Lawyers and government officials in the United Arab Emirates (UAE) are emphasizing the importance for companies and individuals to adhere to UAE’s money laundering and terror financing (AML/CFT) laws, otherwise, they could save up to Dh 5 million fine or even life imprisonment, as stated by Alexander Kukuev, manager partner and advocate at Uppercase Legal Advisory.
Entities failing to adhere to AMLCFT regulations have already faced penalties from the UAE Central Bank and other authorities. The stringent measures align with the UAE’s commitment to the Financial Action Task Force (FATF), a global financial crime watchdog, resulting in enhanced regulations as part of FATF membership.
UAE’s intensified efforts against AMLCFT are poised to see the country exit the FATF’s grey list next year. Uppercase’s managing partner anticipates increased governmental focus on AML compliance, particularly as the UAE aims for full FATF rule adherence.
Highlighting the significance, Kukuev stated, “Big firms and SMEs will have to think about it as the number one issue when they start their businesses.” The scrutiny extends to free zones, where companies renewing licenses will face checks for compliance.
Uppercase Legal Advisory, specializing in AML, FATF compliance, combating the financing of terrorism (CFT) compliance, mergers and acquisitions (M&A), and trade law, emphasizes the UAE’s global alignment in combatting financial crimes. Kukuev asserts that the UAE is emerging as a leader in the Middle East and North Africa (MENA) region against such illicit practices.
Despite progress, challenges persist, especially among small and medium enterprises (SMEs) unaware of AMLCFT laws. Kukuev urges corporations to prioritize AML proceedings, Know Your Customer (KYC), and AML as top priorities.
Abdulla Baqer, regional director of Dubai Chamber, underscores the role of educating foreign and local companies about local laws and policies to ensure business compliance in a dynamic trade environment.
