The Central Bank of the United Arab Emirates issued updated guidance on Anti-Money Laundering, Combating the Financing of Terrorism and Proliferation Financing (AML/CFT/CPF), aligning supervisory expectations with international best practices. Moreover, the updated package aims to strengthen compliance systems across the financial sector and enhance regulatory effectiveness.
The central bank said the guidance reflects its commitment to protecting the integrity of the UAE’s financial system and reducing exposure to domestic and cross-border financial crime risks. Additionally, it said the updates align with the National Strategy (2024–2027), Financial Action Task Force requirements, and global standards.
The central bank added that the new package will help licensed financial institutions and Registered Hawala Providers improve their understanding of money laundering, terrorist financing, and proliferation financing risks. As a result, it aims to strengthen detection capabilities and support proactive prevention of suspicious activity.
The package includes four regulatory guidance documents and two best-practice manuals.
Key regulatory guidance areas
One document focuses on risks related to proliferation financing. Moreover, it outlines three core elements of an effective CPF framework, including assessing inherent PF risks, evaluating controls and remedial actions, and monitoring emerging trends and typologies.
A second document addresses trade-based money laundering and transshipment risks. Additionally, it aims to support institutions in identifying and managing risks linked to trade activity while maintaining compliance with UAE regulatory requirements.
The package also includes guidance on correspondent banking relationships. Furthermore, it aims to strengthen institutions’ ability to monitor AML/CFT/CPF risks associated with correspondent services and ensure internal procedures align with UAE legal frameworks.
Another guidance document focuses on customer due diligence, Know Your Customer requirements, and record keeping. Moreover, it clarifies expectations for verifying customer identity, assessing risk exposure from onboarding through the full relationship lifecycle, and maintaining required documentation.
Best practices on risk assessment and training
The central bank also issued best-practice manuals on implementing risk-based approaches and institutional risk assessments. Additionally, the guidance outlines methodologies for assessing ML/TF/PF risks and applying counter-measures proportionate to the identified risk level.
A second manual focuses on role-based AML/CFT/CPF training. Moreover, it provides frameworks for specialised training programmes designed to strengthen early detection of suspicious activity and improve employee and management capabilities.
Khaled Mohamed Balama, Governor of the CBUAE, said, “The issuance of this new regulatory guidance package reflects the CBUAE’s commitment to solidifying the UAE’s leadership in Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Financing, in line with the highest international standards, and enhancing its position as a secure and trusted global financial hub.
At the CBUAE, we aim through these guidelines to raise awareness within the financial sector and enable Licensed Financial Institutions and Registered Hawala Providers (RHPs) to monitor emerging risks and prevent them effectively, efficiently, and responsibly. We are moving forward in developing a robust national framework to combat financial crimes, establishing a resilient financial system, and actively contributing to safeguarding the stability of the global financial system.”
