UAE at risk of landing on watchlist over money laundering

[NeonNinja]

The United Arab Emirates is not doing enough to prevent money laundering despite recent progress, and risks landing on an international watchlist, a global dirty-money watchdog - the Paris-based Financial Action Task Force (FATF) - said on Thursday.

The UAE, which includes the region's financial and commercial centre Dubai, will now be put under a year-long observation by FATF.

"The United Arab Emirates recently strengthened its legal framework to fight money laundering and terrorist financing but, as a major global financial centre and trading hub, it must take urgent action to effectively stop the criminal financial flows that it attracts," the FATF said in a statement.

The intergovernmental body said that major or fundamental improvements are required in 10 of 11 areas evaluated for preventing money laundering and the financing of "terrorism" and weapons of mass destruction.

"The UAE has achieved positive results in investigating and prosecuting the financing of terrorism," the FATF noted, "but its limited number of money laundering prosecutions and convictions, particularly in Dubai, are a concern given the country’s risk profile."

The watchdog said UAE authorities are not fully exploiting financial intelligence to root out money laundering or trace the proceeds of criminal financial transactions.

The report, which took 14 months to compile and involved a visit to the UAE in July, gave a "low" rating for investigation and prosecution of money laundering and a "moderate" rating for preventive measures and financial sanctions related to countering the financing of "terrorism".

If the UAE fails to improve, it could find itself alongside states such as Syria, Yemen and Pakistan, which the FATF deems to have "strategic deficiencies".

The UAE has tightened financial regulations in recent years to try to overcome a perception among some foreign investors that it is a hot spot for illicit money flows.

It passed a new anti-money laundering and terror financing law in 2018, and has also worked with the United States to apply sanctions to armed groups.

The FATF said authorities must close loopholes in the property and precious-metal sectors that can be exploited by professional money launderers.

It also urged the UAE to actively pursue international money laundering networks and improve formal cross-border cooperation.

The report also said there was a "noticeable absence" of consistent investigations and prosecutions for money laundering cases related to high-risk crimes and sectors deemed high-risk, such as money transfer.

Between 2013 and 2019, the UAE prosecuted 92 people and convicted 75 for "terrorism" financing activities, FATF said, while there were 50 prosecutions and 33 convictions in money laundering cases between 2013 and 2018.

Among those, Dubai had only 17 money laundering prosecutions over five years.

https://www.aljazeera.com/ajimpact/uae-risk-landing-watchlist-money-laundering-200430151520708.html

 

[Imran Khan]

its just risk man nothing too serious . they can handle it

 

[Trango Towers]

Muslims countries targeted again

 

[The Eagle]

UAE targeted for many reasons and that includes hosting Modi and company more than needed for business interests. These countries will learn but might be too late. Explore the case and people will find external elements involved in such crime while taking advantage of their hospitality. Honestly, UAE should have it coming. Just start to dig for culprits regardless of nationality, in the end you will find the most corrupt lot.

 

[HAIDER]

UAE targeted for many reasons and that includes hosting Modi and company more than needed for business interests. These countries will learn but might be too late. Explore the case and people will find external elements involved in such crime while taking advantage of their hospitality. Honestly, UAE should have it coming. Just start to dig for culprits regardless of nationality, in the end you will find the most corrupt lot.

Pakistan FIA and NAB filed request for some Pakistani foreign accounts info. Nothing handover by UAE govt. UAE is black money parking paradise. All hundi hawala business headquarter in Dubai.

 

[Blacklight]

UAE targeted for many reasons and that includes hosting Modi and company more than needed for business interests. These countries will learn but might be too late. Explore the case and people will find external elements involved in such crime while taking advantage of their hospitality. Honestly, UAE should have it coming. Just start to dig for culprits regardless of nationality, in the end you will find the most corrupt lot.

