meta_id 3149519

On November 7, 2025, the Central Bank of the United Arab Emirates (CBUAE) issued comprehensive guidance on risks related to proliferation finance (PF) for licensed financial institutions (LFIs) and registered hawala providers (RHPs). The guidance comes into effect immediately, with LFIs expected to demonstrate compliance within one month of issuance. The guidance establishes expectations for LFIs to identify, assess, understand, and mitigate PF risks as part of their anti-money laundering, counter-terrorism financing, and countering proliferation financing (AML/CFT/CPF) obligations under Federal Decree-Law No. (20) of 2018 and Cabinet Decision No. (10) of 2019, as amended. It applies to national banks, branches of foreign banks, exchange houses, finance companies, payment service providers, payment token service providers, registered hawala providers, and insurance companies. The guidance addresses PF threats emanating from three categories: financial products related to trade in proliferation-sensitive goods; revenue-raising activities; and financial structures supporting fund movement. It identifies vulnerabilities across trade finance, correspondent banking, hawala and alternative remittance systems, offshore accounts, free trade zones, shell companies, insurance and reinsurance, real estate, and precious metals and stones dealing. The guidance emphasises customer due diligence measures incorporating PF-specific risk attributes, enhanced due diligence for higher-risk customers, transaction monitoring with PF-specific indicators, and targeted financial sanctions compliance. LFIs must screen customers and beneficial owners against sanctions lists prior to onboarding and on an ongoing basis. The guidance incorporates Financial Action Task Force (FATF) standards and references international obligations under United Nations Security Council Resolutions 1540, 1718, and related North Korea sanctions regimes. LFIs must maintain institutional-level PF risk assessments, implement appropriate governance structures, conduct staff training on PF risks, and maintain detailed records of all risk assessments and mitigation measures for at least five years.