The Middle East and North Africa (MENA) region has seen a marked evolution in anti-money laundering (AML) regulations, with countries adopting more robust risk-based frameworks and technology-driven monitoring.
The Financial Action Task Force (FATF) has recognised this progress, particularly in areas such as beneficial ownership transparency and enhanced enforcement measures, claims Workfusion.
Among its regional peers, the United Arab Emirates (UAE) has been particularly swift in updating its financial crime compliance regime. Over the past two years, the country has launched a number of initiatives designed to modernise its approach and align with international standards.
Following the approval of a national AML/CFT strategy in September 2023, covering the years 2024 to 2027, the UAE has prioritised combating cybercrime, digital payments risks, and trade-based money laundering. This framework was developed with insights from the World Bank Group and followed FATF’s decision to remove the UAE from its Grey List. The FATF remarked, “The FATF welcomes the UAE’s significant progress in improving its AML/CFT regime. The UAE strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2022.”
Further steps included the December 2024 launch of the National AML/CFT Committee General Secretariat, set up to improve regulatory alignment and ensure international compliance standards are upheld. Enforcement actions have also become more stringent, with the Central Bank of the UAE (CBUAE) imposing multi-million-dirham fines on financial institutions for failing to comply.
Unlike some jurisdictions, the UAE does not have a single body that oversees AML/CFT enforcement. Instead, it relies on coordination across multiple regulators. The CBUAE supervises banks and financial institutions, while the Ministry of Economy (MOE) monitors designated non-financial businesses and professions such as real estate agents and precious metals dealers. The Securities and Commodities Authority (SCA) oversees securities firms, while the Financial Intelligence Unit (FIU) handles suspicious transaction reports. Local authorities such as Dubai Police, Abu Dhabi Police, and Sharjah regulators also play a role in enforcement, particularly in trade-heavy industries.
As the FinTech and crypto sectors grow, regulators have expanded oversight to ensure compliance. The Virtual Asset Regulatory Authority (VARA) and the SCA have harmonised rules for virtual asset service providers, requiring them to conduct robust KYC, monitor cross-border transfers, and use blockchain forensics to identify illicit activity.
The UAE’s financial free zones also maintain their own frameworks. The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have developed AML rules that dovetail with federal regulation. Within these, the Dubai Financial Services Authority (DFSA) mandates customer due diligence without thresholds, while the ADGM’s Financial Services Regulatory Authority (FSRA) uses a tiered CDD system with particular emphasis on crypto oversight. Both require enhanced scrutiny of politically exposed persons and immediate reporting of suspicious transactions.
With stricter rules comes a higher cost of non-compliance. Penalties now include prison sentences of five to ten years, corporate fines of up to AED 50m, and revocation of licences. Businesses that fail to file suspicious transaction reports or carry out due diligence risk fines ranging from AED 10,000 to AED 1m, with individuals also facing jail terms of up to six months. Recent cases include fines of AED 3m against a UAE bank and AED 5.9m against a foreign bank branch, alongside licence revocations in the precious metals sector.
To help firms navigate these challenges, technology providers are stepping in with automated solutions. WorkFusion, a leader in AI-driven compliance, has developed a suite of AI Agents designed to address specific AML requirements in the UAE and beyond. These include Edward, which handles enhanced due diligence; Isaac, which automates transaction monitoring; Kayla, which manages ongoing KYC; Evelyn, which reviews PEP and sanctions alerts; Evan, which sifts adverse media for potential risks; and Tara, which processes sanction screening alerts. Together, these tools aim to reduce manual effort, increase accuracy, and ensure businesses remain compliant in a rapidly tightening regulatory environment.
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