The Central Bank of UAE has imposed stringent actions against fraudulent insurance companies.

Aug 2025 : In the year 2022, The Financial Action Task Force (FATF), the United Nations global body combating money laundering and terrorism financing, had blacklisted the United Arab Emirates by adding it in the list of perpetual defaulters. The European Parliament decided not to object to the European Commission’s proposal to amend the EU list of high-risk countries, enabling the removal of the UAE.

UAE since then had significantly enhanced its legal, regulatory and operational frameworks, including increased inter-agency co-operation and a sharp rise in enforcement outcomes.

An immaculate effort led by His Highness Sheikh Abdullah bin Zayed and a capable national team in strengthening the state’s legislative and financial system had resulted in the European Parliament’s approval to remove the UAE from the list of high-risk countries in July, 2025. A well-deserved achievement that reflects growing international confidence in the UAE’s position as a leading and trusted global financial hub.

Since then, UAE has made significant progress in combating money laundering and the financing of terrorism over the past few years, passing strict laws and issuing regulations to clamp down on financial crime. In September last year, the UAE set out a nationwide action plan aimed at combating terrorism financing and money laundering. The 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing has 11 goals focused on risk-based compliance, effectiveness and sustainability. The enhanced framework, overseen by the Higher Committee and led by an expanded National Committee, includes the former Executive Office of Anti-Money Laundering and Counter Terrorism Financing, which now serves as the General Secretariat.

The immediate benefits of the delisting include reduced compliance friction for firms transacting with EU entities, and greater ease of access to European financial markets. Moreover, over the long term, the delisting reinforces the UAE’s position as a leading international hub for finance and trade, supports its competitiveness, and strengthens its ability to contribute to and shape the development of global AML/CFT norms. When countries come off high-risk watchlists, they often see capital inflows of up to 7.6% of their gross domestic product, with foreign direct investment alone increasing by around 3%, according to the International Monetary Fund.

Post July, 2025 UAE had amended its laws on anti-money laundering, and the financing of terrorism and illegal organisations to ensure better regulatory oversight. In what is considered to be a bold and a decisive step in the trajectory of the nation’s economy, the UAE Central bank has suspended the license of insurance company “Yas Takaful” for non-compliance with the country’s regulatory framework, along with reiterating that “Yas Takaful” remains liable for all rights and obligations arising from insurance contracts concluded before the suspension.

“Yas Takaful”, formerly known as “Al Hilal Takaful”, was established in 2008 and acquired in 2020 by UAE-based private investment firm Siraj Holding. It offers Sharia-compliant takaful solutions, according to its website. Takaful is a form of Islamic insurance where participants pool their contributions to provide mutual protection against loss or damage, offering coverage for health, life, and general insurance requirements.

Earlier, the Central bank revoked the license of Al Khazna, after the insurance company failed to meet the licensing requirements needed to conduct business during the period of suspension of its license.

It also imposed a fine of Dh4.1 million ($1.1 million) on three exchange houses in July for failing to comply with the law on anti-money laundering and counter-terrorism financing (AML/CFT), as it continues its fight against illegal financial activity. In June, the Central Bank had imposed a Dh100 million fine on an exchange house for “significant failures” in its AML/CFT framework.

Overall, the UAE imposed fines of more than Dh42 million on private sector entities during the first half of 2025 for not complying with money laundering regulations. A total of 1,063 breaches were discovered in the six months through the end of June across four categories.

Team Maverick