The combined financial crime compliance costs in the United Arab Emirates (UAE) and Saudi Arabia increased significantly in 2023, reaching an estimated US$1.8 billion last year, a new research commissioned by LexisNexis Risk Solutions found.
The findings, shared in a report titled “True Cost of Financial Crime Compliance Study – Europe, the Middle East, and Africa”, underscores the regulatory pressures and challenges faced by financial institutions in these regions.
In the UAE and Saudi Arabia, a staggering 98% of the decision-makers polled experienced increased financial crime compliance costs last year, with labor (>70%), technology (>74%) and external costs related to outsourcing (75%) identified as the biggest cost driver to rising compliance costs.

Respondents identified trade-based money laundering schemes (UAE: 59, Saudi Arabia: 61%), supply chain disruptions (UAE: 54%) and bribery within supply chains (Saudi Arabia: 57%) as growing concerns, indicating a shifting focus on international trade.
Financial crime compliance in EMEA
Across the broader EMEA region, financial crime compliance costs totaled US$85 billion in 2023, with Germany (US$32.5 billion), France (US$25.3 billion) and the Netherlands (US$12 billion) leading the expenditure.

Key factors driving the escalation of compliance costs include heightened financial crime regulations and regulatory expectations (35%), increased requirement for automation, data and tools to support financial crime compliance (32%), and evolving criminal threats (29%).

Interestingly, technologies like cryptocurrencies, digital payments, and artificial intelligence (AI), once seen as catalysts for progress, are now proving to be tools for illicit activities. When asked about the types of financial crime financial institutions had observed significant increases of more than 20% in the past 12 months, 25% of companies identified financial crime involving digital payments, while 23% reported heightened use of both cryptocurrencies and AI.

To reduce costs while complying with regulations, financial institutions in EMEA are prioritizing harnessing enriched payment data to improve the effectiveness and efficiency of compliance controls (80%). Respondents also highlighted optimizing their compliance costs (81%) as a key priority to improve profitability, remain agile in adapting to evolving regulatory requirements and gain a competitive advantage in the market.
Financial crime in the UAE and Saudi Arabia
Financial crime poses one of the largest systemic risks to the global economy. The estimated annual cost of money laundering and associated crimes stands between US$1.4 trillion and US$3.5 trillion, and an average large bank spends US$1 billion annually trying to combat them, according to EY.
In Saudi Arabia, LexisNexis Risk Solutions estimates that financial crime generates between US$12-US$32 billion annually in illegal proceeds. To address this, the government has reinforced anti-money laundering (AML) and counter-financing of terrorism (CFT) laws as the country builds toward Vision 2030, its national development strategy designed to reduce oil dependence, diversify income sources and bolster competitiveness.

In the UAE, the Executive Office of the Anti-Money Laundering and Countering the Financing of Terrorism (EO AML/CTF) was set up in 2021 to oversee the implementation of the UAE’s National AML/CFT Strategy and National Action Plan (NAP).

The agency made significant strides in 2023, including the conclusion of new Mutual Legal Assistance Treaties, bringing the total to 45, and bilateral visits to over 20 countries and agencies. The UAE also became the first Arab country to join as an observer the Asia/Pacific Group on Money Laundering, a Financial Action Task Force-Style regional body (FSRB).
The total value of AML/CFT fines imposed by the UAE’s supervisory authorities from January to October 2023 exceeded AED 249 million (US$67.8 million), up from AED 76 million (US$20.7 million) in 2022, representing more than a three-fold increase.
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