Shocking statistics on money laundering and terrorism support cases in the UAE

Shocking statistics showed the severity of the spread of money laundering and terrorism support cases in the UAE, in light of an international consensus condemning Abu Dhabi’s black record and threatening to impose international sanctions on it.

According to the statistics seen by Emirates Leaks, between 2019 and 2021, the conviction rate in 243 money laundering cases in the UAE was nearly 94%.

Statistics stated that in the past year alone, more than 625 million dollars were confiscated in connection with money laundering cases and supporting terrorism in the UAE.

In light of this, the UAE regime sought to launch a promotional campaign to avoid money laundering issues and support terrorism by clamping down on illegal money flows.

And the British newspaper, Financial Times, reported that the UAE is struggling to avoid being included in the International Financial Action Task Force’s list, known as the “grey list” of countries subject to more oversight due to deficiencies in combating money laundering terrorist financing.

And in April 2020, the Paris-based Financial Action Task Force warned the UAE, which has long been seen as a global magnet for illicit money, that it needed to work closely with its international peers and tighten compliance in vulnerable sectors. Use, especially the trade in gold, money and luxury real estate.

According to the British newspaper, western officials say the UAE has taken steps forward but is unlikely to avoid being placed on the so-called “grey list” of the Financial Action Task Force, which includes 23 countries such as Panama, Syria, Yemen, and others.

Two weeks ago, Bloomberg International Agency said that the global supervisory body for countries subject to financial supervision would include the UAE in its “grey list” early this year for deficiencies in combating money laundering and terrorist financing.

Bloomberg reported that the UAE is on the global watchdog’s list of countries subject to more oversight because of its dirty financial policies. It reported that the working group on monitoring financial activities will include Abu Dhabi on the grey list, one of the two classifications used by the intergovernmental body for countries determined to have “strategic shortcomings.”

Observers considered that the decision of the Financial Action Task Force to include the UAE on the grey list is one of the most important decisions in the 30-year history of the Paris-based group, given that the UAE is a major centre in the Middle East for money laundering and terrorist financing operations.

“Certainly, putting a country on the grey list means that it is engaged in financial activities,” said Catherine, the former Treasury official. She led the US delegation to the FATF-style regional group, the Middle East and North Africa Financial Action Task Force.”

“Many global regulators require banks and financial institutions to review risk assessments and related due diligence measures for countries parties to the FATF list, even if they have not reviewed them,” the Washington Institute for Near East Policy said.

The group is expected to decide at the plenary meeting that will be held in late February.

In a report released in April 2020, the Financial Action Task Force questioned the UAE’s financial system, despite a so-called “significant step” to tighten regulations, including new legislation for 2018 and 2019.

“Fundamental and significant improvements are needed across the Emirates to demonstrate that this system cannot be used to finance money laundering, terrorist financing and the proliferation of weapons of mass destruction,” the group said at the time.

Since the FATF’s warning in 2020, the UAE government has taken several steps to improve its alignment with global standards to prevent money laundering and combat the financing of terrorism.

According to a 2020 report from the Carnegie Endowment for Peace, illegal transactions are a “function, not a mistake” in Dubai’s financial system. The United States also places the United Arab Emirates on the “major money launderers” list.