Money Laundering-Global flows of illegal finance are a universal problem that continue to frustrate governments and law enforcement organisations all over the world as persistent hazards to the global financial system are posed by subtle threats. All nations must be committed to putting in place the most effective defences against illicit financial flows because these dangers are not regional in nature. This rule applies to the Middle East and North Africa (MENA) Region as well, and nations in the Region have characteristics of systems that are increasingly committed to defend themselves against the negative effects of criminal activity.
Accordingly, actions made at the supranational level have an equal chance of being useful in stopping money laundering and terrorist financing as those made at the state level.
money laundering meaning
Committing or attempting to commit money laundering:
Whoever commits any of the following acts, despite being fully aware that such funds are derived from an offence or a misdemeanor, shall be deemed as a perpetrator of money laundering:
- If converts, transfers, deposits, saves, invests, exchanges or manages any proceeds, with intent to conceal or disguise the illicit origin thereof.
- If conceals or disguises the true nature, origin, location, way of disposition, movement, rights related to any proceeds or ownership thereof.
- If acquires, possesses or uses such proceeds.
Procedures followed by UAE law towards money laundering crimes
Money laundering as a criminal offence has two main elements: criminal acts and criminal intent. Penalties for committing money laundering can include a fine or imprisonment, or both, depending on the circumstances.
For Individuals jail up to ten years and/or fine between AED 100,000 to AED 500,000. For Entity fine between AED 300,000 to AED 1,000,000 for each offence.
Public Prosecution is responsible for prosecuting crimes, but criminal proceedings for money laundering offences may be initiated exclusively by the Attorney General.
The defenses available under UAE law to charges of money laundering are not different from those available in respect of any other criminal offence.
Some of the procedures followed by the Emirates
The UAE’s Foreign Exchange and Remittance Group published its updated Anti-Money Laundering Standardization Manual in February 2018 to ensure that exchange houses operating in the UAE have clear guidance on the implementation of critical anti-money laundering and countering terrorism financing regulations.
This publication was shortly followed by the UAE Central Bank’s publication The Standards for the Regulations Regarding Licensing and Monitoring of Exchange Business, which imposes a deadline for compliance with its specific guidance of 31 December 2018. These initiatives demonstrate the UAE authorities’ continuous efforts to address anti-money laundering and countering terrorism financing risks within the jurisdiction.
FAQ about Money Laundering in the UAE
1-What is considered money laundering in UAE?
According to the Decree-Law, a person who continues to transfer, conceal, acquire, help someone acquire, or possess money knowing that it was obtained through criminal or civil wrongdoing is guilty of money-laundering.
2-What are the 3 stages of Anti-Money Laundering?
Placement, layering, and integration are the three main stages of money laundering, and numerous controls are implemented to keep an eye on any questionable activity that can be related to money laundering.
3-Is UAE high-risk for money laundering?
In the Money Laundering Regulations 2022 amendment, the UAE was added as a high-risk jurisdiction.
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