Bro, more details here:

UAE risks inclusion on financial watch list over money laundering
Financial Action Task Force said Gulf state not doing enough to stem dirty financial flows
Simeon Kerr in Dubai
April 30 2020


UAE must take increased measures to stamp out money laundering, the world’s main dirty money monitoring group has warned, or it risks inclusion on an international watch list.

The Financial Action Task Force on Thursday urged the Gulf state to prioritise the pursuit of international laundering networks, close loopholes in gold and property markets and work with international partners to tackle illegal financial flows.

If the UAE fails to take action in these areas within one year, the country could be placed on FAFT’s so-called “grey list” of 18 states that includes Yemen, Syria and Zimbabwe, in what would be a major blow to the country’s reputation as the Middle East’s main financial hub.

“Generally, fundamental and major improvements are needed across the UAE in order to demonstrate that the system cannot be used for money laundering and terrorist financing,” the Paris-based group said.

The multilateral body noted in its report that the Gulf state had performed better on preventing terrorist financing but said law enforcement agencies do not pursue significant laundering cases, especially in the country’s commercial hub of Dubai, where the risks are the greatest. The UAE’s finance ministry did not respond to a request for comment.

Dubai has successfully diversified its economy away from oil thanks to its openness and connectivity, but a buccaneering attitude to investment in property and commodities has also exposed the emirate to criminality.

Real estate is a safe haven for ill-gotten gains from across the globe, said Matthew Page, a scholar with the Carnegie Endowment for International Peace. “Kleptocrats, criminals and sanctioned individuals from around the world own Dubai property,” he said.

“In practice, these buyers can stash or launder cash in the UAE property market, no questions asked.” Last month, a former partner at international accountancy firm EY won $11m in damages in the UK after accusing his former employer of helping to cover up alleged gold smuggling and large-scale money laundering by a Dubai gold refiner, Kaloti Jewellery International. EY and Kaloti denied any wrongdoing.

The country’s international financial centres in Dubai and Abu Dhabi have developed a detailed understanding of money laundering and terrorist financing risks, the FATF’s report said. But there is less effective supervision of activity across the rest of the country, including in around 30 commercial free zones that allow foreign corporate ownership to boost investment.

The UAE also has a “fragmented system” of 39 separate corporate registries with varying requirements on the disclosure of beneficial ownership, leading to a high risk of criminals misusing entities for money laundering or terrorist financing, the report said. Recommended Libya UAE groups implicated in suspected violation of Libyan arms embargo

“It will be challenging to bring all parties together to work towards fighting financial crime,” said Bhavin Shah, who leads the financial services division for global consulting firm Roland Berger in Dubai. “It is not just the banks and the regulators, we need customs, judiciary, prosecution, and even private sector working together — this needs to become a national priority. I believe this is do-able.”

While the UAE has taken significant steps to strengthen regulations against money laundering and terrorist financing with the enactment of new legislation in 2018 and 2019, the report questioned the effectiveness of the new regime, particularly with respect to anti-money laundering.

In contrast, the Gulf state’s actions against terrorist financing has been effective, according to the task force. The UAE increased oversight of its remittance system after it was used by al-Qaeda to help finance the September 11 attacks in 2001. The country is still exposed to terrorist financing risks because of regional political turmoil and the large presence of foreign nationals from countries with active terrorist organisations, the report said, but the authorities have made significant steps in pursuing such activity.

“Terrorist financing offences and activities are investigated and prosecuted to a large extent, and the role of the terrorist financier is generally identified,” it said.

@Mangus Ortus Novem Bro, remember what I said about real estate investments, on this topic earlier.

 

[Crusher]

UAE targeted for many reasons and that includes hosting Modi and company more than needed for business interests. These countries will learn but might be too late. Explore the case and people will find external elements involved in such crime while taking advantage of their hospitality. Honestly, UAE should have it coming. Just start to dig for culprits regardless of nationality, in the end you will find the most corrupt lot.

