In light of rapid growth in the number of LPAs within Abu Dhabi Global Market (ADGM), ADGM has published its 2026 Money Laundering and Terrorist Financing Risk Assessment of Legal Persons and Arrangements (LPA). The 2026 LPA Risk Assessment marks a significant update. This is the first since ADGM released the assessment in March 2024.
Since 2024, ADGM’s population of LPAs has risen from 7,173 in 2024 to 12,302 by the end of March 2026. This represents a 72% increase. In light of this development, ADGM felt the need to conduct a more thorough analysis of financial crime risks in its jurisdiction.
New ADGM 2026 LPA Risk Assessment Released
The new ADGM 2026 LPA Risk Assessment offers a unique jurisdiction-specific assessment of ML/TF risks associated with different legal structures in ADGM.
As per ADGM, the new LPA Risk Assessment will enable the regulator to further enhance its risk-based approach to regulation, supervision, licensing, enforcement, and ongoing monitoring. Furthermore, the assessment also takes into account developments related to the UAE National Risk Assessment. This helps to strengthen the country’s overall financial crime risk framework.
Overall ML/TF Risk Profile Stable
Despite the sharp increase in the number of LPAs in ADGM, the authority said the overall ML/TF risk profile remains largely stable compared with the 2024 assessment.
ADGM attributed the revised assessment findings to several improvements. These include greater transparency in beneficial ownership, stronger supervision of gatekeepers, more inspections, and tougher enforcement measures. The authority also said the updated risk ratings reflect more accurate analysis rather than weaker controls.
What Makes the 2026 LPA Risk Assessment Important?
The updated LPA Risk Assessment serves as a vital reference document in the regulatory and supervisory activities of ADGM. Findings of the assessment will guide applications for incorporation and commercial licensing. They will also guide ongoing monitoring, inspection planning, thematic reviews, and enforcement actions where risk indicators are detected.
The report will also serve as an important source of information for financial institutions, company service providers, virtual asset service providers, DNFBPs, and all other entities doing business with or in ADGM.
ADGM Reinforces Commitment to Financial Integrity
Speaking about the publication of the new LPA Risk Assessment, H.E. Ahmed Jasim Al Zaabi, Chairman of ADGM, stated that the updated LPA Risk Assessment reflects ADGM’s commitment to protecting the integrity of its jurisdiction. This is in line with the UAE’s national priorities.
The updated report is yet another confirmation of ADGM’s status as an international financial centre with a focus on strong regulation, transparency, and preventing financial crime risks.
