While the UAE’s anti-financial crime framework has come under increased monitoring of late, the Financial Action Task Force (FATF) has recognised the positive progress made towards the country’s efforts to counter anti-money laundering and terrorism and proliferation financing.
The Executive Office of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) has firmly repeated its stance on identifying and eliminating financial crime networks, which, in line with the UAE’s National Action Plan, underpins the country’s position as an attractive global business centre that operates in line with international standards.
The Dubai Financial Services Authority, which serves as the independent regulator of financial services conducted in or from the Dubai International Financial Centre, is entirely aligned with the UAE’s stand on financial crime. To this end, the provision of all-rounded regulation is at the core of the DFSA.
Over the past five years, the DFSA has witnessed significant evolution in the financial services regulation sector in the UAE.
While in the past the focus was largely on the development of best-practice legislation and regulations that serve businesses in the financial services industry, the mandate for the DFSA and for other regulators across the UAE has since advanced.
Today, innovation plays a key role in the very formulation of legislation, calling for the provision of safe regulatory environments that are suited to new ways of doing business.
Rapid innovation within the sector is challenging supervisors to provide much more than frameworks that guide businesses, attract investors and protect financial services consumers.
Lessons learnt from financial crises and stock market crashes have created the need for principles-based regulatory approaches, which are more adaptable to changes in economic conditions, enable innovation and support new business formation.
Increased investments and trade in virtual or digital assets, however, places greater emphasis on addressing money laundering, terrorist financing and proliferation financing risks arising from these activities.
Combating money laundering, terrorism and proliferation financing
Efforts to identify and tackle financial crime are of utmost importance even as the UAE makes large strides in being a major international financial centre.
Since the FATF Mutual Evaluation Report of the UAE was published in April 2020, the UAE has taken significant steps to align regulatory, supervisory and enforcement frameworks further with the FATF Recommendations.
The DFSA has been actively contributing to supporting national efforts to prevent or combat financial crimes, with an increasing focus on money laundering, terrorism financing and proliferation financing (ML/TF and PF) risks.
The DFSA has also participated in the discussions and policy works of the various national AML/CFT and CPF committees and sub-committees.
To this end, the DFSA’s systematic assessment of risk allows us to identify common issues across our regulated companies. Leading up to the evaluation of the UAE’s compliance levels with FATF standards, the DFSA made a series of policy amendments to bring its AML/CTF and CPF framework into further alignment with the FATF's recommendations for 2021.
Our recently published Financial Crime Prevention Programme report 2019-2021 highlights the key efforts made by the DFSA and DIFC Authority’s Registrar of Companies (RoC) to prevent abuse of the financial system in the UAE.
International assessors have shared favourable views recognising the DFSA’s efforts in developing a detailed understanding of ML/TF risks and in applying effective and dissuasive sanctions against both companies and individuals.
Recent DFSA enforcement actions against several big companies ranging from banks to private equity firms accused of financial misconduct, corruption and money laundering have resulted in companies and individuals being named and held accountable for their wrongdoings.
Heavy fines and severe restrictions have been imposed, acting as a strong message and credible deterrent to others from engaging in similar misconduct.
These enforcement actions taken by the DFSA against entities that have engaged in misconduct have led to better regulatory outcomes. On one hand, companies in the wrong have co-operated to rectify their compliance failures, putting in place stronger internal risk assessment controls and due diligence processes, while raising compliance awareness at organisation-wide levels.
On the other, subjecting financial institutions and companies in the DIFC to higher levels of scrutiny fosters a stronger culture of compliance and transparency.
Protecting the financial ecosystem’s integrity in the UAE
Ultimately, the regulation of financial services is an ever-evolving process of checks and balances, which involves working closely with companies and individuals in the DIFC to educate them about, and mitigate, financial crime risks. Compliance obligations should be proportionate to the mitigation of risks.
Keeping in mind the fine line between over and under regulation, the DFSA undertakes assertive efforts ranging from monitoring programmes to thematic reviews, as well as compliance assessments, underpinned by intensive and sustained cycles of supervision.
Increased accountability and stronger internal controls mean companies within our regulatory jurisdiction are more likely to have in place measures to prevent corruption, financial mismanagement and the more serious crimes linked to money laundering and terrorism and proliferation financing. This effectively limits the risks that companies and individuals can take, resulting in a more transparent and compliant financial ecosystem.
Moreover, as new innovations continue to disrupt the UAE’s financial services sector, giving rise to a rapidly expanding interest in virtual assets and virtual asset service providers, the DFSA has also moved to regulate this space.
