Fine of up to 5 million dirhams and life imprisonment; United Arab Emirates toughens law on money laundering and terrorist financing
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The country has tightened the law as part of the Financial Action Task Force membership.
Companies and individuals must step up their efforts to comply with the UAE’s anti-money laundering and financing of terrorism (AMLCFT) laws to avoid sanctions and imprisonment, lawyers and officials said.
Alexander Kukuevmanaging partner and advocate at Uppercase Legal Advisory, said violators could face up to 5 million dirhams sentence of life imprisonment and the minimum prison sentence is 10 years.
He UAE Central Bank and other authorities have penalized many entities for not adhering to AMLCFT regulations. The United Arab Emirates has tightened the law around AMLCFT as part of membership in the Financial Action Task Force (FATF), a global financial crime watchdog.
The UAE has stepped up its efforts against the AMLCFT in recent years and is set to exit the FATF gray list next year as it substantially introduced the compliance measures necessary for its removal from the list of countries under enhanced monitoring. of the multilateral organization.
More attention
Capital lettersThe managing partner hopes that the government and authorities will pay more attention to AML compliance starting next year to comply with FATF rules. The UAE is expected to exit the FATF gray list next year.
“The UAE will focus more on anti-money laundering and I strongly believe that large companies and SMEs will have to consider it as the number one issue when starting their businesses. More and more free zones are also getting involved, so they will check whether the company registered in them complies with the rules when they renew the licenses. If the former do not comply, they may not be granted a business license.”
he said.
Uppercase Legal Advisory is an international law firm, specializing in providing expertise in key areas such as anti-money laundering (AML), FATF compliance, countering the financing of terrorism (CFT) compliance, mergers and acquisitions ( M&A) and commercial law. . It recently started operations in the United Arab Emirates.
He noted that the UAE aligns itself with global efforts in terms of compliance with FATF regulations, AML and combating the financing of terrorism.
“In fact, the UAE is becoming the leader in the Mena region in terms of taking action against such practices.”
kukuev he said in an interview Tuesday.
Challenges for SMEs
He noted that many small and medium-sized businesses are not aware of AMLCFT laws because they underestimate their importance.
“Large corporations should pay attention to AML, KYC and AML procedures, and these should be the top priority of companies.”
Abdulla Baqer, regional director of Dubai Chamber, He said that they not only promote Dubai but also educate foreign companies about local laws and policies and also create awareness among local companies.
“Today we recognize the latest trade momentum between Eurasia and the United Arab Emirates and the positive role of commercial law firms in business compliance.”
aggregate Baker.
News Source: Khaleej Times
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