News

A two-day summit in Dubai concluded, underscoring the vital role of the Designated Non-Financial Businesses and Professions (DNFBPs) Sector in defense against financial crime and its significant contribution to developing and implementing controls against terrorism and arms proliferation.

The high-level event witnessed the participation of His Excellency Abdullah bin Touq Al Marri, Minister of Economy; His Excellency Abdullah bin Sultan Al Nuaimi, Minister of Justice; and His Excellency Ahmed bin Ali Al Sayegh, Minister of State. Representatives from numerous key entities also attended, including the Ministries of Interior and Justice, the Federal Authority for Identity, Citizenship, Customs & Port Security, the Federal Authority for Nuclear Regulation, the Securities and Commodities Authority, the Economic Security Center of Dubai, the General Secretariat of the National Anti Money Laundering and Combatting Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC), Abu Dhabi Global Market, the UAE Financial Intelligence Unit, the Dubai Financial Services Authority, and the Abu Dhabi Registration Authority, along with a significant number of regulatory officials and representatives from the DNFBPs sector.

Organized by the Ministry of Economy and the Executive Office for Control and Non-Proliferation (EOCN), the summit served as a key platform to raise awareness of the updated national and international requirements set by the Financial Action Task Force (FATF). The Summit also focused on the importance of robust customer due diligence and verification procedures that should be aligned with targeted financial sanctions to combat the financing of terrorism and arms proliferation, emphasizing enhanced compliance and effective cooperation between the public and private sectors.

Over its two days, the summit featured in-depth discussions on various facets of financial crime and money laundering, the critical roles of the DNFBPs sector in combating these crimes, ensuring the identification of beneficial owners, and the necessity of immediately reporting any suspicious activities.

His Excellency Al Marri asserted the UAE's conviction that the private sector, encompassing DNFBPs, constitutes the "first line of defense" against financial crimes, praising its effective contributions in reporting violations and confiscating illicit gains.

His Excellency disclosed the Ministry's extensive regulatory endeavors, revealing that over 5,341 field inspections and 11,483 office inspections were conducted on business establishments and DNFBPs between 2020 and mid-2024. He noted that these efforts resulted in approximately AED 307,650,000 in administrative penalties imposed on non-compliant entities within these sectors.

His Excellency further explained that the summit's timing is crucial, as the regulatory and supervisory landscape for combating money laundering and the financing of terrorism is rapidly evolving both domestically and internationally, imposing greater necessity for collaboration and enhanced cooperation among all stakeholders.

His Excellency Al Sayegh emphasized the UAE's commitment, guided by its wise leadership, to implement effective measures against money laundering and the financing of terrorism and to enhance its approach in line with international best practices, thereby bolstering the positive global reputation of national economy.

His Excellency added: "The federal government collaborates closely with local authorities in the UAE and the private sector to ensure that all entities adopt effective measures against money laundering and terrorism financing. The nation has established a public-private sector partnership committee to combat money laundering, which coordinates the efforts of government agencies and the private sector—a key element in the country's ongoing fight against financial crime."

In his opening address, His Excellency Talal Al-Teneiji, Director of the Executive Office for Control and Non-Proliferation, hailed the DNFBPs sector as a "strategic partner" in combating crime. He underscored the office's appreciation for the existing and constructive cooperation with this sector and its significant and contributing role in developing and implementing control requirements against terrorism and arms proliferation.

Summit participants lauded the substantial progress made by the UAE in combating financial crimes. In this context, His Excellency Al-Teneiji affirmed that the UAE, under the guidance of its wise leadership and in line with global best practices, has taken significant strides in modernizing its legislative and operational frameworks for implementing targeted financial sanctions related to combating terrorism financing and arms proliferation.

He highlighted the issuance of Federal Law No. 43 of 2021 concerning goods subject to non-proliferation controls and Cabinet Resolution No. 74 of 2020 concerning the system of terrorist lists and the implementation of relevant Security Council resolutions. He also mentioned the development of guidance manuals for both the public and private sectors and the organization of numerous programs and training workshops to improve understanding of methods used for terrorism financing, arms proliferation, and sanctions evasion. Furthermore, he emphasized the pivotal role of law enforcement and regulatory authorities in monitoring financial and non-financial institutions to ensure their adherence to national legislation and the requirements of Security Council resolutions.

Al-Teneiji added: "The Executive Office for Control and Non-Proliferation has developed a specialized e-learning platform in the area of targeted financial sanctions, in addition to providing programs, guidance manuals, illustrative videos, awareness sessions, and presentations through its website and communication channels," noting the strong participation from representatives of the private sector and government agencies on this platform.

Al-Teneiji stressed that financial crimes are constantly evolving, particularly in the context of globalization and innovation, and that modern technologies and emerging financial products pose new challenges that necessitate proactive measures, continued investment in innovation, the development of regulatory frameworks, and enhanced cooperation at regional and global levels.

It was announced that a national-level study on the risks of financing arms proliferation has recently been completed in partnership with the public and private sectors, and sessions have commenced to share its key findings to contribute to reducing customer risk levels.

For their part, summit participants emphasized that compliance should be integral to an organization's culture, not merely a job function. They also insisted that the UAE's economy is committed to building businesses on sound and robust foundations.

On the summit's first day, several Memoranda of Understanding and agreements were signed between the Ministry of Economy, the Executive Office for Control and Non-Proliferation, the Dubai Centre for Economic Security, and the Dubai Land Department, reflecting a move towards strengthening cooperation and coordination among various relevant entities to combat financial crimes in all their forms.