UAE ramps up defences as AI-powered financial crime threatens $2 trillion global laundering market
The United Arab Emirates is escalating its fight against cyber-enabled financial crime as criminal networks increasingly deploy artificial intelligence to automate money laundering operations at industrial scale, according to a new government report released during Abu Dhabi Finance Week 2025. The publication comes as authorities implement Federal Decree-Law No. 10 of 2025, strengthening the nation's legal framework against money laundering, terrorist financing and proliferation financing.
The timing is critical. Global estimates suggest more than $2 trillion is laundered annually, with over $1 trillion stolen through fraud—much of it now amplified by AI technologies, deepfakes, and cryptocurrency mixers that help criminals evade detection across borders.
Background and Context
The UAE's rapid technological advancement has created both opportunities and vulnerabilities. The national fintech market is projected to reach $3.5 billion in 2025, while cryptocurrency inflows exceeded $34 billion last year. This digital expansion, while economically beneficial, has simultaneously widened exposure to sophisticated financial crime networks.
Criminal organizations are exploiting these technological shifts with increasing sophistication. The report reveals how groups now combine encrypted communications, digital payments, virtual assets, and online marketplaces to commit fraud, traffic narcotics, and launder proceeds through complex cross-border chains.
Key Figures and Entities
Dr. Ebrahim Al Alkeem, director of the national risks and policies department at the General Secretariat of the National Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation Financing Committee (NAMLCFTPFC), emphasized the need for unified action. "Given the sustained, rapid evolution of cyber-enabled financial crime, the integration of current research, such as this paper, is indispensable to the wider National Risk Assessment (NRA) efforts being executed within the UAE," he stated during a panel session at ADFW 2025.
The report itself, titled "Anatomy of a Digital Threat: Understanding and Addressing Cyber-Enabled Financial Crime in the UAE," represents a collaboration between government authorities and financial crime specialists. It underscores how AI is becoming a "force multiplier" for money laundering operations, enabling criminal scale and automation far beyond traditional methods.
Legal and Financial Mechanisms
At the heart of the UAE's enhanced response is Federal Decree-Law No. 10 of 2025, which strengthens the legal framework for combating financial crimes. The legislation operates within what officials describe as a "comprehensive whole-of-government framework" designed to address threats from technological advancements through coordinated, forward-looking preventative measures.
The reforms focus on multiple fronts: strengthening AML/CFT/CPF supervision, enhancing oversight of virtual-asset service providers, expanding cyber-intelligence capabilities, and building an integrated approach that links law enforcement, regulators, and private-sector partners. The goal is to create a resilient system capable of adapting to evolving threats.
International Implications and Policy Response
The UAE's approach reflects growing global concern about cyber-enabled financial crime. Criminal networks are increasingly using "fraud-as-a-service" tools and AI-powered phishing kits, leading to a sharp uptick in automated scam attempts worldwide. The UAE's strategic position as a financial hub makes its efforts particularly significant for international financial security.
The case highlights broader regulatory challenges faced by nations undergoing rapid digital transformation. As traditional predicate crimes like fraud and drug trafficking become more technologically sophisticated, countries must develop equally advanced detection and prevention mechanisms. The UAE's model of public-private collaboration and continuous risk assessment offers one potential framework for addressing these challenges.
Sources
This report draws on the UAE National Anti-Money Laundering Committee's publication "Anatomy of a Digital Threat: Understanding and Addressing Cyber-Enabled Financial Crime in the UAE" presented at Abu Dhabi Finance Week 2025, Federal Decree-Law No. 10 of 2025 on Countering Money Laundering, Terrorist Financing and Proliferation Financing, and public statements from UAE officials regarding the National Risk Assessment framework.
