UAE at risk of landing on watchlist over money laundering

[HAIDER]

They have a vested interest in allowing money to flow in, which ends up getting invested in properties and businesses ... not asking questions about that money is beneficial from that perspective.

Most recent...

UAE doing too little to stem money laundering and terrorist finance: watchdog

Alexander Cornwell
3 MIN READ


DUBAI (Reuters) - The United Arab Emirates is not doing enough to prevent money laundering despite recent progress, and causing concerns about its ability to combat financing of terrorism, the global dirty money monitoring group said on Thursday.

The U.S.-allied Gulf state, which includes the region’s financial and commercial centre Dubai, will now be put under a year-long observation by the Paris-based Financial Action Task Force (FATF).

The intergovernmental body said in a report 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 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 may 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.


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 Islamist militant groups.

FATF said the UAE had an “emerging understanding” of its risks related to money laundering and terrorism financing, and a “high level of commitment” to better understand and mitigate them.

The watchdog said authorities must close loopholes in the property and precious metal sectors that can be exploited by professional money launderers. They should also strengthen the use of financial intelligence in money laundering cases and in the recovery of proceeds of crime, it said.

It also urged the UAE actively to 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.

Reporting by Alexander Cornwell; Editing by Kevin Liffey

 

[ali_raza]

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.

ohh i know kalotis
we deal with them.
problem is people in the whole world knows very less about gold business
its just an art perfected by indians and more then them pakistanis

 

[Blacklight]

Most recent...

UAE doing too little to stem money laundering and terrorist finance: watchdog

Alexander Cornwell
3 MIN READ


DUBAI (Reuters) - The United Arab Emirates is not doing enough to prevent money laundering despite recent progress, and causing concerns about its ability to combat financing of terrorism, the global dirty money monitoring group said on Thursday.

The U.S.-allied Gulf state, which includes the region’s financial and commercial centre Dubai, will now be put under a year-long observation by the Paris-based Financial Action Task Force (FATF).

The intergovernmental body said in a report 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 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 may 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.


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 Islamist militant groups.

FATF said the UAE had an “emerging understanding” of its risks related to money laundering and terrorism financing, and a “high level of commitment” to better understand and mitigate them.

The watchdog said authorities must close loopholes in the property and precious metal sectors that can be exploited by professional money launderers. They should also strengthen the use of financial intelligence in money laundering cases and in the recovery of proceeds of crime, it said.

It also urged the UAE actively to 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.

Reporting by Alexander Cornwell; Editing by Kevin Liffey

Link to OP? Date?

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

This case is a prime example of our justice system in action. No repercussions, for her or for Zardari.