violators, ongoing cooperation and institutional coordination with the supervisory authorities and the facilitation of international cooperation to exchange more experience and information.

The IMF workshop focused on the core issues of the third direct results of the FATF Methodology for assessing compliance with the FATF recommendations and the effectiveness of AML/CFT systems, which entails several axes. These include the legislation and regulations to assess countries’ compatibility with AML/CFT national and international legislation and regulations, the effectiveness of national policies and procedures in addressing money-laundering crimes, such as risk identification, customer ID verification, and risk assessment.

The methodology also addresses supervisory bodies for assessing the institutional and legal framework for dealing with AML institutions and their risk-based control capabilities in effectively implementing policies and procedures. In addition, it covered the strengthening of international cooperation, which included an assessment of the extent of countries’ collaboration with one another and with FATF and other international organisations, notably the International Monetary Fund, in anti-money laundering and combatting the financing of terrorism.

In May MoE said that violators of anti-money laundering or ultimate beneficial owner procedures may lead to administrative fines ranging from Dhs50,000 to Dhs1,000,000, .

This was announced as the ministry held an extensive media briefing on the system for combating money laundering; combating the financing of terrorism; the financing of illegal organisations; and the financing of the proliferation of weapons of mass destruction. The session also briefed attendees on most important international obligations in this regard, laws and decisions related to them, the obligations they place on the public and private sectors, and the Ministry’s and its partners’ efforts in this field.

The event also dealt with the Ministry’s efforts in organising the ultimate beneficial owner procedures and the implementation of the Ministry’s and its partners’ plan to collect data on the ultimate beneficiaries of private sector establishments, in addition to the efforts undertaken in the field of control and inspection, ensuring the implementation of legal requirements and achieving the country’s international obligations in this regard.

Safeya Al Safi, Director of the Anti-Money Laundering Department at the Ministry of Economy; Ahmed Al Hosani, Director of the Commercial Registration and Certificates of Origin Department; and Mohamed Janahi, Head of Money Laundering Control Department at the Ministry of Economy; addressed the media during the briefing session.

“Money laundering and terrorism financing crimes are a major concern that plagues most of the world’s economies, especially today with the advent of modern digital technologies in the financial sector, trade and investment activities and doing business. These provide new tools and complex systems for money launderers to commit crimes.”