Either UAE Arabs pretend to be "unaware" of all the money laundering going on the soil of their country or they are fully complacent in this fiasco to reap the economic benefits out it. Everyone in Pakistan knows that many corrupt elements of Pakistan have been laundering their illegitimate money from Pakistan to UAE in their so-called "real-estate" sector which is the haven to launder the money to UAE in the name of foreign direct "investment".

 

[The Eagle]

Either UAE Arabs pretend to be "unaware" of all the money laundering going on the soil of their country or they are fully complacent in this fiasco to reap the economic benefits out it. Everyone in Pakistan knows that many corrupt elements of Pakistan have been laundering their illegitimate money from Pakistan to UAE in their so-called "real-estate" sector which is the haven to launder the money to UAE in the name of foreign direct "investment".

The later part seems to be true. .... they being aware but silence was due to means of national interest. On other hand, culprits took full advantage. How can I miss to recall that how media houses owns headquarters in Dubai and they are paid accordingly for driven agenda. Yes, I agree on part when Pakistan did try to hand us the culprits hiding in dubai and even the money being stashed there.

The world is an interesting circle of circumstances coming to everyone. Once our need, the other denies will eventually haunt the party some day. They kept quiet and that wasn't wise to do.

UAE laundering and gold business reminds me of Khanani.& Kalia or even ARY Gold Business. It's just matter of time when things will get real. Anyone that supports laundered money and culprits, will have to face consequences and above all, it has to be an Islamic Country that may somehow irk bigger propagandists. Anti Islamophobia drive and not fighting the war that US wanted, are major reasons.

Bro, more details here:

UAE risks inclusion on financial watch list over money laundering
Financial Action Task Force said Gulf state not doing enough to stem dirty financial flows
Simeon Kerr in Dubai
April 30 2020


UAE must take increased measures to stamp out money laundering, the world’s main dirty money monitoring group has warned, or it risks inclusion on an international watch list.

The Financial Action Task Force on Thursday urged the Gulf state to prioritise the pursuit of international laundering networks, close loopholes in gold and property markets and work with international partners to tackle illegal financial flows.

If the UAE fails to take action in these areas within one year, the country could be placed on FAFT’s so-called “grey list” of 18 states that includes Yemen, Syria and Zimbabwe, in what would be a major blow to the country’s reputation as the Middle East’s main financial hub.

“Generally, fundamental and major improvements are needed across the UAE in order to demonstrate that the system cannot be used for money laundering and terrorist financing,” the Paris-based group said.

The multilateral body noted in its report that the Gulf state had performed better on preventing terrorist financing but said law enforcement agencies do not pursue significant laundering cases, especially in the country’s commercial hub of Dubai, where the risks are the greatest. The UAE’s finance ministry did not respond to a request for comment.

Dubai has successfully diversified its economy away from oil thanks to its openness and connectivity, but a buccaneering attitude to investment in property and commodities has also exposed the emirate to criminality.

Real estate is a safe haven for ill-gotten gains from across the globe, said Matthew Page, a scholar with the Carnegie Endowment for International Peace. “Kleptocrats, criminals and sanctioned individuals from around the world own Dubai property,” he said.

“In practice, these buyers can stash or launder cash in the UAE property market, no questions asked.” Last month, a former partner at international accountancy firm EY won $11m in damages in the UK after accusing his former employer of helping to cover up alleged gold smuggling and large-scale money laundering by a Dubai gold refiner, Kaloti Jewellery International. EY and Kaloti denied any wrongdoing.

The country’s international financial centres in Dubai and Abu Dhabi have developed a detailed understanding of money laundering and terrorist financing risks, the FATF’s report said. But there is less effective supervision of activity across the rest of the country, including in around 30 commercial free zones that allow foreign corporate ownership to boost investment.

