UAE: UAE looks to experienced enforcers to sharpen AML enforcement

Regulators in the United Arab Emirates are turning to new technology and expertise from other jurisdictions to improve the country’s anti-money laundering regime.

Lawyers described fresh investment at regulatory agencies in both advanced technology and experienced enforcement personnel from regulators in the UK and Australia, a trend that Dubai-based White & Case local partner David Berman expects will likely be “accelerating further” in the coming year.

“The DFSA and the FSRA regimes are very closely modelled on the FCA’s regime, so it is not out of step with the approaches being taken in other jurisdictions,” Berman said.

While international companies have long had procedures in place to comply with more developed anti-money laundering regulations, UAE-based companies are also improving their compliance in response to the increasing scrutiny by local regulators. “I would say that the biggest misconception for businesses entering the UAE is that it’s still a light-touch jurisdiction for regulatory supervision and enforcement,” Berman said.

He added that there is “a much more developed awareness of regulatory requirements” among financial services businesses than there is among non-financial gatekeepers such as lawyers, accountants, gold dealers and estate agents.