News and developments
UAE Strengthens Anti-Money Laundering Framework: Key Updates and Amendments
Federal Decree-Law No. 20/2018, which originally established the framework for combating money laundering, the financing of terrorism, and the financing of unlawful organisations, has been significantly amended by Federal Decree-Law No. 26/2021 and more recently by Federal Decree-Law No. 7/2024. These updates enhance financial security and align with international standards.
Key Developments in Anti-Money Laundering Legislation
Federal Decree-Law No. 20/2018 initially laid the foundation for the UAE's AML efforts. However, the complexity and evolving nature of financial crime necessitated further enhancements, leading to the introduction of Federal Decree-Law No. 26/2021. The latest update, Federal Decree-Law No. 7/2024, introduces critical changes that enhance the effectiveness of combating financial crime.
Key Amendments Under Federal Decree-Law No. 7/2024
- Formation of the National Committee
- Creation of the Supreme Committee
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- The Supreme Committee will study, monitor, and assess the effectiveness of strategies and procedures employed by the National Committee. It will provide recommendations and decisions to enhance the AML framework.
- It will determine the requirements that the National Committee and other concerned entities must meet, supervising their execution.
- The committee will coordinate with relevant entities, ensuring they provide necessary support to the National Committee.
- It will supervise the mutual evaluation process to measure the UAE's adherence to international AML standards.
- The committee will propose draft laws and amendments to existing legislation, submitting these proposals to the Cabinet.
- It will propose necessary financial allocations for federal entities involved in executing the national AML strategy.
- The Supreme Committee may assume other tasks as determined by the Cabinet.
- Establishment of the General Secretariat
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- The Chairman of the Supreme Committee will issue decisions to regulate the General Secretariat's structure, powers, and financial and administrative regulations. The Chairman of the National Committee may be authorized to issue some of these decisions.
- The Chairman of the National Committee has the authority to amend the General Secretariat's organizational structure below the level of departments.