UAE to launch regional fraud and money laundering study under MENAFATF Presidency

Abu Dhabi: The UAE has announced plans to lead a regional study on fraud and money laundering during its presidency of the Middle East and North Africa Financial Action Task Force (MENAFATF). Hamid Saif Al Zaabi, MENAFATF President, confirmed the initiative is intended to enhance understanding of fraud risks and bolster collaboration among member states.

The proposal is slated for formal presentation at MENAFATF's forthcoming Plenary Meeting in Abu Dhabi, revealed at a press conference during the 15th United Nations Congress on Crime Prevention and Criminal Justice. Al Zaabi highlighted fraud's cross-border nature, the evolving tactics of criminals, and the increasing reliance on digital financial services as compelling reasons for a shared regional understanding.

He stressed the need for early detection tools and improved coordination among authorities to trace and combat fraud proceeds and related money laundering. The proposed project would establish a shared regional database detailing fraud types, methods, and scale across the region, as well as facilitate case study and expertise exchange among member states.

Other priorities include investigating challenges in freezing, seizing, and recovering criminal assets, particularly those tied to cyber-enabled fraud and virtual asset crimes. The initiative also aims to create a network of practitioners to enhance operational cooperation in money laundering investigations and coordination among relevant authorities.

The study would concentrate on banking and financial fraud, cyber-enabled investment and real estate fraud, hawala-linked money transfer fraud, virtual asset-related fraud, and trade-based money laundering connected to fraud. Al Zaabi emphasized the importance of drawing on FATF experience and peer regional bodies while considering the unique risk profile of the Middle East and North Africa.

He stressed that understanding fraud risks is essential for effective countermeasures and strengthening member states' capacity to trace and recover criminal proceeds, ensuring the integrity of their financial systems.