5. The Emergence of the UAE FIU in Counteracting ML

It is important to stress that, prior to enacting the FLMLC 2002, the UAE Penal Code 1987 contains an Article which possibly criminalises ML activities. Article 407 states that:

Whoever acquires or conceals property derived from crime, with full awareness of that, without necessarily being involved in its commitment, shall be subject to the penalty assigned for that crime, from which he knows the property has emanated.

In case the perpetrator is not aware that the property is derived from a crime, but has acquired it in circumstances, which indicate its unlawful sources, the penalty would then be imprisonment for a period not exceeding six months and a fine not exceeding AED5000 or either of the two penalties.

It can be clearly seen that the term “ML” was not explicitly mentioned in the text of the Article, nevertheless, the first paragraph could be understood as criminalising ML because it contains broad terms, such as “property derived from crime.” Moreover, the Article covers two forms of ML which are possession and concealment of criminal property and does not cover other forms, such as disguising or transferring property. More importantly, prior to enacting the FLMLC 2002, no ML case had been transferred to the court under this Article. Nevertheless, a number of cases have been referred to the court in other circumstances. For example, the first paragraph of the Article was evoked where the perpetrator concealed a mobile phone which was acquired from theft by another perpetrator; whilst the second paragraph was applied in the case of a person buying a very cheap mobile phone from another person.

The Union Law No. 10 of 1980 is available on the UAE Central Bank website at: www.​centralbank.​ae/​en/​index.​php (accessed on 30th January 2014).

Dubai, Sharjah, Ras Al Khaimah, Fujairah and Al Ain.

The UAE’s Central Bank consists of seven departments, which are the Banking Supervision and Examination Department (BSED), Banking Operations, Research and Statistics, Administrative Affairs, Financial Control, the Treasury and Internal Audit. It also has seven sections: IT, Personnel, Correspondent Banking, Public Relations, General Secretariat and Legal Affairs, UAE SWITCH and the Governor’s Office Division. There are also the following seven units: the AMLSCU, IT Projects Unit, the Strategy Unit, the Legislative Development Unit, the Banking and Monetary Statistics Unit, the Financial Stability Unit and the Benchmarking Unit. It also has a Risk Bureau. The BSED is responsible for the integrity of the financial institutions, such as local banks, money exchange bureaus, financial investment companies and financial consultancies, branches and representative offices of foreign banks, brokers dealing in shares and financial instruments and finance companies. The AMLSCU will be critically analysed in section “The UAE FIU’s Role and Powers in the Fight Against ML”.

For further information about the organisation of the UAE Central Bank, its department and units, see http://​www.​centralbank.​ae/​en/​index.​php?​option=​com_​content&​view=​article&​id=​147&​Itemid=​109 (accessed on 30th January 2015).

See www.​difc.​ae (accessed on 4th February 2015).

See www.​dmcc.​ae (accessed on 4th February 2015).

Under Article 3 (2) of Federal Law 8/2004 regarding the Financial Free Zones, all federal laws are applicable in the Financial Free Zones except federal civil and commercial laws.

See www.​dfsa.​ae (accessed on 4th February 2015).

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ as produced by the FATF on 20 June 2008, 10.

The term “financial institutions” has been defined in Article 1 of the FLMLC 2002 as “any bank, financing company, money exchange house, a financial and monetary broker or any other establishment licensed by the Central Bank whether publically or privately owned.”

The term “other financial, commercial and economic establishments” has been defined in Article 1 of the FLMLC 2002 as “establishments licensed and supervised by agencies other than the Central Bank such as insurance companies, bourses and others.”

Graham Lovett and Charles Barwick, ‘United Arab Emirates’ in Wouter H. Muller, Christian H. Kalin and John G. Goldsworth (eds), Anti-Money Laundering: International Law and Practice (John Wiley & Sons Ltd., Chichester 2007), 643 at 650.

CBR 24/2000 was issued on 14 November 2000 and became effective on 1 December 2000.

Addendum 2922/2008 was issued on 17 June 2008 and entered into force with immediate effect.

For more details about the criticism, see “The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528).

Article 2 of CBR 24/2000.

Ibid.

Article 1 of CBR 24/2000.

The meaning of the term “CDD” will be further analysed in Chap. 7.

