CBUAE set to launch region-first AML technology

The Central Bank of the UAE is in the process of launching the region’s first-of-its-kind Supervisory Technology (SupTech) initiative to effectively combat money laundering operations.

Khaled Mohamed Balama, Governor of the CBUAE, said SupTech would enable early detection and warning of risks based on data assessment processes to determine the extent of exposure to money laundering operations.

Speaking at the recent National Summit on Financial Crime Compliance, the governor highlighted the UAE’s ongoing commitment to safeguard the integrity of the global financial system. He outlined the strategic decisions taken by the apex bank to strengthen the legal and regulatory framework and empower authorities to adapt to the changing risk environment.

The two-day summit brought together high-level local and international experts and decision-makers from regulatory bodies and law enforcement authorities. Around 45 speakers addressed vital topics in financial crime compliance and Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).

CBUAE has been stepping up efforts in strengthening cooperation between the UAE and the international community to combat money laundering and the financing of terrorism, as well as its adoption of a technology-based approach to effectively and efficiently develop control and supervision processes, Fatma Al Jabri, assistant governor for Financial Crime, Market Conduct and Consumer Protection, member of the National Anti-Money Laundering and Combating the Financing of Terrorism and the Financing of Illegal Organisations Committee,

The first day of the summit covered a range of topics including the national and regional strategy to manage financial crime risks including how to turn threats into opportunities, and mitigating proliferation financing risks and trade-based money laundering risks. Speakers comprised representatives from local and international regulatory bodies, local banks, and others.

The second day focused on the application and use of artificial intelligence in anti-money laundering controls, and an overview of the Law Enforcement Authorities’ (LEA) role in the Financial Action Task Force’s (FATF) Immediate Outcomes 6, 7, and 8.

The sessions of day two focused on the pivotal role of artificial intelligence in combating financial crime, while emphasising the importance of human resources in interpreting results and making critical and final decisions. Discussions also delved into the benefits of AI implementation, particularly crime detection and flexibility in risk assessment, as well as risks concerning data volume, data protection, and the need for robust security controls to pre-emptively identify and mitigate potential vulnerabilities.