Dubai, UAE
For centuries, since the days of the Silk Road, the land now known as the United Arab Emirates (UAE) has been actively engaged in global trade. This rich history of international exchange is evident in today’s UAE economy, which ranks 16th globally in the World Bank’s ease of doing business index out of 190 countries.
However, the UAE’s ambition is to claim the number one spot on the global stage. To achieve this, the country has implemented a series of reforms aimed at attracting foreign investment, creating new jobs, and diversifying its economy away from oil dependency.
While significant progress is already visible, with the UAE hosting two top-30 international financial centers, rapid globalization comes with challenges—such as the growing threat of financial crime, fraud, money laundering, and corruption.
Dubai, UAE, FinancialCombating Illicit Finance
The UAE economy, like all global financial hubs, must safeguard its systems from these threats to maintain its reputation and the integrity of its financial sector. As technology evolves, so do the opportunities for criminal activities. The United Nations estimates that 2-5% of global GDP—or $800 billion to $2 trillion—is laundered globally each year. Though the UAE represents only a small portion of this figure, addressing the problem is crucial to maintaining the country’s position as a world-leading financial center.
This is why I lead the Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT). Our objective is simple: to enhance the UAE’s effectiveness in combatting financial crime.
Five Core Principles for Financial Security
To address this, we operate around five clear principles:
- Public-Private Collaboration: Combating financial crime requires a close partnership between government bodies, financial institutions, and law enforcement agencies. By sharing information across sectors, we break down silos and foster greater transparency and collaboration.
- Shared Goals Across Sectors: Preventing and detecting illicit financial activities requires joint efforts from all stakeholders. Financial institutions, armed with transaction data, collaborate with government agencies that hold intelligence on illicit actors. This partnership is essential to detect patterns and prevent crime.
- Utilizing Advanced Technology: We are leveraging advanced analytics, technology, and real-time investigations to sharpen our collective defenses. Through public-private partnerships, we can spot emerging trends and take swift action against financial crime.
- Collaborating Internationally: The UAE is working with international partners to strengthen efforts globally. In September 2021, the UAE signed a groundbreaking partnership with the UK to tackle illicit financial flows, which has already resulted in joint operations and successes.
- Investing in Financial Crime Capabilities: We regularly conduct economy-wide risk assessments and have significantly increased investments in the UAE’s financial crime capabilities. Sectors like gold trading and real estate are now closely monitored, with reporting systems in place to track suspicious activities.
UAE’s Financial Crime Progress
The UAE has also increased the staffing levels of its Financial Intelligence Unit, which assesses suspicious activity reports and launches investigations. From 2019 to 2021, the country achieved a 94% conviction rate across 243 money laundering cases. Furthermore, the UAE Central Bank, the Ministry of Justice, and the Ministry of Economy have announced renewed AML/CFT guidelines. Specialized money laundering courts in Abu Dhabi and Dubai are now actively tightening enforcement within the country’s largest business hubs.
Achieving Economic Resilience
As we continue our disciplined approach to preventing illicit financial flows, the UAE is making strong progress in its journey toward becoming one of the world’s most respected and robust economies. By focusing on strengthening our financial system, enhancing transparency, and leveraging global partnerships, we aim to not only combat financial crime but also realize our economic ambitions on the global stage.
