ABU DHABI, twenty fifth August, 2022 (WAM) — The Government Workplace of Anti-Cash Laundering and Counter Terrorism Financing (EO AML/CTF), met on Thursday to conclude a overview on progress within the first half of 2022.
Highlights Embrace:
The UAE has signed 5 new worldwide judicial cooperation agreements (IJCAs) with: the US, Russia, Netherlands, Denmark, and Italy.
Common strategic engagement and technical workshops have been held with the European Union (EU), the US and United Kingdom.
The Nationwide Financial Registry now incorporates the last word helpful possession (UBO) of 77 p.c of company automobiles – an vital normal for transparency. Plans are in place to achieve one hundred pc.
Suspicious transactions reporting (STRs) elevated 51 p.c year-on-year (1Q21 vs 1Q22) demonstrating larger AML/ CFT understanding by personal sector and monitoring by supervisory authorities.
16 authorities businesses and greater than 20 personal sector representatives have joined a Personal Public Partnership to reinforce effectiveness of AML/CFT regime and develop a laws for sharing data between private and non-private sectors.
There have been vital AML/CFT enforcement actions
Hamid Al Zaabi, Director Common, stated: “We’ve a transparent agenda for combating illicit finance and preserving the integrity of the worldwide monetary system. It’s anchored in embedding the institutional capabilities set out within the UAE’s Nationwide Danger Evaluation, Nationwide Motion Plan and Nationwide Technique for AML/CTF. We carried the optimistic progress of 2021 into the primary six months of this yr and we take encouragement from that.
”Our precedence stays to construct long-term, sustainable capabilities and to speed up the event of the UAE’s means to detect, examine and perceive cash laundering and terrorist financing as we advance monetary crime compliance frameworks within the UAE and world wide.”
Worldwide Cooperation
In September 2021 the UAE signed a landmark partnership with the UK to deal with illicit finance. This has facilitated new alternatives for cooperation, such because the train with the UK Nationwide Crime Company to fight the smuggling of serious volumes of money and gold from UK airports.
Through the course of 2022 common bilateral UAE-UK dialogues have been held to debate bettering data, monetary intelligence and facilitating motion in opposition to AML/CFT. Related occasions have been held with the European Union (EU) and the US. The UAE has additionally signed 5 new worldwide judicial cooperation agreements (ICJAs) with the US, Russia, Netherlands, Denmark, and Italy. Throughout a go to to the US in July 2022, the EO led a delegation from the UAE that met with Division of Treasury, personal sector entities and main think-tanks to debate areas of collaboration in combating cash laundering, terrorist financing and proliferation financing.
Reporting of suspicious transactions and monetary intelligence
The UAE Monetary Intelligence Unit (FIU) is the central company that works intently with related competent authorities to find out hyperlinks between attainable proceeds of crime, cash laundering or terrorist financing.
The variety of suspicious transaction (STR) studies obtained by the FIU elevated by 51 p.c year-on-year (1Q21 vs 1Q22) with the monetary sector contributing the overwhelming majority. This demonstrates the success of outreach and academic programmes designed to lift and deepen AML/ CFT consciousness.
The FIU was strengthened by a rise of over 85 p.c in human assets and the event and adoption of latest instruments, which raised the effectiveness of cash laundering investigations, together with for predicate offences and asset-tracing.
This builds on the investments in folks and expertise such because the Fawri Tick system, GoAML, Built-in Enquiries Administration System (IEMS) and the Nationwide Financial Registry (NER).
Efforts have additionally targeted on bettering designated non-financial companies and professions (DNFBPs) transaction-monitoring methods. Work has additionally been carried out to assist DNFBPs determine, assess and take efficient motion to mitigate their cash laundering, terrorist financing and proliferation financing dangers.
Focused Monetary Sanctions
Authorities within the UAE have efficiently carried out a variety of high-profile arrests in relation to monetary crime working in shut cooperation with companions in Europe, Africa and the US. As well as, thorough investigation has led to the proceeds of crime being recovered, or confiscated.
Equally, the swift implementation of focused monetary sanctions or freezing orders have additionally been used as key steps within the enforcement course of. The UAE is dedicated to going additional by incorporating related provisions to stop terrorist financing into the brand new legislation regulating charities.
Competent authorities have additionally elevated their understanding of focused monetary sanctions evasion typologies in each the private and non-private sectors. For instance, the Government Workplace for Management and Non-Proliferation has targeted on cash switch companies corresponding to hawala, imposing dissuasive measures on companies that fail to show AML/CFT compliance. Important fines have additionally been issued to some DNFBPs for breaching AML/CFT requirements.
The UAE has additionally addressed technical deficiencies pertaining to freezing obligations within the Native Listing, whereby companies are required to freeze property the place the UAE authorities impose a freezing order in relation to focused monetary sanctions for terrorist financing and proliferation. In June 2021, the UAE obtained an improve in relation to this Advice, R.6, from MENAFATF, for the measures taken to enhance the Native Listing system. The UAE has added 38 people and 15 entities to the Native Listing, whereas the UAE Cupboard authorised their inclusion within the nationwide terrorism record.
In March 2022 the UAE labored intently with worldwide counterparties on the twin itemizing of people belonging to a terrorist group. This led to the UAE’s legislation enforcement businesses taking motion to arrest the people, raid their workplaces and houses, and accumulate bodily and digital proof.
Embedding a risk-based supervision and enforcement
The UAE’s risk-based strategy (RBA) is central to the efficient implementation of the FATF suggestions. This consists of focused RBAs in excessive danger areas corresponding to sellers of valuable metals and stones. RBAs have enabled the competent authorities to focus on companies for inspections, encouraging remedial motion the place non-compliance is recognized.
Whole enforcement actions imposed by supervisory authorities throughout this era exceeded AED 42 million.
The UAE confiscated greater than AED 2.35 billion (US$640 million) in illicit property in 2021, of which AED 15 million (US$4 million) was in gold and valuable metals.
The UAE has had quite a few successes resulting in: the arrest of a European thief who had stolen AED 3 million (c. US$ 817,000); uncover of a fraudulent scheme in cryptocurrency buying and selling and cash laundering, resulting in arrests and prosecutions of the accused; and 40 folks jailed and fined AED 860 million for fraud and cash laundering., amongst many different vital arrests and worldwide circumstances such because the arrest of suspect Sanjay Shah, and with South African authorities to arrest the Gupta Brothers.