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UAE expected to exit FATF grey list at the next evaluation

UAE Central Bank has been taking a number of initiatives

Mohamed Al Ansari, chairman of the Foreign Exchange and Remittances Group (FERG), expects the UAE will come out of the Financial Action Task Force (FATF) grey list at the next review.

In March 2022, the country was added to the grey list.

The UAE has committed to implementing the recommendations of the International Cooperation Review Group’s (ICRG) Action Plan to remove itself from the grey list swiftly.

The UAE Central Bank has been taking a number of initiatives against companies for violating anti-money laundering (AML) regulations. It also penalised many exchange houses and banks for not adhering to the regulations.

Earlier this week, the Central Bank imposed administrative sanctions on eight banks for the banks’ failures to comply with the its instructions not to grant any loans or credit facilities to the beneficiaries of loans granted by the Nationals Defaulted Debts Settlement Fund (NDDSF).

“Following the measures that have been implemented in the financial system, my expectation is that the UAE will be removed from the (FATF) grey list in the next evaluation,” said Al Ansari.

“The Central Bank has been more strict in recent years. The message to the financial sector is that regulators are serious. They will not tolerate any loophole in the system in a free economy like the UAE with the robust cash flow in and out of the country, and will implement strict regulations,” he told Khaleej Times on the sidelines of the 11th Annual Financial Crime Summit on Thursday.

According to a note issued by FTI Consulting, over $4 million (Dh14.7 million) in financial crime-related fines were issued in the UAE in 2022 for failure to comply with anti-money laundering (AML) laws and regulations.

Al Ansari said FERG meets Central Bank regularly to discuss issues and challenges.

Rajiv Raipancholia, secretary, FERG, said the Central Bank has been taking a number of great initiatives to guide the financial institutions in the country.

The panel discussions and presentations during the 11th Annual Financial Crime Summit highlighted pressing industry priorities, challenges faced by law enforcement agencies worldwide and utilizing emerging technologies to combat financial crime. Key topics covered included anti-money laundering (AML), fraud prevention, compliance culture, the UAE's regulatory landscape for financial institutions, and innovative fintech business models for exchange houses.

Industry executives discussed pressing industry priorities, challenges faced by law enforcement agencies worldwide and utilizing emerging technologies to combat financial crime. Key topics covered included anti-money laundering (AML), fraud prevention, compliance culture, the UAE's regulatory landscape for financial institutions, and innovative fintech business models for exchange houses.