Strengthening AML and CFT Compliance in Dubai: A Closer Look at Education and Enforcement

Dubai has emerged as a regional leader in combating financial crimes, bolstering its anti-money laundering (AML) and counter-financing of terrorism (CFT) frameworks. The 2nd Annual Anti-Money Laundering & Compliance Conference took place in Dubai in February 2025, serving as a pivotal gathering for AML and compliance professionals across the MENA region. The event built upon the success of its inaugural edition, bringing together global leaders, regulatory authorities, financial institutions, and industry experts to address the ever-evolving landscape of financial crime and regulatory challenges. Key discussions centered on the integration of advanced technologies such as AI and digital identity verification in AML processes, as well as the importance of public-private partnerships in enhancing compliance frameworks. Notably, the conference emphasized the UAE’s commitment to strengthening its AML/CFT framework, aligning with the national strategy for 2024–2027, which focuses on risk-based compliance and international cooperation.

A significant highlight of the conference was the introduction of innovative solutions like “AML Compliance as a Service,” aimed at helping businesses stay abreast of rapidly changing regulatory requirements. The event also featured discussions on the challenges of outsourcing AML tasks, balancing cost-effectiveness with the risks of exposing sensitive financial systems to external parties. Experts debated the extent to which financial institutions can offload compliance responsibilities while maintaining robust internal controls. The conference underscored the necessity for financial institutions to adapt their compliance programs in response to emerging technologies and evolving regulatory landscapes, ensuring they remain resilient against sophisticated money laundering methods.

The UAE’s proactive approach to anti-money laundering (AML) and counter-financing of terrorism (CFT) frameworks includes stringent regulatory enforcement and expansive educational initiatives targeting both financial institutions and designated non-financial businesses and professions (DNFBPs)..

In August 2024, the Central Bank of the UAE (CBUAE) imposed a fine of Dh5.8 million on an unnamed bank for significant deficiencies in its AML/CFT policies and procedures. This action, taken under Article 14 of Federal Decree Law No. (20) of 2018, underscores the CBUAE’s commitment to maintaining the integrity and transparency of the UAE’s financial system.

This penalty is part of a broader enforcement trend. In 2023, the CBUAE conducted 181 field examinations of licensed financial institutions, resulting in fines totaling AED 113.675 million for non-compliance with AML/CFT regulations.

Recognizing the critical role of DNFBPs in the financial ecosystem, the UAE has launched extensive educational programs to enhance AML/CFT compliance. In 2023, the CBUAE conducted 40 awareness sessions, attended by over 35,000 participants from sectors including auditing, real estate, jewelry, and other service providers.

These sessions aim to equip professionals with the knowledge and tools necessary to identify and mitigate financial risks, fostering a culture of compliance across various industries.

The UAE’s concerted efforts in enforcement and education have yielded tangible results, including its removal from the Financial Action Task Force (FATF) grey list. To sustain this momentum, continuous collaboration between regulators and industry stakeholders is essential.

By investing in robust compliance frameworks and ongoing education, Dubai is not only safeguarding its financial system but also reinforcing its position as a trusted global financial hub.

Picture by Josh Appel.