Government Halts Operations of 50 Companies for Neglecting Registration in Anti-Money Laundering (AML) System

Following their failure to register with the UAE’s AML system, authorities in the country have taken action by suspending the operations of 50 companies.

The Ministry of Economy, as mentioned in a report by the state news agency Wam, has imposed a temporary hold on the functioning of entities throughout the 3rd quarter of 2023.

The Financial Intelligence Unit received reports of suspicious transactions, which led to the decision to take necessary action. The ministry has instructed the businesses that have been affected to enroll in the AML system. In case the businesses do not resolve their status during the span of 3 months, stricter sanctions await them, as per the representative. The FIU monitors business transactions and activities, to guard against money laundering and terrorist financing.

To prevent money laundering (ML) as well as terrorist financing (TF), the FIU keeps a close watch on business activities and transactions. As a component of the United Arab Emirates program to comply with global regulations established by the FATF, the department has escalated its endeavors to address financial crimes and compliance with regulations relating to AML in the United Arab Emirates.

Officials confirmed that the Ministry of Economy is responsible for supervising DNFBPs in both the mainland and free zone areas of the country. These entities encompass real estate agents and brokers, metal merchants and precious stone, auditors, and providers of corporate services.

The decision to freeze operations of 50 companies serves as a stern warning to other businesses in the UAE about the consequences of neglecting registration in the AML system. With efforts to combat financial crimes and compliance with AML regulations continuing to gain momentum globally, businesses need to prioritize compliance to avoid damaging legal and reputational implications. The Ministry of Economy’s supervision of DNFBPs underscores its commitment to ensuring that all entities are compliant with AML regulations in both mainland and free zone areas.