slideshow

Money Laundering in the UAE

Posted on 1st April 2010 by Camille Paldi,

Anti – Money Laundering Laws in the UAE and Dubai International Financial Center Free Zone

 

I.

UAE Federal Law No. 4 of 2002, Regarding Criminalization of Money Laundering

http://www.centralbank.ae/pdf/AMLSU/Federal-Law-No.4-2002-English.pdf

UAE Federal Law No. 1 of 2004 Regarding Anti- Terrorism

AML Federal_Law_No_1_2004[1]

http://uaelaws.files.wordpress.com/2010/04/aml-federal_law_no_1_20041.pdf

UAE Penal Code, Federal Law No. 3 of 1987

http://www.centralbank.ae/pdf/AMLSU/Federal-Law-No.3-1987.pdf

UAE Central Bank Regulations concerning Money Laundering

http://www.centralbank.ae/AMLSU.php

DFSA Anti-Money Laundering Rules: These set out the requirements for the policies, procedures, systems and controls which the DFSA require Authorized firms in the DIFC to have in place.

 AML_DFSA_Rulebook[1]

AML Non_Financial_AML__Regulations[1]

AML ASP_Module_DFSA_Rulebook[1]

II.

Money Laundering is the process by which individuals attempt to conceal the true origin, ownership and/or use of the proceeds of illegal activities and includes, without limitation, monies associated with terrorist financing.

Money Laundering can be divided into three stages:

  1. Placement, which involves the placement of illicit funds into the financial system.
  2. Layering, which involves the transfer of funds from one source to another in order to conceal the source of funds.
  3. Integration, which involves the placement of the proceeds of crime into use as legitimate funds by purchasing a legitimate business or real estate.

The Dubai Financial Services Authority (“DFSA”) has recently stepped up its’ campaign against anti-money laundering.  The DFSA is the organization which monitors the Dubai International Financial Center  (“DIFC”).  Depending on the type of  DIFC company vehicle, there are various forms of anti-money laundering controls which must be put in place in order to obtain a license to operate.  Violation of the Anti-Money Laundering Rules of the DFSA can lead to censure and/or penalty. 

Recently, the DFSA censured Saxo Bank Dubai for failure to comply with the DFSA Rules regarding the on-boarding of clients and Anti-Money Laundering, however, no evidence of any money-laundering was found to have taken place.  Saxo Bank was censured due to the fact that it referred clients to its parent company in Denmark without carrying out sufficient client classification as per the Laws and Rules of the DIFC and DFSA. 

In another recent case, the DFSA fined Dubai’s E-Trade Securities, the Dubai unit of a global online trading company, AED1.1 million for deficiencies in its anti-money laundering controls.  The DFSA said E-Trade Securities had failed to obtain sufficient documentary evidence of the origin of funds or sources of wealth of clients and nor  did it have adequate policies to ‘address the need to assess the money-laundering risk of its clients.’  E-Trade Securities has entered into an enforceable undertaking with the DFSA that requires the company to pay AED734,580.00 in thirty days.  Furthermore, E-Trade Securities was forced to close more than 1,000 customer accounts.

Ian Johnston, Deputy Chief Executive Managing Director of the DFSA said, “ The DFSA expects all firms, as part of their compliance regimes, to establish and maintain strong and effective know your client, anti-money laundering, and counter terrorist financing systems and controls.’  Firms should therefore confirm clients’ identities, residential addresses, and sources of funds as well as comply with the anti-money laundering controls in place in their company and the Anti-Money Laundering Rules of the DFSA.


