The UAE’s removal from the Financial Action Task Force grey list last week was a major win but the main target is to “meet the goals of the country, not that of FATF”, according to the official leading the nation's fight against illicit transactions.
The aim is to continue improving the effectiveness of the UAE’s approach and framework, in line with international best practice, Hamid Al Zaabi, director general at the Executive Office of Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT), told The National in an exclusive interview.
“The UAE successfully confiscated over Dh5.4 billion [$1.4 billion] from December 2021 to June 2023, primarily from cases related to professional and trade-based money laundering,” he said.
Mr Al Zaabi, who has more than 20 years of experience, is the first port of call for the FATF to learn about the progress of the UAE’s efforts to combat financial crimes, according to the executive office, which was founded in February 2021.
He said Arab countries had specific conditions to address with regards to financial crimes and the focus of his office was learning and coming up with the action plan to combat these illicit activities.
In the grey
In March 2022, the UAE was added to the grey list by the FATF, the world’s watchdog for anti-money laundering and financial terrorism, which was founded in 1989 by the Group of Seven, an intergovernmental agency of predominantly wealthy western nations whose core members include Canada, France, Germany, Italy, the UK, the US and Japan.
The FATF had identified risks of money laundering and terrorist financing from industries connected to banking, diamond and gold trade, and real estate.
Although the UAE has an increasingly regulated economy, the level of compliance with AML and know-your-customer requirements in some sectors is perceived to be inconsistent, stated the International Fraud & Asset Tracing 2023 report by London-based research firm Chambers and Partners.
Since the establishment of the executive office, Mr Al Zaabi said his team of about 60 have tirelessly worked with more than 90 national stakeholders, private sector companies and global institutions such as the World Bank and International Monetary Fund, to ensure compliance with international standards and to enforce the National AML/CFT Action Plan.
“There wasn’t much communication between the different organisations beforehand,” he said, adding that success in combating crimes depended on the extensive co-operation with different entities to ensure that regulations are enacted.
His office developed tools such as FawriTick, an automated intelligence platform that integrates details of financial crimes with a number of local and federal authorities to streamline decision-making.
There is also a reporting platform that sits within the National Statistics Centre for AML/CFT and was specifically designed to address the UAE’s needs.
The result is that the UAE has been able to more effectively monitor and exercise its regulations, Mr Al Zaabi explained.
The Gulf state has issued fines of more than Dh115 million for money laundering, conducted more than 8,000 inspections with the UAE Ministry of Economy and has seized Dh925 million in breaches of AML practices and procedures to date, according to the executive office.
Globally, the UAE signed anti-financial crime preliminary agreements with Egypt, Morocco, Serbia and Kazakhstan by the end of 2023.
The UAE also previously ratified extradition treaties with South Africa and Denmark. Both were intended to secure the return of high-profile people accused of significant financial crimes.
Stronger forward
The UAE’s removal from the FATF’s grey list last week made “no difference” to the country’s economic well-being, said Mr Al Zaabi, yet it does strengthen the country’s position moving forward.
Due to the modified status, the UAE is set to fortify its global position with easier access to financial markets and trade opportunities, he said.
It also permits international banking transaction costs to be cheaper, in addition to the UAE receiving increased co-operation and assistance from international bodies and foreign governments due to its compliance with international standards.
“Entering the green zone helps to increase the confidence of foreign countries,” Mr Al Zaabi told The National, although the UAE has no issues drawing foreign direct investment, he added.
By the end of 2023, the Emirates had the second-highest value of greenfield investments, or FDI where a parent company establishes a subsidiary in a different country, according to the Global Investment Trends Monitor report released in January by the UN Conference on Trade and Development.
Only the US was ahead of the UAE, the Unctad report said. It did not provide the total values of the investments per country.
Lewis Allsopp, chairman of Dubai-based real estate agency Allsopp and Allsopp, said that previously restricted large institutional funds would likely enter the Dubai property market as a result of the country’s emergence into the FATF's green status.
“I am confident that Dubai’s real estate market is set to benefit the most from this news,” said Mr Allsopp.
When asked about what was next after being delisted from FATF’s grey list, Mr Al Zaabi said, “more work”.
“We have a very busy year ahead. Financial criminals are continually evolving their tactics and looking for gaps between national systems,” he said, citing the UAE’s National Risk Assessment plan, which should be completed by the end of 2024.
This is especially true with the emergence of the ever-changing and high-risk cryptocurrency market, which the UAE is one of the first to regulate but not shy away from, said Mr Al Zaabi.
With a strong regulatory framework and a business environment conducive to innovation, the UAE will continue to be an attractive jurisdiction for virtual asset service providers, he added.
“We can’t hold it back, this is the future.”
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
How to help
Call the hotline on 0502955999 or send "thenational" to the following numbers:
2289 - Dh10
2252 - Dh50
6025 - Dh20
6027 - Dh100
6026 - Dh200
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
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Engine: Dual synchronous electric motors
Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
Touring range: 591km
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On sale: Deliveries start in October
