How does the UAE assess terrorist financing risk?
Terrorist financing risk is assessed at both national and firm level in the UAE. At the national level the Committee, supported by the Financial Intelligence Unit’s strategic analysis, examines how funds could be raised, moved and used to support terrorism, and the sectors and channels most likely to be exploited. The 2024 assessment considered these threats alongside money laundering and proliferation financing.
At firm level, terrorist financing must be built into the risk-based approach in the same way as money laundering. This means screening customers and transactions against terrorist lists, watching for the red flags associated with financing, implementing targeted financial sanctions without delay, and filing suspicious transaction reports where financing is suspected. Even small transactions can be relevant, so value alone is not a reliable filter.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 14(2): the National Committee assesses terrorist financing risk at the national level.
· UAE Financial Intelligence Unit: strategic analysis informs the national understanding of terrorist financing risk.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.
The inter-relationship of money laundering and terrorist financing