The Central Bank of the UAE (CBUAE) has issued new anti-money laundering and counter-terrorism financing (AML/CFT) guidance to Registered Hawala Providers (RHP) and Licensed Financial Institutions (LFIs) that provide services to hawala providers.

The new guidance, which went into effect on August 18, 2021, will help RHPs and LFIs understand and effectively implement their statutory AML/CFT obligations, as outlined in Federal Decree-Law No. (20) of 2018 on AML/CFT and Cabinet Decision No. (10) of 2019. The CBUAE stated in a statement that this guidance also takes Financial Action Task Force (FATF) standards and guidance into account.

The UAE central bank allows legitimate Hawala activity, viewing it as a critical component in bringing the unbanked segment of the population into the regulated financial system.

Hawala is governed by the CBUAE's Registered Hawala Providers Regulation, which was issued in 2019. All providers engaging in Hawala activity in the UAE must have a central bank-issued Hawala provider certificate.