Circular No. 14/93 was issued by the Central Bank on 20 June 1993 and was directed to all banks in relation to returned unpaid cheques, current accounts, saving accounts and call accounts. It came into force on 1 September 1993 and required all banks to obtain certain documents for accounts, though Regulation 24/2000 reinforces Circular 14/93 and expanded the scope of obligations in terms of the entities which perform such obligations and added additional requirements.

Banks also have to retain a copy of the individual’s passport, after physically checking the original passport, and a competent account opening officer has to initial the copy as being a “true copy of original” Article 3 (1) of CBR 24/2000.

A trade licence is granted to a legal person, by administrative authorities in the UAE, to permit the practice of commercial business. Federal Law No. 18 of 1993 on Commercial Transactions governs the requirements of such trade licences and all aspects in relation to commercial business.

The bank has also to keep the names and addresses of shareholders whose shareholdings exceed 5 % of the concerned company’s shares in cases where the legal persons are publicly sharing companies. Article 3 (1) of CBR 24/2000.

The term “associations” has been clarified by CBR 24/2000 which means cooperative, charitable, social, or professional societies.

Article 3 (2) of CBR 24/2000.

In addition, other financial institutions, under Article 3 (4) of CBR 24/2000, have to comply with all the above obligations when they “receive money from their customers to manage investment accounts or from pooled investment accounts.” Article 3 (3) emphasises that all information about account holders must be up to date and all banks have to know the account holder’s name, as stated in the passport or in the trade licence in the case of a legal person. This is because banks are precluded from opening accounts with assumed names or numbers: Article 4 of CBR 24/2000.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 61.

Furthermore, every person has to show that he has appropriate legal authority in order to be able to act on behalf of another person. Pursuant to Addendum 2922/2008, all banks and other financial institutions have to recognise beneficial owners and obtain satisfactory evidence about the identity in respect of companies, as well as in relation to businesses, which are opening accounts or which are transferring money. Topic 1 of Addendum 2922/2008.

Which is about £6900.

Which is about £345.

Article 5 (1) of CBR 24/2000.

In addition, the UAE Central Bank issued Notice No. 1815/2001 on 3 October 2001 in relation to outgoing transfers. The Notice immediately requires all money exchange bureaus in the UAE to record details of individuals and institutions who/which transfer an amount of AED2000 or more to complete a specific form provided by the Central Bank. The details have to be confirmed through physically checking the passport, the UAE ID Card for UAE Nationals, the Labour Card for non-UAE Nationals or the UAE driving licence. The phone number has also to be recorded. A copy of cheques or travellers cheques has to be retained by the money exchange bureau in case the transfer is made through one of them.

Which is about £345.

Which is about £6900.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 75.

The 2012 FATF Recommendation 16 and its Interpretative Note replaced the 2001 FATF Special Recommendation VII; however, the threshold has remained the same.

Which is about £600.

Topic 3 of Addendum 2922/2008 which amended Article 5 (1) of Regulation 24/2000. It should be noted that the threshold for money exchange bureaus has remained at AED2000.

A further obligation requires banks and money exchange bureaus to complete a specific form, namely form No. (CB9/9000/2), and to retain it in a special file in case of receipt of a transfer/draft which is for AED40,000 (about £6900) or more and is to be paid to a non-account holder in cash or in travellers cheques. Article 5 (2) of CBR 24/2000.

However, all banks and money exchange bureaus are required to verify the identification of the customer and have to adopt the above-mentioned procedures in case they suspect ML, even if the relevant amount is less than AED40,000. Simplified CDD can only be adopted where the threshold is less than AED3500 (about £600) for banks and less than AED2000 (about £345) for money exchange bureaus. Banks and money exchange bureaus are then not required to adopt any of the above mentioned requirements. Although Regulation 24/2000 and its Addendum 2922/2008 did not mention this for transfers via banks, it has been impliedly mentioned for transfers in relation to money exchange bureaus.

The Central Bank Notice 1815/2001 stipulates that money exchange bureaus should provide the transferor with a receipt if the amount of the transfer is less than AED2000. (n 550).

Articles 8–14 of CBR 24/2000.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 62.

This obligation necessitates that the financial institutions have controls in place in order to be able to recognise whether an existing customer, the beneficial owner, or even a potential customer is a FPEP.

Topic 4 (a) of Addendum 2922/2008.

