ADGM’s latest review monitors money laundering risks across 12,302 legal structures.
Dubai: ADGM has revised its money laundering and terrorist financing risk assessment for legal persons and arrangements following a 72% increase in registered structures in the Abu Dhabi financial centre over two years.
The number of legal persons and arrangements operating in ADGM rose to 12,302 at the end of March 2026, up from 7,173 when the previous assessment was issued in March 2024.
The updated assessment provides ADGM with a more detailed understanding of financial crime risks across various legal structures, including how those risks evolve as the jurisdiction expands in size, complexity, and international activity.
Increased scrutiny alongside growth
The 2026 update revises ADGM’s initial legal persons and arrangements risk assessment, published in March 2024. The regulator noted that the growing LPA population has a direct impact on risk exposure, as well as on supervisory priorities and enforcement focus.
The assessment is aligned with the UAE National Risk Assessment and provides an ADGM-specific view of money laundering and terrorist financing risks. It is intended to support licensing decisions, ongoing monitoring, inspection planning, thematic supervisory work, and enforcement actions where red flags are identified.
The review also aims to help financial institutions, company service providers, virtual asset service providers, and other regulated entities assess customer risk more effectively.
Risk profile remains stable
ADGM stated that 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 incorporates the latest insights from the UAE National Risk Assessment and reflects strengthened controls within ADGM, including enhanced beneficial ownership transparency, tighter supervision of gatekeepers, increased inspection activity, and broader enforcement capabilities.
The regulator said that changes in individual risk ratings should be interpreted as the result of more precise analysis rather than a weakening of controls or a significant shift 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 at a time when international financial centres are facing increased scrutiny over beneficial ownership 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 day-to-day regulatory work.
Its findings will inform incorporation and commercial licensing applications, reviews of existing entities, inspection priorities, and targeted enforcement actions.
The document will also help firms dealing with ADGM legal persons and arrangements to calibrate due diligence, identify higher-risk structures, and assess behaviours that may require enhanced checks.
