UAE's Fight Against Money Laundering: Dh115 Million in Fines Issued in Q1 2023



The United Arab Emirates (UAE) has taken a strong stance against money laundering, with fines and confiscations increasing during the first quarter of 2023.\

The UAE has been a member of the Financial Action Task Force (FATF), an intergovernmental body that develops policies to combat money laundering since 2007. In October 2018, it was one of 34 countries to sign on to an agreement with FATF requiring them to criminalize all forms of terrorism financing within their borders by 2020 or face sanctions from other members.


The UAE has issued fines of more than Dh115 million in the first quarter of 2023

The number of fines issued in Q1 2023 was 10, with a total amount of Dh11,525,000 being imposed by Dubai Financial Services Authority (DFSA), Abu Dhabi Securities Exchange (ADX) and Dubai International Financial Centre (DIFC).

The UAE has frozen the assets of more than Dh115 million in Q1 2023, according to data released by the Ministry of Finance. This includes confiscations from individuals who were found guilty of money laundering crimes. The ministry said that it has also confiscated cash worth around Dh4 million during this period.

Confiscations: In addition to these figures, there were also several other cases where individuals were convicted of money laundering offenses but did not have any funds available for confiscation or forfeiture because they had already been spent on personal expenses such as buying luxury cars or houses abroad.

The UAE has taken several steps to ensure that financial institutions are compliant with AML/CFT measures. The Central Bank of the UAE (CBUAE) has issued circulars on various aspects of AML/CFT, including one that requires banks and financial institutions to conduct customer due diligence (CDD) on all new customers. In addition, the CBUAE has issued regulations that require reporting suspicious transactions by all entities operating in the country. The UAE government also requires businesses to implement an effective internal control system and maintain adequate records for five years after they cease operations or terminate their relationship with a customer or beneficial owner.



The Financial Action Task Force (FATF) is an intergovernmental body established in 1989 to develop comprehensive international standards for combating money laundering and terrorist financing.\

The FATF has 37 members and 3 regional organisations, representing most of the world's major economies. It works closely with other international organisations such as the United Nations and the World Bank.

The UAE is a major trade and investment hub for the region. The country's strategic location, political stability and economic strength make it an attractive destination for foreign investors. In addition to being home to some of the world's largest banks, Dubai International Financial Centre (DIFC) has attracted over 1,800 companies from around 100 countries since its establishment in 2004.\

The UAE has taken significant steps towards implementing effective AML/CFT measures in line with international standards through legislative reforms that include:

*   Combating money laundering through criminalizing terrorist financing;

*   Enhancing customer due diligence requirements;

*   Strengthening information sharing between financial institutions and law enforcement agencies;

*   Establishing an independent central bank dedicated solely for financial supervision;

The Executive Office for Anti-Money Laundering and Counter-Terrorism Financing (EAML) is the UAE's financial intelligence unit. It has the responsibility to detect, prevent and combat money laundering activities through its regulatory framework.\

The EAML works closely with other government authorities in order to ensure that all financial institutions comply with their obligations under federal laws, including those related to combating terrorism financing and money laundering. These include conducting customer due diligence; filing suspicious transaction reports (STRs); maintaining records of transactions for at least five years; reporting suspicious transactions; cooperating with law enforcement agencies when required; implementing policies and procedures designed to prevent ML/TF risks within their operations etc..

The UAE government is working with the private sector to ensure effective AML/CFT measures. The Central Bank of the UAE (CBUAE) has issued guidelines for financial institutions and other regulated entities, requiring them to identify their customers, monitor transactions, report suspicious activities and maintain records for at least five years.\

The CBUAE also established an Anti-Money Laundering Unit (AMLU) within its regulatory arm in April 2018 as part of its efforts to combat money laundering and terrorist financing across all sectors of society in accordance with international standards set by FATF (Financial Action Task Force).

The UAE has taken steps to combat money laundering and terrorist financing, including increasing fines and confiscations. In addition, the country has introduced the Financial Action Task Force (FATF), which aims to develop policies that will help prevent money laundering.\

The FATF is an intergovernmental body that sets standards for combating financial crimes such as terrorism financing and money laundering. The organization publishes a list of countries whose laws do not meet international standards for preventing these crimes; if your country's name appears on this list, you may have trouble opening bank accounts or getting loans in other countries because they will think your country is unsafe for investment purposes.


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