The Eau Ministry of Economy signed a series of comprehension memoranda (MOU) with key national authorities, including the Dubai Economic Security Center (ESCD) and the Dubai land department (DLD), to strengthen efforts to combat money laundering and terrorism. This initiative announced that the “Paper of the designated business sector and non -financial professions (DNFBPS) in the combination of financial crimes” Summit in Dubai aims to improve the regulatory framework of the EAU, improve transparency and align with the international standards established by the Financial Action Task Force (FATF). The agreements mark a significant step to fose the institutional integration, the exchange of data and the development of capacities to counteract effective financial crimes.
The MOU are designed to reinforce the anti-launch of money (AML) and anti-terrorism financing of the EAU (CFT) by establishing clear mechanisms for cooperation. According to the Ministry of Economy, these agreements will improve regulatory infrastructure by improving the supervision of the DNFBP sector, which includes real estate agents, lawyers, counters and non -financial professionals of EATHER vulnerable to money washing machines. The facilitation of the agreements ensures data and exchange of information, ensuring compliance with national legislation and international best practices. They also support the role of supervision of the ministries under the Federal Decree Law No. 20 of 2018 on money laundering and combating terrorism financing and illegal organizations.
Abdullah Bin Touq to Marri, Minister of Economy, emphasized the importance of these associations, declaring, “These mous reflect our commitment to improve the integrity and transparency of our financial systems, aligning with global standards to combat financial crimes.” The agreements also aim to improve monitoring and compliance systems, ensuring that entities adhere to AML/CFT regulations, according to the Middle East economy.
At the signature ceremony, held outside the Dubai Summit, prominent officials attended, including Abdullah Bin Touq to Marri, Minister of Economy; Abdullah Bin Sultan Bin Awad Al Nuaimi, Minister or Justice; and Ahmed al Sayegh, Minister of State. The Mous were signed by Abdullah Ahmed al Saleh, Undersecretary of the Ministry of Economy; Safeya Hashem Al Safi, Assistant Secretary of the Control and Commercial Governance sector; Faisal Yousef Bin Selaitin, CEO of the Dubai Economic Security Center; And Majid Saqr al Marri, CEO of the Real Estate Registry sector in the Dubai Land Department.
These signatories represent a collaboration effort between federal entities and based in Dubai to address the financial crime. The participation of ESCD and DLD highlights Dubai’s critical role as a global financial center, where real estate and commercial transactions are shortly susceptible to illegal financial activities.
MOUS OBJECTIVES
The MOU sets frames for technical cooperation, capacities development and knowledge exchange. The key objectives include:
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Improved data exchange: The agreements allow safe and confidential mechanisms to share data to improve the detection and prevention of financial crimes. This is particularly crucial to trace illicit funds in sectors such as real estate, which has been a historical objective for money laundering.
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Capacity creation: MOU is promoting training and technical assistance to strengthen the capacities of regulatory bodies and private sector entities to identify and inform suspicious activities.
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Alignment with Fatf standards: The EAU are committed to the FATF standards of complete comparison, and these agreements support the efforts to get out of the “gray list” of Fatf, where the EAUs were placed in March 2022 due to deficiencies in AML/CFT measures. The MOU are part of a broader strategy to demonstrate the progress in the address of these groups.
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Institutional integration: By promoting associations between the Ministry of Economy, ESCD, DLD and other entities, the agreements aim to create a unified approach to combat financial crimes, reducing regulatory gaps.
Context and challenges
The Eau efforts occur in the middle of the successful scrutiny of their financial systems. In 2022, Fatf placed the EAU on its gray list, citing deficiencies to combat money laundering and terrorism finances. While the designation does not have a significant impacted business, it has raised reputation risks and potential challenges for long -term credit qualifications. Since then, the EAU have implemented significant reforms, including the establishment of the AML/CFT Executive Office in 2021 and the approval of multiple laws to strengthen supervision.
However, they are still challenges. A POLITICAL 2023 REPORT Outstanding Conns of some FATF officials that the EAU had not fully approached the risks of money laundering, particularly in their diamond and real estate trade sectors. Critics, including European supervision officials, argued that geopolitical considerations, such as energy agreements with Western nations, may have influenced efforts to accelerate the elimination of the EAU from the Gray list. Despite these accusations, the US officials have refuted the claims to provide inaccurate data, stating that their reforms are “Continuously precise, proven and true.”
The 2020 Report of Transparency International exceeded Dubai’s role in global money laundering, citing its real estate market as a shelter for illicit funds. The high profile scandals, such as the 1MDB case and the leaks of Luanda, have linked the EAU with cross -border corruption, which underlines the need for robust AML measures.
Broader national strategy
The MOU is aligned with the National Strategy 2024-27 of the EAU for AML/CPF, approved by the EAU cabinet on September 2, 2024. This strategy focuses on 11 strategic objectives, including the improvement of the understanding of the risk and swollen of cooperation of cooperation The department against money laundering of the Ministry of Economy plays a fundamental role in the implementation of this strategy, carrying out inspections and creating awareness to guarantee compliance.
He EAU has also followed international cooperation, signing 45 mutual legal assistance trees, including one with the United States in 2022. These agrees for facilitation of cross -border investigations and exchange of intelligence, critic to address global financial crimes networks.
Future impact and perspective
Mous is expected to improve The reputation of the EAU as a safe and transparent financial center, attracting a legitimate investment while determining illegal activities. Strengthening the supervision of the DNFBP sector and Improvement of coordination with Dubai entitiesThe EAU are aimed at mitigating risks in high -value sectors such as real estate and commerce.
However, sustained efforts are needed to address international groups and get out of the Fatf Gray list. The progress of the EAU will probably be evaluated in the next Plenary meetings of Fatf, with a visit on the site that potentially indicates the imminent elimination of the list. Meanwhile, the associations of the Ministry of Economy with ESCD and DLD established a precedent for local federal collaboration, which could serve as a model for other Emirates.
The Mou of the EUA Ministry of Economy with Dubai entities represents a proactive step to combat money laundering and terrorism finances. By reservoiring cooperation, improving transparency and aligning with global standards, EAU are reinforcing their position as a leader in financial integrity and economic competitiveness.