What is the money laundering risk rating for the ADGM insurance sector?
The insurance sector in Abu Dhabi Global Market carries a low ML and TF risk rating, the lowest rating assigned to any financial sector in the UAE assessment. AML, CFT and TFS controls in the sector are assessed as largely effective.
The rating reflects what the sector actually does. ADGM insurance mainly consists of captive insurance firms and brokers focusing predominantly on reinsurance. The firms are primarily formed to offer reinsurance cover for their own group or affiliated entities, and at the time of assessment all captives in ADGM had been set up by UAE government related entities.
That structure removes almost every laundering vector. There is no retail customer base, no cash, and the counterparties are known related entities rather than externally sourced clients.
Legal Reference (source document):
· UAE Money Laundering and Terrorist Financing National Risk Assessment, 2nd NRA (2024)
· National Anti-Money Laundering and Combatting Financing of Terrorism and Financing of Illegal Organizations Committee
Scope note: this rating covers ADGM only. Mainland insurance carries a medium residual ML risk rating.
Further reading: AML regulations for insurance companies and brokers
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