The Economy imposes administrative penalties on 29 companies, amounting to 22.6 million dirhams

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The Ministry of Economy imposed administrative penalties on 29 companies operating in the specified non-financial business and profession sectors, at a value of 22.6 million dirhams, due to the companies’ non-compliance with anti-money laundering and combating terrorist financing legislation.

This step comes within the framework of the Ministry’s annual plan to ensure compliance with the provisions stipulated in Federal Decree-Law No. (20) of 2018 regarding countering money laundering crimes, combating the financing of terrorism, financing illegal organizations, its executive regulations and related decisions, and achieving the country’s full compliance with international standards issued by the Financial Action Task Force (FATF).

The Ministry stated that the companies against which administrative penalties were imposed committed 225 violations, represented in their failure to take the necessary measures and procedures to identify the risks of crime in their field of work, in addition to their failure to develop internal policies and procedures related to examining customer databases and transactions against names included in the lists of terrorism, which are in line with With the provisions of Resolution No. 74 of 2020 regarding the terrorist lists system, the implementation of Security Council resolutions related to preventing and suppressing terrorism and its financing, stopping the proliferation of arms and its financing, and related decisions, the ministry indicated that the violating companies, including 17 companies that practice activities related to precious metals and precious stones, and 4 of Companies providing corporate services, and two companies practicing the activities of auditors.

His Excellency Abdullah Sultan Al Fan Al Shamsi, Assistant Undersecretary of the Ministry of Economy for the Control and Follow-up Sector and Chairman of the Committee for the Imposition of Administrative Penalties on violators of the owners of designated non-financial businesses and professions, said: “These penalties come within the framework of the plans and efforts of the Ministry of Economy as a supervisory authority on designated non-financial businesses and professions, to deter violators and to achieve full compliance.

He added that the Ministry of Economy is intensifying field inspection efforts on high-risk companies in all emirates of the country, and the Ministry’s work teams are providing intensive awareness and training support to business sectors and non-financial professions, in addition to conducting field inspections on violators, and imposing administrative penalties for violators.

He stressed that adherence and compliance are an irreplaceable option in the policies and plans of the Ministry of Economy to reach a compliant and safe business environment from money laundering and terrorist financing crimes as a national priority and firm will in order to enhance the competitiveness of the UAE economy regionally and globally.

For her part, Safia Al-Safi, Director of the Anti-Money Laundering Department at the Ministry of Economy, said that the ministry is determined to implement the annual inspection plans by 100%, and in order to achieve this, it doubled the number of field inspectors to prepare technical inspection reports and submit them to the Investigation and Enforcement Department to take the necessary measures regarding the imposition of deterrent administrative penalties. .

She emphasized that the work team of the Money Laundering Control Department in the department effectively practices desk and objective inspections in an intensive manner, especially within the framework of the 2023 plan.

For his part, Counselor Salem Al-Tunaiji, Head of the Investigation and Enforcement Department, member of the Administrative Penalties Committee at the Ministry of Economy, confirmed that the committee applies administrative penalties in accordance with the legislation in force and according to a specific work methodology, indicating that there are more reports that are currently being studied by the Investigation and Enforcement Department, and that There are more violations that will be imposed on violators in order to achieve a safe economic environment for the UAE free of money laundering and terrorist financing crimes.

Al-Tunaiji pointed out the need for companies operating in the specified non-financial business sectors and professions to enter the website of the Anti-Money Laundering Department, in order to view the legislation, circulars and guidebooks that help them understand and implement obligations in accordance with local and international requirements.

On the other hand, the Ministry of Economy called upon all companies operating in the specified non-financial business sectors and professions to visit the website of the Anti-Money Laundering Department,
https://www.moec.gov.ae/web/guest/aml, in order to review legislation, circulars and evidence that help them understand and apply obligations in accordance with local and international requirements, stressing that commitment and compliance are necessary for the Ministry’s policies and plans to reach a compatible and safe business environment from crimes Money laundering and terrorist financing, which is a national priority.