UAE Central Bank Issues New AML Rules to Fight Crime

The Central Bank of the United Arab Emirates (CBUAE) has introduced a comprehensive set of updated guidelines aimed at strengthening the country’s framework for Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF).

These new measures align with global best practices and reinforce the UAE’s commitment to protecting its financial system from both domestic and international financial crimes.

Strengthening Financial Integrity

The updated regulatory package is part of the UAE’s National Strategy (2024–2027) and is aligned with international standards set by the Financial Action Task Force (FATF). It aims to enhance compliance systems across Licensed Financial Institutions (LFIs) and Registered Hawala Providers (RHPs), enabling them to better identify, assess, and mitigate financial crime risks.

By introducing proactive monitoring tools and clearer compliance expectations, the initiative supports the UAE’s position as a secure and trusted global financial hub.

Four Key Regulatory Guidelines

The CBUAE has issued four major guidance documents covering critical risk areas:

1. Proliferation Financing Risks (PF):
This guidance focuses on improving the financial sector’s ability to detect and prevent proliferation financing. It emphasizes risk assessment, evaluation of internal controls, and continuous monitoring of emerging threats and trends.

2. Trade-Based Money Laundering (TBML):
Institutions are guided on identifying risks linked to trade and transshipment activities. The framework enhances readiness to detect suspicious trade patterns and ensures compliance with UAE regulations.

3. Correspondent Banking Risks:
The guidance outlines how financial institutions should manage risks associated with correspondent banking relationships, including developing robust internal policies aligned with regulatory expectations.

4. Customer Due Diligence (CDD) & KYC:
Clear instructions are provided on verifying customer identities, assessing risk profiles, and maintaining accurate records. It also defines simplified and enhanced due diligence procedures.

Focus on Risk-Based Approach and Training

In addition to regulatory guidance, the CBUAE released two best-practice manuals:

• Risk-Based Approach: Helps institutions design effective risk assessment frameworks and apply proportionate countermeasures.

• Role-Based Training: Encourages specialized training programs for employees and management to improve early detection of suspicious activities.

Leadership Statement

CBUAE Governor Khaled Mohamed Balama reaffirmed the central bank’s commitment to global standards, stating that the new guidelines will enhance awareness, strengthen compliance, and improve the financial sector’s ability to combat evolving risks.

He emphasized that these efforts are part of a broader strategy to build a resilient financial system and contribute to global financial stability.