Abu Dhabi, September 19 (BNA): The Central Bank of the United Arab Emirates has published the report “Models in the Financial Sector” issued by the Subcommittee on Regulatory Bodies chaired by the Central Bank.
The Regulatory Authorities Subcommittee includes the Abu Dhabi Global Market and the Dubai Financial Services Authority, the Executive Office for Combating Money Laundering and Terrorist Financing (AML/CFT), and the UAE Financial Intelligence Unit (FIU).
The report aims to identify and raise awareness of emerging risks in the financial sector, and to enable the regulatory authorities and relevant financial institutions to be vigilant and to address these risks in a timely manner, according to the new Emirates Agency (WAM).
The rating report discovers the most common risks among financial institutions and best practices to address them. A pilot group of financial institutions has been selected to identify the unique risks prevalent in the sector that have been exacerbated by the COVID-19 pandemic.
Patterns identified in the report include money laundering, terrorist financing, fraud, bribery, corruption, charitable fraud, disasters, cyberattacks, and external fraud caused by the COVID-19 pandemic.
The report indicated that the risks arising from the identified patterns are in addition to the risks of crimes related to money laundering and terrorist financing that were identified in the UAE National Risk Assessment and are likely to be prevalent throughout the broader financial sector. Among these risks are the increased use of unlicensed money service providers and the increased risk of cyber-attacks.
It also reveals effective mitigation, identification, and resolution methods implemented by financial institutions, as well as trend analyzes of the risks observed.
“This report is part of our ongoing efforts to address trends and patterns in money laundering and terrorist financing arising from the COVID-19 pandemic in the financial sector.
Although these risks are still in the early stages of their identification, the UAE Central Bank along with the relevant supervisory authorities have issued this report as a major reference for financial institutions on the patterns and indicators related to the pandemic, so they remain informed and be able to mitigate these risks. emerging developments. UAE Central Bank Governor Khalid Mohammed Balami said that the risks that ultimately contribute to maintaining the integrity of the UAE financial system.