The United Arab Emirates is a global hub for international trade and is also a major travel destination for foreigners. The United Arab Emirates has a total of 22 local and 30 foreign banks which opens the door for potentially large amounts of money laundering and terrorist financing. The UAE also has the five biggest banks in the region (accounting for about 60% of the sector’s assets) according to the Corporate Financial Institute. New legislation in the UAE focuses on providing guidance that will help each bank to strengthen its AML compliance program.
Free Trade Zones (FTZ’s) Corruption and Money Laundering in the UAE
UAE has free trade zones (FTZ’s) in a number of areas across the country; FTZ’s are located throughout Dubai, Abu Dhabi, Sharjah, Fujairah, Ajman, Ras al-Khaimah and Umm al-Quwain. Free Trade Zones are a source of economic vitality and growth for the country. FTZ’s features 100% foreign ownership and zero taxes which attracts many foreign investors. Many of the banks in FTZs lack strong aml monitoring systems which can lead to a host of issues including fines and sanctions.
Despite the positive aspects of these zones, the openness of the country can also be seen as a double-edged sword and magnet for bad actors who engage in illicit activities/money laundering and terrorist financing.
To read more please visit: idmerit.com/ UAE anti-money laundring regulations
Money laundering can encourage illegal activities and must be stopped urgently.
Sentrient helps to identify and cease potential money laundering activities, ranging from suspicious customer behaviour, international transactions, larger than normal transactions and suspicious transactions.
