The United Arab Emirates (UAE) is making significant strides in sustainable finance and anti-money laundering (AML) efforts, positioning itself as a leader in responsible business practices and financial compliance.
Sustainable Finance Initiatives
The UAE has declared 2023 as the “Year of Sustainability,” launching a USD 30 billion climate fund in partnership with global investors like Blackrock, TPG, and Brookfield. This initiative aims to support sustainable finance projects and reduce carbon emissions. The Abu Dhabi Global Market (ADGM) has implemented a sustainable finance framework, introducing a harmonized taxonomy for investment products with designations such as “Green,” “Climate Transition,” and “Sustainability Linked.”
ADGM has also introduced mandatory ESG disclosure requirements for companies with an annual turnover exceeding USD 68 million and launched its first ESG benchmark index. Companies like Montana Technologies have joined the Abu Dhabi Sustainable Finance Declaration, pledging to integrate sustainable investments and address regional water security needs through innovative technologies.
Enhanced Anti-Money Laundering Measures
The UAE’s efforts in combating money laundering and financial crimes have yielded significant results. The Financial Action Task Force (FATF) removed the UAE from its grey list on February 23, 2024, recognizing the country’s substantial compliance measures and progress in facilitating AML investigations and increasing prosecutions.
A new law on the Regulation of the Accounting and Auditing Profession (Federal Decree-Law No. 41/2023) has been introduced, enhancing audit standards and including explicit AML reporting regulations. The UAE has also created new federal prosecution divisions specialized in economic crimes and money laundering.
The government’s commitment to stricter enforcement is evident in the suspension of 50 companies for failing to register with the anti-AML system and the conviction of 79 individuals involved in an online securities scam. These actions demonstrate the UAE’s dedication to creating a robust and compliant financial environment while driving sustainable development and green investments.