The UAE also has a “fragmented system” of 39 separate corporate registries with varying requirements on the disclosure of beneficial ownership, leading to a high risk of criminals misusing entities for money laundering or terrorist financing, the report said. Recommended Libya UAE groups implicated in suspected violation of Libyan arms embargo

“It will be challenging to bring all parties together to work towards fighting financial crime,” said Bhavin Shah, who leads the financial services division for global consulting firm Roland Berger in Dubai. “It is not just the banks and the regulators, we need customs, judiciary, prosecution, and even private sector working together — this needs to become a national priority. I believe this is do-able.”

While the UAE has taken significant steps to strengthen regulations against money laundering and terrorist financing with the enactment of new legislation in 2018 and 2019, the report questioned the effectiveness of the new regime, particularly with respect to anti-money laundering.

In contrast, the Gulf state’s actions against terrorist financing has been effective, according to the task force. The UAE increased oversight of its remittance system after it was used by al-Qaeda to help finance the September 11 attacks in 2001. The country is still exposed to terrorist financing risks because of regional political turmoil and the large presence of foreign nationals from countries with active terrorist organisations, the report said, but the authorities have made significant steps in pursuing such activity.

“Terrorist financing offences and activities are investigated and prosecuted to a large extent, and the role of the terrorist financier is generally identified,” it said.

@Mangus Ortus Novem Bro, remember what I said about real estate investments, on this topic earlier.

Pakistan FIA and NAB filed request for some Pakistani foreign accounts info. Nothing handover by UAE govt. UAE is black money parking paradise. All hundi hawala business headquarter in Dubai.

 

[Blacklight]

The later part seems to be true. .... they being aware but silence was due to means of national interest. On other hand, culprits took full advantage. How can I miss to recall that how media houses owns headquarters in Dubai and they are paid accordingly for driven agenda. Yes, I agree on part when Pakistan did try to hand us the culprits hiding in dubai and even the money being stashed there.

The world is an interesting circle of circumstances coming to everyone. Once our need, the other denies will eventually haunt the party some day. They kept quiet and that wasn't wise to do.

UAE laundering and gold business reminds me of Khanani.& Kalia or even ARY Gold Business. It's just matter of time when things will get real. Anyone that supports laundered money and culprits, will have to face consequences and above all, it has to be an Islamic Country that may somehow irk bigger propagandists. Anti Islamophobia drive and not fighting the war that US wanted, are major reasons.

Pakistan FIA and NAB filed request for some Pakistani foreign accounts info. Nothing handover by UAE govt. UAE is black money parking paradise. All hundi hawala business headquarter in Dubai.

UAE hands over data of Pakistanis given residence permits
October 12, 2019

@The Eagle Why is it that nutcases work over time on this forum, to spread dis-info are not reprimanded?

Btw do you remember by who, and why, Khanani.& Kalia's owner was silenced forever?

 

[The Eagle]

No personal attacks please. A qualitative argument warrants debate with logic and rebuttal.

Regards,

 

[MM_Haider]

is it because India is angry on expulsion of its RSS goons from UAE? India is notorious of using FATF as weapon to use against rivals..
https://www.wilsoncenter.org/blog-post/india-uae-spat-cautionary-tale-new-delhi

 

[Safriz]

Si after UAE backlash against Indian fascists ragtime, they are pressurising UAE.

 

[Blacklight]

is it because India is angry on expulsion of its RSS goons from UAE? India is notorious of using FATF as weapon to use against rivals..
https://www.wilsoncenter.org/blog-post/india-uae-spat-cautionary-tale-new-delhi

or maybe this:

UAE hands over India's most wanted terrorist to Pakistan

 

[AZADPAKISTAN2009]

Indian mafia UAE need to boot out all indians

 

[HAIDER]

UAE hands over data of Pakistanis given residence permits
October 12, 2019

@The Eagle Why is it that nutcases work over time on this forum, to spread dis-info are not reprimanded?

Btw do you remember by who, and why, Khanani.& Kalia's owner was silenced forever?

Dear, its financial data no one is interested in permit. Banking transactions. Real estate ownership records. Millions of dollar Ayan Ali transactions