The UAE has completed drafting implementation details of its anti-money laundering law which gives the Central Bank a free hand in fighting such a crime including powers to freeze the assets of any suspected institution or individual for seven days.

The details of the law, which was ratified by President His Highness Sheikh Zayed bin Sultan Al Nahyan early this year, were released by the Central Bank and the Ministry of Finance and Industry this week and it includes 41 articles covering Central Bank's powers, legal aspects, penalties, and the role of other departments in combating money laundering.

The law was described by financial experts as tough and comprehensive enough to block any loophole for suspected financial activity in the UAE and the possibility of siphoning dirty money into or out of the emirates.

The penalties included in the law could also be an effective deterrent as they carry a jail term of up to seven years.

Details of the law showed the Central Bank was given absolute powers in the war against money laundering and it already has utilised those powers in freezing several bank accounts and blacklisting others. It has also reported foiling fresh laundering attempts.

"According to the law, the Central Bank has the powers to order a freeze on the funds of any suspected institution or individual for a period not exceeding seven working days at current market interest rates," said article 20 of the law.

"It should inform the account holder immediately of the freeze decision and demand him to provide his bank with all necessary documents proving that the account or the financial transaction is legal... at the end of the freeze period, the Central Bank is authorised to unblock the funds even if it does not receive a reply from the financial authorities of the country where that transaction originated."

It said any decision to freeze suspected funds must not be taken by any party other than by or through the Central Bank, which will then report to legal authorities. It asked all financial, monetary, trade and economic establishments in the UAE to report to the Central Bank about any suspected transaction or transfer they receive from abroad.

"In case these establishments decide to reject a remittance or a transaction, freeze the transfer, or close the account of a client, they must get prior approval from the Central Bank.

"Banks which accept foreign currency and investment instruments to be deposited in the account of one of their clients or mortgaged against a loan must verify their legal origin to ensure they are not false... they should also check all the origins of such funds even if they are legal... if they are not, the money must be handed immediately to the Central Bank."

The law also stipulated that exchange shops need to get prior agreement from the Central Bank before they open current accounts with banks and other financial institutions inside and outside the UAE.

Suspected money arriving in mail parcels should also be reported to the Anti-money Laundering Unit at the Central Bank.

The law also asked all relevant licensing and auditing institutions in the UAE to coordinate with the Central Bank in working out a mechanism to ensure new financial and monetary units will comply with the anti-laundering law.