Money laundering refers to the act of laundering money to make it appear as legal funds. Anti-money laundering specialists are indispensable in helping businesses manage AML compliance issues.
These professionals understand the legal requirements of AML and specific tactics that can be used to create compliance measures.
The anti-money laundering specialist certification is vital for the UAE business to prevent and report the occurrence of AML/CFT in its operations.
The United Arab Emirates (UAE) is an international business hub; therefore, it is in the spotlight of money laundering. Subsequently, the UAE has incorporated strict AML measures.
Also read: UAE AML Regulations
The following are recent measures effected to combat money laundering:
Recent efforts by the UAE to counter money laundering have led to significant increases in fines and asset confiscations. In the first quarter of 2023, fines exceeded AED 115 million, compared to AED 76 million in the previous year.
During this period, 161 fines were issued to 76 entities, and assets worth AED 925 million were frozen between November 2022 and February 2023.
The UAE’s growing economy necessitates robust AML/CFT measures across both public and private sectors. Increased enforcement and heightened awareness of financial crimes have resulted in a responsive system.
UAE law enforcement agencies have actively participated in international investigations and arrests, ranked 5th worldwide.
The Financial Intelligence Unit has received a substantial increase in suspicious transaction reports (STRs) and suspicious activity reports (SARs) from financial institutions and businesses.
Changes in anti-money laundering legislation, particularly concerning virtual assets, have also been implemented.
In the last year, the UAE was put on the Financial Action Task Force or the FATF ‘grey list,’ thereby inching up its efforts. The director general of the country’s Executive Office for AML/CFT, in cooperation with the FATF, discussed the key achievements.
The economy of the UAE has been improving; it is essential to instill proper implementation of AML/CFT procedures all over the UAE and in the private sphere.
The enforcement has also enhanced over the years, and the awareness of financial crimes has dawned, showing that there is a responsive system.
The UAE Central Bank and the Ministry of Economy have been involved in inspections and have been fining businesses this year to enforce AML policies. The UAE entered into MLATs and cooperated with other countries or jurisdictions to prevent and prosecute financial crimes.
November is set to witness the Association of Certified Anti-Money Laundering Specialists hosting a conference in Dubai, where regulators and professionals in the sector will share knowledge and practice as well as deliberate on proven strategies to contain financial criminals.
This process involves two stages:
Anti-money laundering specialists refer to experts who have the qualifications and expertise to ensure that organizations comply with the anti-money laundering legal requirements. Anti-money laundering specialists are professionals well-versed in the AML laws and regulations on the subject.
Farahat & Co.’s seasoned AML team comprises compliance advisors, business financial analysts, and consultants, among others, to provide quality solutions to AML services.
Money laundering is one of the processes of hiding and eliminating detectable links with the alleged criminal source of funds. It typically involves three stages: placement, layering, and integration.
Being a financial city, the UAE is prone to such malpractices as money laundering and financing of terrorism. This way, AML compliance contributes to the protection of the economy, compliance with the norms of the international financial system, and prevents the imposition of severe penalties.
Anti-money laundering specialists provide AML consulting services regarding documentation of AML/CFT policies, establishing an in-house compliance department, training in AML, and selection of software, together with risk assessments, reporting to the regulators, and more KYC/CDD services.
Proposing the VAT with the FATF, being on the grey list, proves the need for better AML measures. Entry into the UAE has put pressure to try to meet the standards of the global standard and enhance the nation’s AML/CFT model.
Anti-money laundering specialists advise companies on the selection of affordable and appropriate AML software for the monitoring of transactions, clients, and all other aspects of AML processes.
Outsourcing the management of KYC and CDD services significantly speeds up the process of customer identification and evaluation, which also helps to effectively carry out the AML regulation, and at the same time, it is cost-effective and efficient.
To protect the economy and maintain global competitiveness, businesses need to enforce effective measures against money laundering. Thus, it is advised for businesses to seek the expert services of trusted AML consultants in the UAE to effectively combat anti-money laundering and ensure compliance.
Also read: UAE AML/CTF Compliance
Farhat & Co. is a reputable AML specialist, committed to providing comprehensive AML consulting services, helping businesses prevent and mitigate the effects of financial crimes.