In a recent report, the International Monetary Fund (IMF) praised the UAE's efforts to combat financial crime and money laundering.
The Washington-based fund praised the Central Bank of the United Arab Emirate's Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) unit for implementing a risk-based "supervisory framework."
"Noting that the banking sector remains adequately capitalised," the report stated, "Directors called for continued monitoring of financial stability risks and digitalisation challenges, including through strengthened macroprudential and regulatory frameworks"
"Directors welcomed the progress made with the AML/CFT framework and encouraged the authorities to sustain the reform momentum," according to the report.
"We will continue to safeguard the country’s financial sector from illicit activity," said Hamid Al Zaabi, Director-General of the Executive Office of AML/CTF.
The Executive Office of AML/CTF, which was established last year, deals with money launderers, terrorist funding organizations, and criminals suspected of financing them.
"Prioritisation of reform efforts would be important to help lift potential growth and facilitate economic diversification," the report stated.
In November 2020, the Ministry of Economy established an anti-money laundering department to ensure that non-financial businesses and professionals follow local laws.
According to MSN Money, Dubai established a one-of-a-kind court in August 2021 to combat money laundering and strengthen the integrity of its financial system.
In August, the Financial Intelligence Unit and China's Anti-Money Laundering Monitoring and Analysis Centre teamed up to fight global money laundering and terrorism financing.
By fLEXI tEAM