Posted on 1st April 2010 by Camille Paldi


Comment on this post







Twitter

    • 2nd July @camille paldi
    • Takaful endowed with high potential in Southeast Asia - http://t.co/BtPblGlg2K #GoogleAlerts
    • 2nd July @camille paldi
    • Islamic Management and Governance Centre to be set up in Dubai - http://t.co/G48zS7y0zH #GoogleAlerts
    • 2nd July @camille paldi
    • Qatar Islamic Bank raises QAR2bn with Tier 1 sukuk - http://t.co/q3kUgkI3K5 #GoogleAlerts
    • 2nd July @camille paldi
    • Malaysia's Agrobank becomes fully Islamic - http://t.co/31GD4g6hor #GoogleAlerts
    • 2nd July @camille paldi
    • Germany's first interest-free Islamic bank opens in Frankfurt - http://t.co/9UexmJDn4f #GoogleAlerts
    • 2nd July @camille paldi
    • Oman central bank sets up Islamic banking department - http://t.co/HBGU2lEFui #GoogleAlerts
    • 2nd July @camille paldi
    • Banks in Oman see growing demand for personal finance - http://t.co/r3qYvKV8AX #GoogleAlerts
    • 1st July @camille paldi
    • AAOIFI Standard Number Five – Guarantees - http://t.co/qzmcvL4Ljk #GoogleAlerts
    • 1st July @camille paldi
    • Egyptian Takaful Non-life eyes USD1.3m premiums in FY2015-16 - http://t.co/Mg3qMe25iH #GoogleAlerts
    • 1st July @camille paldi
    • Takaful endowed with high potential in Southeast Asia - http://t.co/BtPblGlg2K #GoogleAlerts
    • 1st July @camille paldi
    • Abu Dhabi free zone publishes draft rules for financial firms - http://t.co/p6XwCxW3yR #GoogleAlerts
    • 1st July @camille paldi
    • My vision as City minister: I want UK finance to be the world's most competitive - http://t.co/tA67Tv2MBN #GoogleAlerts
    • 1st July @camille paldi
    • Noor Bank rings bell to celebrate listing of its debut $500 million Sukuk on Nasdaq Dubai - http://t.co/aEWKbHBV4e #GoogleAlerts
    • 30th June @camille paldi
    • Kazakhstan introduces changes to obligatory insurance and Islamic finance laws - http://t.co/7Tr7B0SYZj #GoogleAlerts
    • 29th June @camille paldi
    • IFC and Ghanaian companies partner to build extractive industry - http://t.co/9LIf5KaNiY #GoogleAlerts
    • 29th June @camille paldi
    • Oman: Takaful insurance accounts for OMR24m - http://t.co/zFZvO71RLx #GoogleAlerts
    • 26th June @camille paldi
    • Only if you have a lot of time on your hands-International Finance Magazine https://t.co/Tcpok72wWO via @sharethis
    • 25th June @camille paldi
    • Saudi's Riyad Bank prices 4 bln riyal capital-boosting sukukIslamic Finance - Zawya - http://t.co/ZoMzZmWjLE #GoogleAlerts
    • 25th June @camille paldi
    • Will Kuwait Need Shariah Board For Islamic Banks? - http://t.co/EpV3hrVll6 #GoogleAlerts
    • 25th June @camille paldi
    • FAAIF Announces the Dubai International Business and Social Sciences Research Conference http://t.co/6evxTHdcVT via @ein_news

Articles

Reforming Economics and Finance in the Light of Abrahamic Principles

Reforming Economics and Finance in the Light of Abrahamic Principles

Introduction

The modern day economic system is built upon and around interest-based lending, which allows one class of people to grow rich at the expense of the majority of the population. Interest has been prohibited in all Abrahamic religions for essentially the same reaso...

Posted on 1st July 2015 by Camille Silla Paldi

China's Entry to the Islamic Finance Market

China's Entry to the Islamic Finance Market

 

By Matthew Pendrey

Assistant Director at The Royal Bank of Scotland

 

 

In April 2015, Qatar International Islamic Bank signed an historical agreement with Southwest Securities, based in Chongqing, to develop Shari'ah-compliant finance across ...

Posted on 1st July 2015 by Matthew Pendrey

Islam Explains Why Interest is Prohibited in the Bible and Torah

Islam Explains Why Interest is Prohibited in the Bible and Torah

 

By Camille Paldi, CEO of FAAIF, camille@faaif.com

 

 

Lending money is not prohibited in the Bible. What is prohibited is charging abusively high interest. This is because high-interest loans...

Posted on 6th June 2015 by Camille Silla Paldi

The Changing Face of Banking in Dubai

The Changing Face of Banking in Dubai

The Changing Face of Banking in Dubai

Posted on 30th May 2015 by Matthew Pendrey

Video

Find all our videos here, and also a link to our YouTube video channel so you can view our 'video of the week'

Submit

We would like you to get involved with our site. So if you want to submit Articles, Videos, Events and Call for Papers, please click the button below:

Submit

Valid XHTML 1.1 |  Valid CSS |  Web Design in Durham and Newcastle |  Copyright © 2015

* Prices are converted at USD$0.2723 per AED 1