The Ministry of Economy said that it has prepared its comprehensive plans to implement its obligations in accordance with the requirements of Federal Law Decree No. 20 of 2018 regarding countering money laundering crimes, combating the financing of terrorism and financing illegal organizations, and its executive regulations issued by Cabinet Resolution No. 10 of 2019
In a circular issued by the Minister of Economy, the Ministry stressed its concern that these requirements do not constitute organizational burdens and significant operational costs, noting that it bases in its plans on the principle known as the risk-based approach and takes into account the nature of the risks of each sector from the perspective of facing money laundering and terrorist financing crimes.
The Ministry revealed that it is currently working with a number of its partners on several steps, directly and immediately, regarding taking the necessary measures to start to achieve the requirements mentioned in the circular for establishments operating in its activities in the country, including commercial free zones for specific non-financial occupations and professions, as well as working closely with the Ministry to ensure the fulfillment of the state Of their obligations in a manner that achieves the public and common interest between the public and private sectors, provided that these facilities are informed of all procedures according to a regular schedule.
The Ministry noted that the risks of money laundering and terrorist financing are caused by cross-border practices and lead to vibrations in the global economy due to the unnatural and illogical movement of funds based on legal or realistic grounds which makes these practices affect the economy negatively both at the national level Or universal.
The Ministry stressed that the risks of money laundering and terrorist financing extend to specific non-financial business and professions sectors and are highly vulnerable to being exploited by individuals or institutions operating illegally through money laundering and terrorist financing, especially through the real estate sector or the gold and diamond trade sector as well Corporate service providers, independent accountants and auditors, noting that these groups are vulnerable to misusing their services for money laundering and terrorist financing.
The circular pointed out that the federal law and its executive regulations regarding countering money laundering crimes, combating the financing of terrorism and financing illegal organizations is the basic reference that all concerned establishments must adhere to, and that the recommendations of the Financial Action Group (FATF) are the international reference recognized in the procedures for facing crimes Money laundering and combating the financing of terrorism, stressing that the UAE is fully committed to these recommendations, which enhances the reputation and standing of the state as a responsible and active member of the international community in combating money laundering and terrorist financing crimes.
She indicated that it is necessary to review the specific legislation and evidence regarding facing money laundering crimes (law, regulation, and any related legislation) in a precise way in order to ensure an understanding of the establishments' situation, including a perception about its plans to achieve its obligations in this regard, noting that it has started developing comprehensive and ambitious plans since its assignment From the Council of Ministers, in coordination with the relevant referring authorities, under the supervision of the National Committee to counter money-laundering crimes, combating the financing of terrorism and financing illegal organizations.