The UAE has made significant improvements in combating financial crimes with the introduction of a new Federal Decree-Law, bringing vital updates to its anti-money laundering (AML), combating of the financing of terrorism (CFT), and illegal organization financing frameworks. This comes on the heels of the UAE's removal from the FATF grey list, highlighting the importance of robust AML controls for business security. The changes introduced by the law underscore the UAE’s ongoing commitment to strengthening its legal and regulatory systems as global threats evolve. The decree not only strengthens the country’s legal defences but also aligns them with international standards, reinforcing the UAE’s position as a leader in combating financial crime on the global stage.

The amendments reorganize existing oversight bodies rather than creating new ones. A key feature of the law is the establishment of the National Committee for AML, CFT, and Financing of Illegal Organizations (NAMLCFTC). Formed by Cabinet decision, this body will lead the UAE’s strategies against financial crimes and ensure they meet both national and global standards. By centralizing efforts under this Committee, the UAE aims to enhance coordination and effectiveness in addressing financial crimes, thereby elevating compliance and enforcement across the nation. Moreover, the Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Counter Terrorism Financing will be rebranded as the Supreme Committee and operate under the Presidential Court.

Another key change is the establishment of a General Secretariat for the National Committee, which aims to improve operational efficiency. The General Secretariat is set to enhance operational capabilities by providing dedicated resources. Comprising representatives from various AML oversight bodies, its specific structure and functions are still to be determined, but it aims to improve organization and efficiency in combating money laundering.

Although the amendments do not fundamentally alter compliance requirements, they signify the UAE's commitment to strengthening AML governance. Recent actions, such as significant fines issued by the Central Bank and license revocations by the Ministry of Economy for AML failures, underscore this resolve. Looking ahead, companies can expect an intensified enforcement landscape as the UAE prepares for its next FATF evaluation between 2025 and 2027, with a focus on compliance with evolving standards and enhanced information sharing among AML stakeholders.

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