Tightening the Anti Money Laundering Legislation in UAE
The Federal National Council passed a draft of law regarding combating money laundering and terrorism financing in according to international recommendations by the Financial Action Task Force (FATF).
FATF informed that the UAE was one of the highest risk zone for money laundering, along with that the UAE was one of the most active countries that combats money laundering by establishing new laws.
Recently the fines against countries that are in the risk zone have tightened. The list of countries except Iran, Sudan, added Russia.
According to the new law special department will be set up. It will consist of representatives from some government bodies to supervise the fight against money laundering and terrorist financing. The legislation also reports penalties for money launderers, including fine of up to AED 500,000 or jail term of up to 10 years.
Money laundering by physical or legal entitles was criminalized in the UAE in 2002, while the Central Bank can also impose sanctions and revoke the licenses of banks falling in money laundering procedures.
According to the new law the other shareholders, managers and staff of company will be fined if they do not report about money laundering or terrorism financing. The penalties will be a fine of up to AED 100,000 or jail term of up to 3 years.
Walton Consultants DMCC