UAE Releases Updated National Risk Assessment on ML/TF

The assessment aims to provide a comprehensive view of the ML and TF threats faced by the country using a methodology developed by the World Bank.

Key takeaways from the assessment include:

➡️ Core threats: Fraud and drug trafficking are identified as the highest threats with criminals using sophisticated social media and dark web networks to launder funds;

➡️ Common typologies: The most observed ML typologies include the use of third parties, the abuse of bank accounts and international transfers, the use of legal persons and complex ownership structures to obfuscate the source of funds, and investment in real estate to move a large amount of funds in a single purchase;

➡️ Highest risk sectors: Banking, virtual asset service providers, exchange houses, real estate, and registered Hawala providers were all identified as higher risk sectors for ML/TF risks; and

➡️ Key vulnerabilities: Asset seizure mechanisms, designated non-financial businesses and professions, cash courier licensing, and identity verification requirements were all identified as areas for strengthening.

✅ Firms operating in, or engaging with, the UAE should review their customer risk assessment methodologies and incorporate the assessments findings to reflecting the evolving threat landscape.

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