DFSA links up with UAE authorities to strengthen auditing framework

The Dubai Financial Services Authority (DFSA) and the UAE Ministry of Economy and Tourism have signed a memorandum of understanding aimed at enhancing cooperation and information sharing around oversight of auditors and designated non‑financial businesses and professions (DNFBP).

The agreement brings DNFBPs that are exposed to money laundering risk more firmly within a framework of coordinated supervision, particularly in areas exposed to money laundering and terrorism financing risk. These include sole practitioner lawyers, accountants and other designated roles, such as precious metal dealers and company service providers.

The MoU establishes a framework for coordinated supervision between the DFSA and the UAE government as they look to focus on financial crime prevention and terrorism financing.

Marie Chowdhry, a financial regulation expert with Pinsent Masons in Dubai, said the agreement represented a further step toward more coordinated and integrated regulatory oversight across the UAE.

“While the agreement does not introduce new legal obligations in itself, it strengthens the framework for information sharing and supervisory cooperation in respect of auditors and DNFBPs,” she explained.

“For firms operating in or interacting with the Dubai International Financial Centre (DIFC), this development highlights the importance of maintaining robust governance, audit quality and AML/CFT systems that are aligned not only with DFSA requirements but also with wider federal regulatory expectations.

“Increased cooperation between regulators can lead to greater consistency in supervision and enforcement, as well as heightened scrutiny where issues of transparency or financial crime risk arise.”

The agreement signals closer coordination between federal authorities and the DFSA, which may result in enhanced supervisory expectations, increased information sharing, and more coordinated regulatory scrutiny.

Jessica White, a regulatory expert with Pinsent Masons in Dubai, said: “The agreement places greater emphasis on firms taking a proactive approach to compliance with applicable regulatory requirements.”

“Auditors and DNFBPs should consider reviewing their compliance frameworks, internal controls, and risk assessment processes to ensure they are well‑positioned to respond to information requests or supervisory engagement from multiple authorities,” she said.

“More broadly, the MoU reinforces the UAE’s focus on regulatory integrity and its continued alignment with international standards, supporting investor confidence and the long‑term growth of the financial services sector in the DIFC and across the UAE.”