How do UAE firms assess proliferation financing risk?
Proliferation financing risk concerns the danger that a firm’s products or services could be used to fund the spread of weapons of mass destruction or to evade related sanctions. The UAE AML framework now covers proliferation financing explicitly, so firms must build it into their risk assessments alongside money laundering and terrorist financing.
Where high proliferation financing risk is identified, the Executive Regulations require proportionate measures. These include enhanced internal controls to detect and prevent breaches or circumvention of targeted financial sanctions, ongoing enhanced scrutiny of the business relationship, documented records of the measures taken, and periodic reviews of controls as risk levels change. Screening against sanctions lists and watching for evasion typologies are central to this work.
Legal Reference (UAE):
· Cabinet Resolution No. 134 of 2025 (Executive Regulations), Article 5(4): sets out the measures where high proliferation financing risk is identified.
· Federal Decree-Law No. 10 of 2025, Article 19(1)(e): firms must implement targeted financial sanctions instructions without delay.
For more details, consult the full text of the Executive Regulations or seek guidance from your AML compliance officer.