The Hindu Business Line : UAE comes down on terror finance, money laundering

THE UAE is taking concerted action against money laundering and terrorist-related financing with the drafting of a new law on counter-terrorism. It has also successfully registered over 100 hawaladars following a regulation issued last year urging hawala brokers to obtain certificates from the UAE Central Bank.

Mr Abdulrahim Mohammed Al Awadi, Assistant Executive Director, in charge of AMLSCU (Anti-Money Laundering and Suspicious Cases Unit) of the Central Bank, has said that the new law, which is in the process of being drafted, will have a separate provision to cover the responsibilities of legal entities and will criminalise all offences relating to the financing of terrorism, according to a report in the official Emirates News Agency, WAM.

Speaking here at a regional seminar for the representatives of South Asian countries on establishing a financial intelligence unit or FIU, Mr Al Awadi said that there would be further provisions in the proposed counter-terrorism law which would detail measures available for confiscation of property used in the financing of terrorism.

The official said that the UAE had a number of mechanisms in place to help combat terrorism and the criminal exploitation of its financial system. The Central Bank is empowered to issue freeze orders on funds anywhere in the financial system in the UAE, and to monitor accounts which may be used to facilitate terrorism, placing obligations on people and financial institutions to report any suspicious transaction, he said.

He said that the number of applicants to obtain a hawaladar (Hawala brokers) certificate reached 127, of which 107 were issued and the remaining 20 were in the process of completion of requirements.Mr Al Awadi said that the registration system requested hawaladars to provide it with details about transfers and beneficiaries on a special form. They were also requested to submit reports on suspicious remittances. The official said that the move committed the brokers to provide the Central Bank with the required details. He felt that the move would limit money-laundering activities to a great extent.

Mr Al Awadi said that the FATF Mutual Evaluation Team had indicated that the UAE had put in place a comprehensive regime of anti-money laundering laws and regulations and, as such, is in the vanguard in the international fight against money laundering and the financing of terrorism.

The Central Bank has set a ceiling of Dh 40,000 for the amount that may be brought into the country in cash or equivalent without the need for declaration. A regulation has also been issued exclusively to moneychangers to ensure that all outward remittances of Dh 2000 and above (or equivalent) are duly documented with proper identification of customers.

The UAE also has in place, a system of licensing/supervising moneychangers. The UAE has so far received and assisted several investigation teams from the US since September 11, 2001. It has also received teams from the UK, Germany, Pakistan and many other countries to tackle different anti-money laundering and terrorist financing issues, he added, according to the agency report.

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