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FATF Adds United Arab Emirates to ‘Increased Monitoring’ List

15 March 2022

Further to the FATF’s decision to add the United Arab Emirates to the increased monitoring list, the UAE made a high-level political commitment to work with the FATF and MENAFATF to strengthen the effectiveness of its AML/CFT regime.

Since the adoption of its MER in February 2020, the UAE has made significant progress in implementing its MER’s recommended actions to improve its system by finalising a TF Risk Assessment, creating an AML/CFT coordination committee, establishing an effective system to implement targeted financial sanctions without delay, and significantly improving its ability to confiscate criminal proceeds and engage in international cooperation. Additionally, the UAE addressed or largely addressed more than half of the key recommended actions from the MER.

The UAE will work to implement its FATF action plan by:

  1. demonstrating a sustained increase in outbound MLA requests through case studies and statistics to aid in the investigation of TF, ML, and high-risk predicates
  2. identifying and maintaining a shared understanding of ML/TF risks among the various DNFBP sectors and institutions
  3. showing an increase in the number of STRs filed by FIs and DNFBPs
  4. achieving a more granular understanding of the risk of abuse of legal persons and, where applicable, legal arrangements, for ML/TF
  5. providing additional resources to the FIU in order to strengthen its analysis function and improve the use of financial intelligence in pursuing high-risk ML threats such as proceeds of foreign predicate offenses, trade-based ML, and third-party laundering.
  6. demonstrating a sustained increase in effective investigations and prosecutions of different types of ML cases consistent with UAE’s risk profile
  7. proactively identifying and combating sanctions evasion by using detailed TFS guidance in sustained awareness-raising with the private sector, as well as demonstrating a better understanding of sanctions evasion among the private sector

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