Collaboration with our regional and global peers to enhance our alignment with international financial crime prevention standards will remain a top priority.
As the country moves forward with its ambitions to become a digital economy, the DFSA will continue to contribute towards establishing the UAE as a thriving global financial centre through innovative regulations.
Waleed Saeed Al Awadhi is chief operating officer of DFSA
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Frida%20
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'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
Honeymoonish
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Elie%20El%20Samaan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENour%20Al%20Ghandour%2C%20Mahmoud%20Boushahri%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Oscars in the UAE
The 90th Academy Awards will be aired in the UAE from 3.30am on Monday, March 5 on OSN, with the ceremony starting at 5am
The%20trailblazers
%3Cp%3ESixteen%20boys%20and%2015%20girls%20have%20gone%20on%20from%20Go-Pro%20Academy%20in%20Dubai%20to%20either%20professional%20contracts%20abroad%20or%20scholarships%20in%20the%20United%20States.%20Here%20are%20two%20of%20the%20most%20prominent.%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EGeorgia%20Gibson%20(Newcastle%20United)%3C%2Fstrong%3E%0D%3Cbr%3EThe%20reason%20the%20academy%20in%20Dubai%20first%20set%20up%20a%20girls%E2%80%99%20programme%20was%20to%20help%20Gibson%20reach%20her%20potential.%20Now%20she%20plays%20professionally%20for%20Newcastle%20United%20in%20the%20UK.%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMackenzie%20Hunt%20(Everton)%3C%2Fstrong%3E%0D%3Cbr%3EAttended%20DESS%20in%20Dubai%2C%20before%20heading%20to%20the%20UK%20to%20join%20Everton%20full%20time%20as%20a%20teenager.%20He%20was%20on%20the%20bench%20for%20the%20first%20team%20as%20recently%20as%20their%20fixture%20against%20Brighton%20on%20February%2024.%0D%3C%2Fp%3E%0A
Star%20Wars%3A%20Episode%20I%20%E2%80%93%20The%20Phantom%20Menace
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Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
UAE currency: the story behind the money in your pockets
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Correspondents
By Tim Murphy
(Grove Press)
Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
Without Remorse
Directed by: Stefano Sollima
Starring: Michael B Jordan
4/5
Company%20profile
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U19 WORLD CUP, WEST INDIES
UAE group fixtures (all in St Kitts)
- Saturday 15 January: UAE beat Canada by 49 runs
- Thursday 20 January: v England
- Saturday 22 January: v Bangladesh
UAE squad:
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles
Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly,
Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya
Shetty, Kai Smith
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
25%20Days%20to%20Aden
%3Cp%3EAuthor%3A%20Michael%20Knights%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20January%2026%3C%2Fp%3E%0A
UAE central contracts
Full time contracts
Rohan Mustafa, Ahmed Raza, Mohammed Usman, Chirag Suri, Mohammed Boota, Sultan Ahmed, Zahoor Khan, Junaid Siddique, Waheed Ahmed, Zawar Farid
Part time contracts
Aryan Lakra, Ansh Tandon, Karthik Meiyappan, Rahul Bhatia, Alishan Sharafu, CP Rizwaan, Basil Hameed, Matiullah, Fahad Nawaz, Sanchit Sharma
match info
Manchester United 3 (Martial 7', 44', 74')
Sheffield United 0
COMPANY%20PROFILE%20
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RIVER%20SPIRIT
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COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs: 2019 Mini Cooper
Price, base: Dh141,740 (three-door) / Dh165,900 (five-door)
Engine: 1.5-litre four-cylinder (Cooper) / 2.0-litre four-cylinder (Cooper S)
Power: 136hp @ 4,500rpm (Cooper) / 192hp @ 5,000rpm (Cooper S)
Torque: 220Nm @ 1,480rpm (Cooper) / 280Nm @ 1,350rpm (Cooper S)
Transmission: Seven-speed automatic
Fuel consumption, combined: 4.8L to 5.4L / 100km
UAE currency: the story behind the money in your pockets
POWERWASH%20SIMULATOR
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ASHES FIXTURES
1st Test: Brisbane, Nov 23-27
2nd Test: Adelaide, Dec 2-6
3rd Test: Perth, Dec 14-18
4th Test: Melbourne, Dec 26-30
5th Test: Sydney, Jan 4-8
ENGLAND SQUAD
Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood
