The UAE’s Executive Office to Combat Money Laundering and Terrorist Financing has said that $1.048 billion anti-money laundering and terrorist financing penalties have been collected in 2021.
The penalties comprised asset seizures worth $625 million, fines for non-compliance to anti-money laundering and terrorism financing regulations worth $64 million, penalties on major financial institutions in the UAE worth $5.3 million, tax evasion and money laundering fines on individuals worth $10.8 million, confiscations valued at $109 million, preventive measures to address terrorist financing and collective actions amounting to $234 million.
Hamid Al Zaabi, Director-General of the UAE Executive Office for Anti-Money Laundering and Counter-Terrorist Financing, said that these figures underscored the significant progress made by the country in addressing anti-money laundering and terrorism financing.
“On the legislative front, several major legal amendments were recently adopted, including the anti-money laundering law that includes wider powers related to confiscations, as well as controlling virtual assets,” Al Zaabi said.
In February 2021, the UAE established the Office for Anti-Money Laundering and Counter-Terrorist Financing to coordinate relevant national efforts in the areas of sectoral and objective risks, under the framework of a national risk assessment.
The Office carried out 5,529 desk inspections, including substantive reviews using a wide range of industry sector data on Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) and collected through supervisory assessments, forms and follow-up visits.
As of 2021, the number of double taxation agreements has reached some 137.
Concerning the handling of virtual assets, Al Zaabi said, “Modern financial tools and financial innovation or financial technology are among the promising sectors that are exposed to the risks of money laundering and terrorist financing. Therefore, we are working to adopt a balanced strategy to ensure the growth of these sectors, to serve the national economy while ensuring that these risks are mitigated so they cannot be sources of threat and mechanisms for money laundering and terrorist financing.”
