UAE imposes Dh65.9 million fines on 137 firms for not following anti-money laundering rules

In the first quarter of 2023, the Ministry of Economy imposed fines worth Dh65.9 million on 137 companies operating in the UAE's designated non-financial business or professions (DNFBP) sector, following an inspection of 840 companies for failing to comply with the anti-money laundering and combating the financing of terrorism (AML/CFT) legislation.

The initiative falls in line with the Ministry's efforts to ensure the sector's full compliance with the provisions stipulated by Federal Decree-Law No. 20 of 2018 on anti-money laundering and combating the financing of terrorism and illegal organisations and its executive regulations and related laws. Adherence to the law is necessary to ensure the country's full compliance with the international standards issued by the Financial Action Task Force (FATF).

The Ministry of Economy conducted inspection tours to monitor the operations of designated non-financial business or professions (DNFBP) sector companies that are subject to its supervision, which include real estate agents and brokers; precious metals and gemstone dealers; auditors; and corporate service providers.

The Ministry of Economy revealed that a total of 831 violations committed by violators were found, including failure to adopt necessary measures and procedures to identify the risks of crime in their field of work. These companies failed to establish internal policies and procedures to check customer databases and transactions against names mentioned on the terrorism list, which was issued under the provisions of Cabinet Resolution No. 74 for 2020 on the UAE's list of terrorists.

Abdullah Sultan Al Fan Al Shamsi, Assistant Under-Secretary of the Ministry of Economy for the Control and Follow-up Sector and chairman of the committee for the imposition of fines on violators, said, "The imposition of fines on violators is in line with the Ministry of Economy's strategies and efforts as the authority responsible for the supervision of the DNFBP sector and ensuring its full compliance with the legislation."