The Financial Action Task Force on Money Laundering (FATF) may return the United Arab Emirates to the list of jurisdictions subject to enhanced monitoring, also known as the “grey list”. This was reported by Infolibre.
The FATF lifted the UAE's enhanced monitoring regime last year, noting that the country's authorities had made significant progress in combating money laundering and terrorist financing. In particular, representatives of the Group emphasized the successes of the Emirates in anti-money laundering investigations and bringing offenders to justice. However, after the Organized Crime and Corruption Reporting Project (OCCRP) discovered in Dubai, as part of the Dubai Unlocked investigation, the property of persons hiding from justice in other countries and under international sanctions, the FATF leadership had doubts about status of the United Arab Emirates.
“We will hold the United Arab Emirates accountable for the measures they have taken or failed to take. FATF experts will review the facts from the Dubai Unlocked investigation, which they will take into account when re-evaluating the UAE’s efforts to combat money laundering,” FATF President Raja Kumar told Norwegian publication e24.
According to Dubai Unlocked, in the UAE, foreigners own 198 thousand commissioned and about 20 thousand real estate properties under construction. Among those who own or use them are international fraudsters, drug traffickers, and family members of sanctioned politicians. Investigators say real estate agents encourage their clients to pay in cash and show little interest in the origin of the money.
“Lawyers, accountants, business service providers, real estate agents... they all need to do their part to ensure full compliance with anti-money laundering and anti-terrorism financing requirements,” Raja Kumar said.
When the FATF removed enhanced monitoring from the UAE, the Group was criticized by many European politicians who considered the decision premature. If the country ends up on the gray list again, it will have a negative impact on its financial reputation and investment climate.
