ADGM updates money laundering risk checks for legal entities

Dubai: ADGM has updated its money laundering and terrorist financing risk assessment for legal persons and arrangements after the number of registered structures in the Abu Dhabi financial centre rose 72% in two years.

The number of legal persons and arrangements operating in ADGM reached 12,302 at the end of March 2026, compared with 7,173 when the previous assessment was published in March 2024.

The updated assessment gives ADGM a more detailed view of financial crime risks across different legal structures, including how those risks may change as the jurisdiction grows in size, complexity and international activity.

Growth brings closer scrutiny

The 2026 update revises ADGM’s first legal persons and arrangements risk assessment, which was issued in March 2024. The regulator said the expansion of the LPA population has a direct bearing on risk exposure, supervisory priorities and enforcement focus.

The assessment is aligned with the UAE National Risk Assessment and gives an ADGM-specific view of money laundering and terrorist financing risks. It is designed to support licensing decisions, ongoing monitoring, inspection planning, thematic supervisory work and enforcement action where warning signs are identified.

The review is also intended to help financial institutions, company service providers, virtual asset service providers and other regulated firms assess customer risk more effectively.

Risk profile remains stable

ADGM said the overall money laundering and terrorist financing risk profile of its legal persons and arrangements remains broadly stable compared with the 2024 assessment.

The updated review reflects the latest national intelligence in the UAE National Risk Assessment, while also taking account of stronger controls within ADGM. These include improvements in beneficial ownership transparency, closer supervision of gatekeepers, higher inspection activity and wider enforcement tools.

Changes in individual risk ratings should be read as a result of more precise analysis, the regulator said, instead of a weakening of controls or a major change in the underlying risk environment.

“The 2026 update of our LPA Risk Assessment reflects a rigorous, evidence-based approach to identifying and mitigating money laundering and terrorist financing risks across our ecosystem," said Ahmed Jasim Al Zaabi, Chairman of ADGM. "Through this work, ADGM continues to support a robust, transparent and resilient financial centre, underpinned by strong regulation and effective international cooperation.”

The update comes as international financial centres face closer scrutiny over beneficial ownership, corporate transparency and the use of complex structures to move or conceal funds.

Tool for firms and supervisors

ADGM said the assessment is an operational tool used in daily regulatory work.

Its findings will guide incorporation and commercial licensing applications, reviews of existing entities, inspection priorities and targeted enforcement activity.

The document will also help firms engaging with ADGM legal persons and arrangements calibrate due diligence, identify higher-risk structures and assess behaviours that may require enhanced checks.