The UAE Central Bank (CBUAE) has urged regional banks to step up their anti-money laundering efforts to protect the country’s financial stability.
Bank said in a statement, “To mitigate the risk of financial crimes … banks are urged to put more efforts towards combating money laundering and financing of terrorism”.
The bank stated that more than 300,000 people, nearly 10,000 small and medium-sized firms, and close to 1,500 private businesses had profited from a liquidity project of $14 billion (50 billion dirhams) launched to mitigate the consequences of the COVID-19 pandemic.
The central bank reportedly said that the UAE economy would likely shrink by 5.2 percent this year, revising a previous reduction estimate of 3.6 percent, as virus control measures affected sectors such as trade and tourism.
“The decline in output is because of the disruptions in the supply chain, limited export opportunities and declining domestic demand,” the bank said.
The UAE issued Federal Decree-Law No 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations on October 30, 2018 (the ‘AML Law’). The AML Law introduced some FATF-recommended concepts designed to enhance the efficiency of the UAE in recognizing and blocking attempts at money laundering and funding terror.
Recently, the National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organisations has announced the launching of ‘Fawri Tick’, to coordinate the AML and Countering Terrorist Financing (CFT).
‘Fawri Tick’ integrates and aggregates the numerous cases of AML and CFT over the federal and local authorities and provides appropriate communications within a short time to take and execute the required actions and decisions for cases.