UAE establishes special judicial panels to probe financial crimes

• Move considered first step to probe, control financial crimes. 
• Decision comes a year after being added in grey list by FATF.
• FATF listing blow to UAE's reputation as major financial, business hub.

In the wake of increased scrutiny by the global anti-money laundering watchdog, the United Arab Emirates has announced to set up judicial bodies dedicated to prosecuting money laundering and financial crimes.

The UAE, as per the official Emirates News Agency (WAM), has approved a proposal for creating federal prosecution entities specialised in economic crimes and money laundering.

This move is considered the first step in probing and controlling suspicious financial transactions, with a specific focus on forming specialised prosecution offices to address cases related to illicit finance.

It comes more than a year after the Paris-based Financial Action Task Force (FATF) added the UAE to a "grey list" of nations subject to greater oversight because of concerns over illicit finance.

The FATF listing in March 2022 came as a blow to the UAE's reputation as a major financial and business hub.

The watchdog has since upheld its decision, but a June report noted improved efforts in the UAE to tackle shortcomings.

The step announced on Sunday aims to enhance "the confidence of international investors in the UAE's business environment" and encourage "them to bring their businesses to the UAE", WAM said.

"The project's significance lies in its role in protecting the national economy and reducing the impact of economic and financial crimes," it added.

The UAE government is escalating its continuous efforts to fight money laundering and economic crimes, while taking several significant steps to reinforce the Gulf nation's legal and legislative structure towards achieving their goal and protecting its economy, in addition to boosting international investors' confidence and encouraging them to bring business.

WAM reported that the project aligns with the ‘We the UAE 2031’ Vision, particularly the ‘Forward Economy’ pillar, aimed at "establishing the world's top hub for the new economy"; and the ‘Forward Ecosystem’ pillar that comprises "positioning the UAE as the safest and most secure country in the world and preserving human rights through an advanced legislative and judicial system".

— Additional input from AFP