Reaffirming its commitment to financial integrity, the UAE has launched a comprehensive national strategy to combat financial crime for the period 2024-2027. The new strategy aims to immunize the UAE’s financial system from any illicit exploitation attempts through stringent precautionary and control measures. In doing so, the UAE reaffirms its leadership in combating money laundering, terrorist financing, and the financing of the illicit proliferation of weapons, thereby contributing to enhancing confidence in its economic and investment environment.

The strategy is based on several key pillars, including:

• Risk-Based Compliance:  Risk-based compliance is a proactive approach that focuses on identifying and assessing an organization’s specific risks associated with money laundering and terrorist financing. These risks may arise from various aspects, including the nature of the customers, the products and services offered, the organization’s geography, and the channels used for transactions. The organization adopts proportionate preventive measures for each type of risk through this approach, considering its dynamic and ever-changing nature.
• Effectiveness: Effectiveness is about ensuring that the measures taken to combat financial crime achieve the objectives strategically and operationally. This is measured through various indicators, such as reduced money laundering rates, increased number of suspicious activity reports, and improved rankings in international indices.
• Sustainability is about building a solid and integrated financial crime-fighting system to meet ever-changing challenges. This system requires investing in qualified personnel, adopting the latest technologies in data analysis and detection of suspicious activities, and building strong partnerships with local and international stakeholders.

The strategy identifies several objectives as follows:

• Strengthening the legal and regulatory framework: Modernize laws and regulations per international standards and best practices.
• Enhance international cooperation: Enhance cooperation with other countries and international organizations to combat cross-border financial crimes.
• Raising awareness: Raising awareness of the dangers of money laundering and terrorist financing among all segments of society.
• Strengthening institutional capacities: Building the capacities of personnel working to combat financial crimes.
• Improving information collection and analysis: Developing advanced systems for collecting and analyzing financial information.
• Strengthening supervisory oversight: Intensify oversight of financial and non-financial institutions.
• Combat the financing of terrorist organizations: Taking strict measures to combat the financing of terrorist organizations.

The strategy is expected to enhance the UAE’s reputation as a safe and reliable global financial center, protect the UAE’s financial system from being exploited for illicit purposes, contribute to economic and social stability in the country, and support international efforts to combat terrorism and extremism.

This strategy is an important step in the UAE’s journey towards building a more transparent and secure financial system. The UAE seeks to play a leading role in combating financial crime globally through its commitment to applying the highest international standards and collaborating with international partners.