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UAE Takes Bold Steps to Combat Money Laundering and Financial Crimes

The United Arab Emirates (UAE) has taken significant steps to combat money laundering and financial crimes by approving the establishment of specialized judicial bodies for prosecuting these illicit activities.

UAE Takes Bold Steps to Combat Money Laundering and Financial Crimes

The move comes as a response to increased scrutiny from the Financial Action Task Force (FATF), an international watchdog dedicated to combating illicit cash flows.


The UAE's official news agency, WAM, reported that the country has approved a proposal to create federal prosecution entities specifically focused on economic crimes and money laundering. This move is seen as a crucial first step towards investigating and cracking down on shady financial transactions.


The decision comes after the UAE was added to the FATF's "grey list" of nations requiring greater oversight due to concerns over illicit finance in March 2022. This listing was a blow to the UAE's reputation as a major financial and business hub. However, a June report by the FATF acknowledged improved efforts in the UAE to address these issues.


The establishment of specialized prosecution offices targeting illicit finance aims to bolster international investors' confidence in the UAE's business environment. It is hoped that this measure will attract more foreign businesses to invest in the UAE.

WAM highlighted the significance of this step in protecting the national economy and reducing the impact of economic and financial crimes. Despite being a resource-rich nation with a diversified economy, the UAE has faced criticism for its failure to effectively tackle suspicious financial transactions.


The UAE serves as a vital nexus connecting various regions, including the Middle East, Europe, Central Asia, and Asia. Dubai, in particular, boasts the world's busiest airport in terms of international passenger traffic and one of the busiest seaports.


Earlier this year, senior US officials visited the UAE for talks with authorities, including the central bank, to address concerns about the evasion of sanctions imposed on Russia and Iran, as well as money laundering.


The UAE's move to establish specialized judicial bodies is expected to bolster its reputation as a global financial center and strengthen its efforts in combating money laundering and financial crimes, positioning the country as a more attractive destination for international investors and businesses.

By fLEXI tEAM



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