In a major move to mitigate financial crimes, the Securities and Commodities Authority (SCA) has taken stringent measures against several companies for violating regulations and non-compliance with anti-money laundering and counter-terrorism financing (AML/CFT) rules. It has imposed a fine of Dh1.15 million against several companies for violating anti-money laundering (AML) and counter-terrorism financing (CTF) laws. This action highlights the UAE’s dedication and commitment to maintaining the integrity of its financial system and aligning with international standards.
Bolstering the Legal Framework
The UAE has been proactive in maintaining its legal and regulatory infrastructure to deter financial misconduct. The cornerstone of this effort is Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations. This law delineates the responsibilities of financial institutions and designated non-financial businesses and professions (DNFBPs) in implementing strict and stringent AML and CTF measures. The legislation accentuates that money laundering is an independent offense, distinct from the predicate crime, ensuring that perpetrators face penalties irrespective of the original offense.
Enforcement and Overview
In the case of the Dh1.15 million fine, while specific details about the company’s identity and the nature of its violations remain confidential, such penalties reflect the UAE’s robust stance against financial infractions.
These actions are coupled with legislative amendments aimed at enhancing the effectiveness of the AML/CFT framework. In August 2024, the UAE introduced a new Federal Decree-Law amending provisions of the existing law on anti-money laundering, establishing two new committees: the National Committee for Anti-Money Laundering and Combatting the Financing of Terrorism and Financing of Illegal Organizations, and the Supreme Committee for the Oversight of the National Strategy for Anti-Money Laundering and Counter-Terrorism Financing. These bodies are tasked with developing and implementing comprehensive strategies.
The SCA implements a world-class regulatory framework on companies operating in the financial markets in the UAE. The imposition of a Dh1.15 million fine for AML and CTF violations establishes and exemplifies the UAE’s steadfast dedication to upholding the integrity of its financial system. Through robust regulations, vigilant enforcement, and continuous legislative enhancements, the UAE strives to help grow a secure and transparent business environment, deterring financial crimes and reinforcing its position as a global financial hub.
