UAE issues law to curb money laundering, terror financing

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UAE issues law to curb money laundering, terror financing

Abu Dhabi - The law also counters financing of terrorist operations and suspicious organisations.

By WAM

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Published: Mon 29 Oct 2018, 11:00 PM

Last updated: Wed 31 Oct 2018, 9:54 AM

A new law to combat money laundering and terror financing has been passed in the UAE, it was announced on Tuesday. The law issued by the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, ordered the creation of a financial information unit and a national committee to combat money laundering, the financing of terrorism and other illegal organisations. Both the information arm and the committee would be set up within the UAE Central Bank.
The law requires those entering or exiting the country with cash, monetary or financial bearer instruments and precious metals or stones of value to declare them.
Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, said the law aims to establish a legal framework that supports and strengthens the efforts of the relevant authorities in countering money laundering and related crimes. "The law also counters financing of terrorist operations and suspicious organisations, which enhances the UAE's commitment to international recommendations and treaties.
"This law is part of the country's strategy to protect the local financial system by applying the best and most efficient systems to fight crimes, which affect the economy and political and financial stability of countries."
Under the law, financial institutions and specific non-financial businesses and professions are required to "continuously identify, evaluate, document and update crime risks" in their area of business, undertake due diligence and determine their scope based on multiple risk aspects. Furthermore, they may not open accounts or conduct any financial or commercial transaction anonymously or by a pseudonym or number. They must also develop internal policies, controls and procedures to manage, limit, and review the risks identified, and apply them to all their branches and subsidiaries in which they hold a majority stake.

Financial information unit

The unit will receive and investigate all reports submitted by financial institutions and other corporate establishments regarding suspected illicit financial activities. It will follow up and gather evidence on the transaction in question, and share this information with the relevant law enforcement departments.
It may exchange information with its counterparts in certain countries, based on suspicious transaction reports, or other information it has access to directly or indirectly. The unit will also be responsible for establishing a database, or a special record, of the information and protect it by establishing rules governing information security and confidentiality.

National committee

The national committee to combat money laundering and the financing of terrorism and other illegal organisations will propose the relevant systems, procedures and policies in coordination with the authorities concerned. It will follow up on their implementation and identify and assess the risks of crime at the national level.


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