UAE Reports Progress in Efforts to Be Removed from FATF Watchlist

The United Arab Emirates (UAE) has announced significant strides in its campaign to be removed from the Financial Action Task Force (FATF) watchlist, commonly known as the "grey list."

The country's Foreign Affairs Minister, Abdullah bin Zayed Al Nahyan, presided over a recent meeting focusing on the UAE's Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) national strategy, during which updates on efforts to exit the FATF watchlist were presented.

Hamid Al Zaabi, Director-General of the AML Executive Office (EO AML/CTF), delivered a report on the noteworthy progress achieved across all aspects of the UAE's FATF Action Plan. One of the key highlights shared during the meeting was a 48% surge in Suspicious Transaction Reports (STRs) during the first half of 2023. This increase was attributed to enhanced awareness efforts carried out by relevant authorities in the UAE, leading to a deeper understanding of AML/CFT regulations within the private sector.

Despite these positive developments, foreign governments have expressed ongoing difficulties in securing the extradition of suspects involved in gangland and organized crime activities. Notably, Dubai has become a hub for several organized crime groups, including the infamous "Kinahan Cartel" led by Christy Kinahan and his sons, who are wanted in Europe for drug trafficking offenses. The reluctance of the UAE to extradite these individuals, each with a $5 million bounty on their heads, has been a point of contention.

Separately, the UAE emphasized its commitment to international collaboration through requests for international judicial cooperation and the signing of new Mutual Legal Assistance Treaties.

Local supervisory authorities in the UAE have continued to operate under a Risk-Based Approach (RBA), imposing fines exceeding AED 210 million on non-compliant companies since the start of the year, along with administrative measures and violations.

In the realm of transparency and company registration, registries have introduced new measures to enhance corporate compliance with Beneficial Ownership (BO) requirements.

Regarding Money Laundering (ML) investigations, the meeting highlighted an increase in the quality and quantity of money laundering cases, aligning with the UAE's risk profile. The discussions also emphasized the significance of statistics published in reports and referrals made by law enforcement agencies, in addition to recent convictions and confiscations.

Over the past two years, the UAE reported confiscations exceeding AED 4 billion, and the collaborative efforts of law enforcement agencies in the country led to the arrest of 387 international suspects in cooperation with various foreign law enforcement entities.

The meeting brought together high-level officials from various UAE ministries and organizations, underscoring the nation's commitment to addressing AML/CFT challenges and demonstrating its dedication to FATF compliance.

By fLEXI tEAM