Business Development Director at Mozn, Hanan Alqahtani
Doha: Over the years, Qatar has made momentous strides in addressing issues related to financial crimes across areas such as anti-money laundering (AML) and counter-terrorism financing (CTF).
The country’s commitment to combating these issues is evident through several key regulatory initiatives. Qatar introduced a robust legal framework, defining the powers and responsibilities of various ministries and government agencies, which enhanced the country’s role in this area, said an official.
Speaking to The Peninsula, Business Development Director at Mozn, Hanan Alqahtani stressed that Qatar has made amendments to several laws related to AML and CTF, aligning its regulatory practices with international standards, including those advanced by the Financial Action Task Force (FATF).
She noted that the Qatar Central Bank (QCB) has also been proactive, establishing a Financial Crimes Compliance Department and adopting a risk-based supervision (RBS) approach.
“This strategy enhances the monitoring of financial crime risks and ensures institutions are well-equipped to address challenges,” Alqahtani said.
She highlighted that the country has embraced financial technology (FinTech) innovations, integrating advanced tools to develop compliance and efficiency in combating financial crimes.
He said, “These measures position Qatar as a leader in fostering a secure and resilient financial ecosystem.”
Financial institutions in Qatar are “deeply committed” to adhering to Qatar’s strict anti-money laundering and counter-terrorism financing regulations.
Alqahtani underscored that “Compliance begins with robust Customer Due Diligence (CDD) and Know Your Customer (KYC) practices, ensuring that customer identities are verified, risk profiles assessed, and business purposes established. For high-risk individuals or politically exposed persons (PEPs), enhanced due diligence measures are mandatory.”
However, to make sure that suspicious activities are identified, financial institutions in Qatar have started deploying AI-powered sophisticated Transaction Monitoring Systems.
The industry leader stated that these automated systems are configured to detect unusual patterns, such as structuring or rapid fund transfers.
“When anomalies are detected, institutions file Suspicious Transaction Reports with the Qatar Financial Information Unit(QFIU), ensuring authorities are alerted without tipping off the customers. Artificial intelligence further enhances these systems by analyzing vast datasets and identifying complex patterns of illicit activity, while sanctions screening tools cross-check customer data against global watchlists in real-time,” she said.
The market expert elucidated that companies have adopted a ‘Risk-Based Approach’ to categorise customers and transactions by their risk levels, enabling focused monitoring of high-risk accounts.
Tools for data analytics and visualization help institutions uncover hidden networks of fraudulent activities.
Regular audits and compliance reviews by the QCB further reinforce accountability and adherence to regulations.
“The combination of a strong legal framework, advanced detection systems, and collaborative efforts with regulators and international partners ensures Qatar’s financial institutions are well-equipped to mitigate the risks of money laundering and terrorism financing. These measures not only safeguard the integrity of Qatar’s financial sector but also reinforce the country’s commitment to upholding international financial security standards,” she said.
Hanan Alqahtani took part in the IDC Qatar CIO Summit 2024, emphasising the need to stay ahead of emerging financial crime risks in the rapidly evolving landscape of digital financial services and cybersecurity.
She pointed out that a multi-faceted approach is essential such as adapting regulatory frameworks to address new threats, investing in advanced technologies, fostering collaboration among key stakeholders, and cultivating a culture of awareness and compliance across the financial ecosystem.
She further added “Regulators must ensure that laws and guidelines remain agile, enabling them to respond effectively to novel challenges. Similarly, financial institutions should deploy cutting-edge tools, such as artificial intelligence and predictive analytics, to identify and mitigate risks proactively. By automating compliance processes like KYC and customer due diligence, institutions can improve efficiency and minimize errors, further enhancing their defenses.”
