UAE Takes MENAFATF Presidency: Compliance Pressure Might Increase
- 17.01.2026
- Posted by: Uwe Hohmann
- Categories: Compliance, Dubai, Middle East
The UAE now leads MENAFATF (Middle East and North Africa Financial Action Task Force) for 2026. This coincides with the third round of mutual evaluations using stricter FATF (Financial Action Task Force) methodology.
If you run a business in the UAE, expect regulators to tighten requirements over the next 12 to 24 months.
What Might Change
The UAE presidency has set clear priorities. Three areas will see increased regulatory activity:
UBO transparency. The UAE already requires companies to maintain accurate registers of UBO (Ultimate Beneficial Owner). Enforcement will intensify. If your company records are incomplete or outdated, fix them now. Fines for non-compliance range from AED 10,000 to AED 100,000 per violation.
Virtual assets and fintech. Businesses dealing in cryptocurrencies, digital payments, or financial technology face closer scrutiny. VARA (Virtual Assets Regulatory Authority) and other bodies will align local rules with global standards. Expect more reporting obligations and stricter licensing conditions.
Transaction monitoring. Banks and designated non-financial businesses must show their systems actually detect suspicious activity. Regulators want evidence that controls work in practice.
The Importance of Compliance
When FATF assesses a country, it examines both laws and implementation. Poor results affect the entire business environment. Countries on FATF grey or black lists face restricted banking relationships, higher transaction costs, and reputational damage that affects every company operating there.
The UAE exited the FATF grey list in 2024 after significant reforms. Maintaining that status requires continued performance. Regulators will pass this pressure down to businesses.
Practical Steps
Review your company’s UBO register. Confirm that the details are up to date and match those you have filed with the authorities.
Check your internal policies. Do you have written procedures for customer due diligence, sanctions screening, and suspicious transaction reporting? Can you produce them if asked?
If your business is in regulated sectors, verify your licence conditions. New requirements may apply, particularly for virtual asset service providers.
Keep documentation. Regulators can increasingly request evidence of compliance.
Comprehensive UAE Business Solutions
The UAE’s MENAFATF presidency shows where the regulatory focus will land. Businesses must maintain proper records, and those operating with outdated structures or incomplete documentation face growing risk.
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