Money laundering is the practice of making money that was gained through criminal means, such as smuggling weapons, look as if it came from a legitimate business activity.

1. Grey List/Anti Money
Laundering Issues In UAE

2. Money Laundering
Money laundering is the practice of making money that was
gained through criminal means, such as smuggling weapons, look
as if it came from a legitimate business activity.
• Money laundering is the illegal process of making “dirty” money
appear legitimate instead of ill-gotten.
• Criminals use a wide variety of money-laundering techniques to
make illegally obtained funds appear clean.
• Online banking and crypto currencies have made it easier for
criminals to transfer and withdraw money without detection.
• The prevention of money laundering has become an
international effort and now includes terrorist funding among
its targets.

3. Stages of Money Laundering

4. Financial Action Task Force
The Financial Action Task Force, also known by its French name,
Groupe d'action financière, is an intergovernmental organization
founded in 1989 on the initiative of the G7 to develop policies to
combat money laundering. In 2001, its mandate was expanded to
include terrorism financing.
Note: G7 - The Group of Seven is an inter-governmental political
forum consisting of Canada, France, Germany, Italy, Japan, the
United Kingdom, and the United States.

5. Grey List of Financial Action Task
Force (FATF)
When the FATF places a jurisdiction under increased monitoring, it
means the country has committed to resolve swiftly the identified
strategic deficiencies within agreed timeframes and is subject to
increased monitoring. This list is often externally referred to as the
“grey list”.
The United Arab Emirates is at risk of being placed on the EU's
Financial Action Task Force (FATF) "grey list" of countries over anti-
money laundering and terrorist financing failings, according to a
report by Bloomberg News.

6. Anti Money Laundering at a Glance
Anti-money laundering (AML) refers to the laws, regulations, and
procedures intended to prevent criminals from disguising illegally
obtained funds as legitimate income.
• Anti Money Laundering (AML) seeks to deter criminals by
making it harder for them to hide ill-gotten money.
• Criminals use money laundering to conceal their crimes and the
money derived from them.
• AML regulations require financial institutions to monitor
customers' transactions and report on suspicious financial
activity.

7. Anti Money Laundering (AML) in
the United Arab Emirates (UAE)
• The UAE submitted a reportto the FATF in Novemberbut hasn’t
reached many of the thresholds needed to stay off the gray list,
the people said. The group is expected to make a decision at a
plenary meeting set for late February. There are stillseveral
opportunities for Emiratiofficials to make theircase to the FATF,
including during a planned trip to Paris in the coming weeks, they
said.
• “We are taking this very seriously, having partnered with highly
skilled and experienced specialists with a track-record in meeting
best international practices and standards,” Hamid Al Zaabi,
director general of the UAE Executive Office for Anti-Money
Laundering and Counter-TerroristFinancing, said in a statement
to Bloomberg News.

8. AML Law in UAE
Federal Decree No. 20 of 2018 on Anti-Money
Laundering and Countering the Financing of
Terrorism was issued to develop the legislative
and legal structure of the nation to ensure
compliance with international standards on anti-
money laundering and countering the financing
of terrorism.

9. Anti-Money Laundering
Supervision by the CBUAE
The CentralBank of the United Arab Emirates (CBUAE) established
a dedicated departmentin August 2020 to handle all Anti-Money
Laundering and Combating the Financing of Terrorism matters
(AML/CFT), which the Banking Supervision Department handled
previously.
The Anti-Money Laundering and Combating the Financing of
Terrorism Supervision Department(AMLD) serves three key
objectives:
• examining Licensed Financial Institutions (LFIs);
• ensuring adherence to the UAE’s AML/CFT legal and regulatory
framework, and
• identifying threats, vulnerabilities and emerging risks to the UAE's
financial sector

10. Applicability of AML Regulation on
UAE Businesses

11. Key Focus Areas for AML
Compliance Regulations

12. Key Components of Compliance
Framework

13. Punishment for Money
Laundering in UAE
Any person who commits, or attempts to commit, a Money
Laundering offence shall be punished by imprisonment of up to
ten years and / or a fine of between AED 100,000 and AED 500,000

14. UAE steps up anti-dirty money
measures to avoid global watch
list
• In 2020, the FATF said the UAE’s limited number of money
laundering prosecutions, especially in Dubai, were a “concern”
and urged the country to strengthen its anti-money laundering
measures.
• In an effort to avoid the grey list, the task force had since created
a register of corporate beneficial ownership that can supply
requested information to international counterparties in just
three days, Al Sayegh said.
• The UAE has also signed extradition treaty agreements with
33 countries including the UK, India and China. Sectors prone
to financial abuse, such as real estate, have also been
brought under the umbrella of the federally managed anti-
money laundering reporting system.
• In one recent example of enhanced international co-
operation, Hamid Al Zaabi, head of the UAE’s recently formed
Executive Office to Combat Money Laundering and Terrorist
Financing.

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