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AML in UAE Regulatory Impact on Financial Sector

AML in UAE: Regulatory Impact on Financial Sector

The UAE has shown a strong commitment to combat crimes related to money laundering and financing of terrorism (ML-FT) by enacting robust regulations. The Federal Decree-Law No. 20/2018 Anti-Money Laundering and Countering the Financing of Terrorism (AML-CFT) and its amendments are reflective of this commitment. The UAE’s AML-CFT regulations have laid a solid foundation for criminalizing money laundering and addressing the broader issues related to illicit financial activities.

The UAE’s comprehensive AML-CFT legal framework profoundly impacted the country’s financial sector. In this blog, we discuss the regulatory impact of AML-CFT laws in the UAE’s financial sector. Consult with AML consultants in Dubai for further information on AML compliance. Read ahead for more insights:

Stringent Regulatory Framework

A robust legal framework was established in the UAE after the issuance of the AML Law (Federal Decree-Law No. 20/2018). This was reinforced through Cabinet Decision No. 10/2019 and its amendments.

The UAE AML Laws mandate that financial institutions designated non-financial businesses and professions (DNFBPs) and Virtual Assets Service Providers (VASPs) must implement strong AML and CTF measures. DNFBPs in the UAE are real estate agents, dealers of precious metals and precious stones, trust and corporate service providers and auditors.

Risk-Based Approach

The authorities overseeing AML compliance in the UAE put thrust on a risk-based approach towards combatting ML-FT. In line with this approach, the financial institutions in the UAE are required to identify, assess, and mitigate the risks associated with ML-FT.

A risk-based approach is key to ensuring the resources are allocated proportionally to the level of risk faced by the financial institution.

Enhanced Due Diligence

This includes enhanced checks for:

  • High-risk customers, businesses, and transactions.
  • Beneficial ownership disclosure
  • Verification of the source of funds

Consult with the Best AML Consultants in the UAE

The financial sector in the UAE is rapidly growing thanks to the latest innovations such as Fintech and cryptocurrencies. However, the financial sector is vulnerable to ML-FT crimes. The UAE has a robust AML-CFT framework which has positively impacted the country’s financial sector. If you want to ensure seamless AML compliance in the UAE,  hire Jitendra Chartered Accountants (JCA).

We are one of the leading accountants offering AML services as well. We have a dedicated team to ensure our clients are complying with the UAE AML Law. JCA is a cost-effective AML services provider in the UAE.

Our AML services include:

  • Development of AML-CFT Framework (One-time Service)
  • AML Training
  • Screening of clients (New / Old) for background checks
  • Customer Due Diligence (CDD) Procedures
  • Customer Risk Rating (CRR).
  • AML-compliant database to check against TFS
  • GoAML Reporting like DPMSR / REA
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