Crackdown on financial crime in the year ahead: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) made developing regulatory frameworks in sustainable finance and digital assets a top priority in its Business Plan for 2024.

Meeting FATF recommendations: The push towards stronger regulation comes after the Financial Action Task Force (FATF) placed the country on its gray list, over suspicions of money laundering and the financing of terrorism. The plan commits the FSRA to be tougher on financial and cybercrime to further improve the UAE’s standing with the FATF. Specialized supervision and enforcement departments will also impose sanctions to ensure compliance with the regulations.

More FinTech: The FSRA will promote the adoption of previously adopted digital transformation solutions including FinTech, RegLab, and Digital Lab, which leverage technology to provide a user-friendly and efficient regulatory environment. The FSRA plans to collaborate with government-backed tech centers, such as Hub71, to spur the transformation while integrating decentralized finance technologies into its platforms.

Greener finance: Piggybacking off its success in regulating ADGM’s environmental instruments last year, the FSRA will implement a sustainable finance regulatory framework covering funds, discretionary managed portfolios, bonds, and sukuk. The framework will “greenify” the instruments, launching green funds, climate transition funds, and green bonds and sukuks to transition the UAE to a low-carbon economy, in line with net zero transition targets.

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