The fifth Abu Dhabi Forum for Justice Partners, organized by the Abu Dhabi Judicial Department, discussed the legal system surrounding virtual currencies and their risks, as well as mechanisms to combat their use in money laundering and terrorist financing, alongside the obligations of legal professionals concerning these crimes in light of the United Arab Emirates' national legislation and international best practices. The forum, held at the department's main headquarters via video conference, witnessed broad participation from lawyers registered with the Department's Legal Affairs Administration, and representatives from national and international law and consulting firms. This reflects the importance of partnership with lawyers as strategic judicial partners, in line with the vision of the Deputy Prime Minister, Sheikh Mansour bin Zayed Al Nahyan, to establish a judicial system that enhances community and economic protection from crime-related impacts and achieves globally high-quality justice, thereby contributing to the competitiveness of Abu Dhabi and supporting its global status in attracting foreign investment and ease of doing business.
The forum covered definitions of types of virtual currencies and their associated risks, the blockchain technology related to these currencies, the future of virtual currencies and their impact on the global economy, fraudulent methods of using these currencies for money laundering and financing terrorism, the role of international and national regulatory bodies in combating such crimes, and the UAE’s efforts to confront money laundering, including the legislative frameworks it has established for this purpose, as well as key international agreements and treaties signed by the country.
Moreover, the forum highlighted the nature of money laundering crimes, their elements, and their historical foundations, as well as the obligations on financial institutions and specified non-financial business sectors as per national legislation against money laundering. It addressed the relationship between virtual currencies and financial crimes, the nature of cryptocurrencies in relation to money laundering and terrorist financing, how to identify suspicious transactions involving virtual currencies, and the importance of implementing programs to combat such crimes by building and enhancing internal controls and training for risk assessment through scenario-based practices to improve practical skills and analyze cases.
Additionally, the forum discussed the obligations and responsibilities of lawyers and legal professionals, underlining the importance of balancing client confidentiality with ethical standards in combating financial crimes and reporting in case of suspicion, as well as conducting due diligence on clients in the context of virtual currencies, alongside staying informed about the challenges posed by new and modern technologies.
