Abu Dhabi Global Market (ADGM), the international financial center of the capital city of the United Arab Emirates, is pleased to announce the launch of its inaugural Money Laundering and Terrorist Financing (ML/TF) Risk Assessment of ADGM Legal Persons and Arrangements Report (LPA Report). This announcement reaffirms ADGM’s commitment to combating financial crime and underscores its dedication to maintaining an effective Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) system within its jurisdiction.
Abu Dhabi Global Market (ADGM), the international financial center of the UAE’s capital city, has launched its first-ever Money Laundering and Terrorist Financing (ML/TF) Risk Assessment of ADGM Legal Persons and Arrangements Report (LPA Report). The announcement demonstrates ADGM’s determination to combat financial crime and emphasizes its commitment to upholding a robust Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) system within its jurisdiction.
Read more: ADGM achieves record performance in 2022
The Center has established a comprehensive legal framework that covers 16 distinct Legal Person and Arrangement (LPA) types. To comprehend the ML/TF risks associated with each LPA type, ADGM carried out a meticulous assessment exercise, which led to the creation of a highly detailed risk assessment model.
ADGM has created an in-house scientific model and methodology that incorporates best practices from the Financial Action Task Force (FATF) recommendations, as well as benchmarking against other international bodies and jurisdictions such as the European Commission, the United Kingdom, Luxembourg, and Ireland. This model employs a systematic approach to assess each LPA type, evaluate threats, inherent vulnerabilities, the likelihood of exploitation, and the effectiveness of mitigating measures.
Commenting on this, H.E. Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development and ADGM, offered that the assessment not only enhances their granular understanding and detailed knowledge of risks specific to each ADGM Legal Person and Arrangement type, but also fosters stronger collaboration with regulated entities, regulatory bodies, and law enforcement agencies.
The assessment findings will provide ADGM, particularly the registry staff, with valuable insights that will enable them to conduct risk assessments on registration applications more efficiently, as well as monitor the compliance of existing firms. This will ensure that ADGM’s financial ecosystem maintains its integrity by implementing improved policies, procedures, and controls to manage money laundering and terrorist financing within its jurisdiction. Additionally, the assessment will be reviewed and updated regularly to incorporate the results and enhance the understanding of money laundering and terrorist financing risks, as well as ADGM LPA vulnerabilities.
Click here for more news on banking & finance.
