Financial institutions across the Gulf are facing a rapid escalation in regulatory demands as artificial intelligence accelerates the scale and sophistication of cybercrime. With deepfake fraud operations rising by 1,300% globally in 2024, operational stability is no longer just an IT contingency—it is a strict regulatory mandate. As governments implement stringent new rules, regional tech players like Riyadh-based enterprise AI company Mozn are stepping in to help financial services navigate this complex compliance environment.
Quick Facts
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Deepfake-driven fraud operations surged 1,300% globally in 2024.
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UAE and Saudi Arabia introduced sweeping new compliance regulations.
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Mozn’s FOCAL platform reduces fintech fraud by up to 90%.
Adapting to Anti-Money Laundering Frameworks in the UAE
Governments are aggressively updating their rulebooks to counter the growing accessibility of high-impact social engineering schemes. In the United Arab Emirates, regulators issued an anti-financial crime upgrade in September 2025 targeting crypto-related fraud, cross-border scams, and complex money laundering operations.
This framework expands the regulatory scope to cover digital systems and virtual assets, directly aligning the UAE with Financial Action Task Force (FATF) standards.
Companies operating within the jurisdiction now face rigorous obligations. Financial entities must deploy risk-based anti-money laundering (AML) programs, conduct extensive know-your-customer (KYC) processes, and establish continuous transaction monitoring.
Furthermore, institutions are required to maintain accurate Ultimate Beneficial Ownership (UBO) records and establish protocols for rapidly reporting suspicious activities.
Saudi Arabia Advances Data Protection with SDAIA Controls
A parallel regulatory tightening is underway in Saudi Arabia. In April 2025, the Saudi Data and Artificial Intelligence Authority (SDAIA) released two critical draft documents to structure and expand the national data protection framework.
The proposed amendments to the Implementing Regulations of the Personal Data Protection Law clarify internal processing obligations for businesses.
Simultaneously, a new set of Draft Controls governs commercial, professional, and non-profit activities. These controls target external actors operating within the data protection sector, including consultants, event organizers, and training providers.
Businesses must now document exactly how and why they process personal data. They are required to demonstrate ongoing accountability across the entire data lifecycle, extending compliance responsibilities to any organization operating within the broader personal data network.
Defending the Ecosystem Against Deepfakes and Vulnerabilities
As AI generation tools enable criminals to execute highly realistic synthetic video and audio attacks, financial stakeholders are bracing for tighter oversight. A 2025 report by cybersecurity firm Fortinet surveyed over 550 operational technology professionals, revealing that 66% expect additional regulations within the next five years.
To survive this heightened scrutiny, institutions must proactively identify vulnerabilities within their critical services and measure exact disruption tolerance levels.
System interconnectivity presents a distinct vulnerability. Modern financial ecosystems rely heavily on open banking, tokenization, aggregations, and cloud application programming interfaces (APIs). A failure in one node can trigger rapid cascading outages. Banks are now compelled to ensure new mobile applications and AI integrations operate securely alongside legacy systems without risking service downtime.
Scaling AI and Cloud Security Across GCC Financial Services
Financial institutions are increasingly turning to cloud infrastructure and AI to manage these sprawling compliance burdens. According to a 2025 PwC report, the Middle East’s cloud services market is projected to reach $10.05 billion by 2027, growing at a 15% compound annual growth rate.
A McKinsey cybersecurity survey confirms this adoption trajectory, noting that 84% of financial services respondents view cloud and edge computing as highly relevant, with six in ten reporting that over 25% of their workloads currently reside in the cloud.
Applied AI is following closely behind, particularly for financial crime detection and risk modeling. Riyadh-based Mozn developed FOCAL, an AI-powered compliance and fraud prevention platform that integrates directly into existing banking architecture.
FOCAL currently services a broad client base of traditional banks, digital banks, electronic money institutions (EMIs), and payment companies. According to Mozn co-founder Malik Alyousef, major EMI clients utilizing the platform have successfully reduced fraud incidents by up to 90%.
About Mozn
Mozn is a Riyadh-based enterprise AI company specializing in advanced compliance and fraud prevention technology. Its flagship platform, FOCAL, empowers banks, fintechs, and financial service providers to detect money laundering, mitigate financial crime, and ensure strict regulatory adherence across the Middle East.
Source: Fintech News Middle East
