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New law to counter terrorism on the anvil

Speaking on the organisational structure of the UAE FIU and AMLSCU at the ongoing Regional Seminar for Representatives of South Asian Countries on establishing a Financial Intelligence Unit, FIU, Mr Awadi said that the proposed counter-terrorism legislation will have a separate provision to cover the responsibilities of legal entities and will criminalize all offences relating to the financing of terrorism. There will be further provisions in the proposed counter-terrorism law, which will detail the measures available for confiscation of property used in the financing of terrorism, he said.

The official said that the UAE has a number of mechanisms in place to help combat terrorism and the criminal exploitation of its financial system. The supervision of the UAE banking sector falls under the authority of the Central Bank.

The Central Bank of the UAE has a full-fledged Banking Supervision and Examination Department responsible for off-site monitoring and on-site examination of banks and other financial institutions licensed by the Central Bank.

The Central Bank of the UAE is empowered to issue freeze orders on funds anywhere in the financial system in the UAE, and to monitor accounts which may be used to facilitate terrorism, placing obligations on people and financial institutions to report any suspicious transaction, he said.

Our reporter adds: Mr Awadi said the UAE has accorded full cooperation to the investigators from Germany, the UK, Portugal, Turkey and FinCen besides United Nations to carry-out their investigations as part of its resolve against money laundering, an official said.

"The UAE has extended full support and cooperation both to the UN and US authorities in the efforts to track down the accounts of terrorists and those who assist them, and continues to do so."

He said that in accordance with UN Security Council Resolutions, the country has frozen accounts of certain individuals and organisations.

"Reports have been compiled and forwarded to the UN, as the UAE strongly supports international cooperation, enhanced mutual understanding and effective measures for tracking terrorist financing and money laundering," he said.

Mr Awadi said that the UAE has devised number of effective mechanisms, which are extremely helpful to combat terrorism and the criminal exploitation of its financial system. Mr Awadi said that the Central Bank has set a ceiling a Dh40000 for the amount that may be brought into the country in cash or equivalent without the need for declaration.

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