UAE poised to step up anti-money laundering drive

Abu Dhabi: The UAE Central Bank yesterday said it would step up its anti-money laundering and terrorist financing regulations to combat the new methods used by criminals.

Sultan Bin Nasser Al Suwaidi, Governor of the Central Bank, admitted there are many suspicious cases relating to money laundering and terrorist financing in the UAE under investigation and called for international cooperation in the fight.

"It (money laundering) still poses a challenge. As we evolve and develop new regulations, criminals do change their ways and methods and therefore it is a constant challenge," he told reporters.

"We have to constantly develop safety nets to deal with the new methods of money launderers," he said during a joint seminar on anti-money laundering efforts between the UAE and the UK.

Both countries also signed an MoU for intelligence sharing between their respective Financial Intelligence Units (FIUs).

Al Suwaidi said "many cases" relating to money laundering have come to light and they are under investigation.

"There are two parties in such cases, one outside the country and one inside and it can get confusing sometimes. Combating money laundering is a gradual process that will take years and joint efforts are needed.

"So international cooperation becomes extremely important," he said without disclosing the exact number of cases under investigation.

The number of registered Hawaladhars has touched 185 but "mostly blue-collar workers use this informal system of remittance and the amounts sent are not huge," said Al Suwaidi.

David Armond, Deputy Director of the UK's Serious Organised Crime Agency, said money laundering is a scourge that affects all major financial centres including the UK and the government is working hard to combat this form of crime.

"Major financial centres worldwide face the problem of money laundering and the UK is also one of them like the UAE which is becoming a bigger and bigger financial centre.

"Fighting this crime is an important part of the UK government's agenda, it is an important part of international efforts," he said.

NGOs opening a bank account must get declaration from ministry

An amendment to the law governing NGOs in the UAE is in the works, a Central Bank official said yesterday.

"The law to govern and supervise NGOs exists from 1974 and that law has been amended many times. It is now in the process of being amended again in conformity with international requirements and the special recommendations of the Financial Action Task Force (FATF)," said Abdul Rahim Mohammad Al Awadi, head of the Anti-Money Laundering and Suspicious Cases Unit in the UAE Central Bank.

He did not specify the nature of amendment, stating that it is being handled now by the Ministry of Social Affairs.

"The Central Bank worked with the ministry on the amendment," he said.

NGOs opening an account in any UAE bank must secure a declaration signed by the Ministry of Social Affairs, Al Awadi added.