The United Arab Emirates (UAE) is taking a proactive stance against financial crime by partnering with the World Bank to conduct a comprehensive National Risk Assessment (NRA) for money laundering and terrorist financing (ML/TF). This collaborative effort, spearheaded by the Executive Office of Anti-Money Laundering and Counter Terrorism Financing (EO AML/CFT), aims to identify and evaluate the nation's vulnerabilities to these illicit activities.
The workshops, held throughout November 2022, brought together over 80 participants from various government ministries, regulatory authorities, law enforcement agencies, and financial institutions. Divided into working groups, they delved into specific areas like Money Laundering and Terrorist Financing Threat Assessment, National Vulnerability Analysis, and Risk Assessments for Legal Persons, Financial Institutions, and Non-Profit Organizations.
This initiative marks a significant step forward for the UAE's ongoing commitment to combating financial crime. By employing the World Bank's NRA toolkit, a methodology utilized by over 100 jurisdictions globally, the UAE leverages a well-established framework to identify and understand its unique risk profile.
"The UAE acknowledges the paramount importance of assessing ML/TF risks to combat financial crime and strengthen our national system," emphasized Hamid Al Zaabi, Director General of EO AML/CFT. "National strategies and policy decisions must be supported by comprehensive risk assessments, providing a foundation for the effective implementation of FATF Recommendations," he added, referring to the Financial Action Task Force, the global standard-setter for AML/CFT policies.
The workshops served as a crucial platform for knowledge sharing and fostering collaboration between various stakeholders. Participants actively discussed potential vulnerabilities within the UAE's financial system, analyzing trends and typologies associated with ML/TF activities. This collective effort strengthens the country's ability to detect, prevent, and disrupt financial crimes.
The UAE's commitment to a robust AML/CFT regime extends beyond these workshops. The EO AML/CFT actively engages with public and private sector entities through outreach programs and training initiatives. This multi-pronged approach ensures a comprehensive understanding of ML/TF risks across different sectors, empowering stakeholders to play a vital role in safeguarding the financial system.
The collaboration with the World Bank on the National Risk Assessment is a testament to the UAE's unwavering dedication to building a secure and transparent financial environment. The insights gleaned from this process will serve as a cornerstone for developing targeted policies and strengthening existing frameworks to effectively combat money laundering and terrorist financing.