The future of AML compliance: Predictions and strategies for 2024 and beyond and how MBG can help you

The United Arab Emirates (UAE) has fortified its position as a prominent player in the global battle against financial misconduct. As a thriving financial hub in the Middle East, the UAE acknowledges the significance of upholding a strong framework for combating money laundering to preserve the stability and standing of its financial sector by putting stringent Anti-money laundering (AML Compliance) regulations.

In the first quarter of 2023 the UAE has imposed fines totaling AED 65.9 million on 137 companies for failing to adhere to AML regulations.¹ In light of increased regulatory scrutiny and the rapidly evolving landscape of financial wrongdoing, it is now more imperative than ever for financial institutions and enterprises operating in the UAE to get AML Risk Assessment done and proactively adapt to the latest AML compliance.

Here are some potential developments and trends related to an increased emphasis on the Future of AML Compliance in UAE:

1. Customer Due Diligence (CDD) Evolution: UAE could transform its stance on Customer Due Diligence (CDD), possibly adopting methods that prioritize risk assessment and technology. This shift has the potential to simplify the customer onboarding procedure for those with low risk while directing more attention toward high-risk clientele.
2. Increased Scrutiny on Beneficial Ownership: UAE might intensify its focus on ensuring transparency in beneficial ownership details. This initiative can aid in the identification of the true owners of assets and serve as a deterrent to unlawful activities.
3. Cybersecurity and Data Protection: In light of the growing significance of digital transactions and data in the realm of financial services, AML compliance could prioritize bolstering cybersecurity measures aimed at safeguarding sensitive information and thwarting data breaches.

4. Enhanced Regulatory Framework: The UAE has been diligently engaged in fortifying its regulations pertaining to AML and counter-terrorism financing (CTF). In the near future, it is reasonable to anticipate additional improvements in the regulatory framework, potentially in alignment with global standards established by organizations such as the Financial Action Task Force (FATF).
5. Crypto and Virtual Assets: As cryptocurrencies and virtual assets continue to expand, regulatory frameworks and compliance strategies in these domains will develop to mitigate potential anti-money laundering (AML) threats.

We at MBG Corporate Services provide Anti – Money Laundering Consulting services in order to ensure our clients follow all the AML Compliances and are ready for the new regulations in 2024:

• Registration on the Go AML Portal.
• AML/CFT Policies & Procedures.
• KYC Forms and Internal reporting forms.
• Risk Assessment Matrix
• AML CFT Training.
• Monthly/Periodic AML Compliance Review Report over KYC documents.
• Review of AML Compliance Framework.

1. https://www.moec.gov.ae/en/-/ministry-of-economy-imposes-fines-worth-aed-65.9-million-on-137-dnfbp-companies-in-q1-2023-%C2%A0-840-companies-were-inspected-during-which-a-total-of-831-violations-were-found#:~:text=Asset%20Publisher,-null%20Ministry%20of&text=The%20Ministry%20of%20Economy%20(MoE,the%20first%20quarter%20of%202023.

For other Risk Services go here:- Risk Advisory Services