While the MLRs 2007 of the UK contain a clear definition and state the components for those two terms; see (n 832) of Chap. 7.

Nevertheless, no obligation was imposed on banks and other financial institutions in the UAE in this regard. Moreover, Regulation 24/2000 did not mention the term “correspondent banks.” See “The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism” (n 528) 62.

Banks and other financial institutions are further required to pay great attention in cases where the correspondent bank has got its headquarters in a country which is reported to be involved in high level public corruption or criminal activities, such as drug trafficking. In addition, banks and other financial institutions in the UAE are required to have adequate internal controls in place to appreciate and identify the purpose behind opening an account, the concerned correspondent bank’s ownership and its management structure and customers and third parties who are going to use the account. Institutions have also to observe transactions which are conducted via the account. Topic 4 (b) of Addendum 2922/2008.

Topic 4 (c) of Addendum 2922/2008.

Ibid.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 61.

Topic 2 of Addendum 2922/2008 states that banks are required also to conduct CDD procedures which were opened prior to the issuing of CBR 24/2000 on 14 November 2000.

Ibid.

Banks and other financial institutions are also precluded from entering directly or indirectly into relationships with “shell banks and companies.” Pursuant to topic 5 of Addendum 2922/2008, the term means that such institutions have no physical presence, although Regulation 24/2000 does not mention the prohibition. See ‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 88.

Article 18 (1) of CBR 24/2000.

Article 18 (2) of CBR 24/2000.

The regulation also requires, under Article 19 of CBR 24/2000, that other information is maintained, such as a copy of the passport of the individual, a copy of the trade licence for institutions, information about the origin of funds for money transfers, the destination of funds for transfers via accounts and information about whether funds are deposited or withdrawn by cash or cheques. All of these records have to be maintained and made available to the Central Bank investigators at least for five years and documents, which are required to open accounts, have also to be kept for five years after the account is closed. Article 22 of CBR 24/2000.

The “compliance officer” is responsible for STRs in banks and other financial institutions. This is equivalent to the “nominated officer”, who is responsible for SARs in banks and other financial institutions in the UK.

Article 17 of CBR 24/2000.

Ibid.

Topic 11 of Addendum 2922/2008.

Ibid.

See www.​sca.​ae/​english (accessed on 15th February 2015).

ESCA Regulation 17/2010 replaces the Circular issued by the Authority’s Board of Directors on 18 February 2004. It and its amended version are available online on SECA’s website mentioned above.

The regulation also applies to all branches of companies and institutions which are located outside the UAE if the countries where such branches are located do not apply the requirements contained in the resolutions or apply fewer of them. Article 2 of ESCA Regulation 17/2010.

Article 1 of ESCA Regulation 17/2010 and its amendment.

The definition of ML contained in the ESCA Regulation is the same as in FLMLC 2002.

Ibid.

Articles 3 and 15 of ESCA Regulation 17/2010.

Article 4 of ESCA Regulation 17/2010.

Article 12 of ESCA Regulation 17/2010.

Article 9 of ESCA Regulation 17/2010 and its amendment.

Companies and institutions, licensed by the ESCA, are required by Article 7 to record a cash deposit in a specific form when its value reaches AED40,000 or more, or even less than this amount in cases of suspicions about ML.

The term “suspicious on reasonable grounds” will be analysed in Chap. 8.

Article 1 of ESCA Regulation 17/2010.

Insurance Authority Regulation 1/2009 issued on 4 November 2009 and replaces the Circular issued by the Ministry of Economy on 6 January 2002 on AML procedures.

The definition of ML contained in the Articles 1 and 2 of Insurance Authority Regulation 1/2009 is the same as in the FLMLC 2002.

Article 3 (1)(2) of Insurance Authority Regulation 1/2009.

Article 3 (3) of Insurance Authority Regulation 1/2009.

The term “suspicion” will be critically analysed in Chap. 7.

Article 8 of Insurance Authority Regulation 1/2009.

Moreover, Article 9 of Insurance Authority Regulation 1/2009 provides that employees, who receive training from a compliance officer in insurance companies, must be subjected to the same fitness test and have to receive training about regulations and which has also to include practical aspects. In addition, the regulation also provides that a number of documents have to be obtained and retained by insurance companies and cooperative insurance companies in certain situations. Articles 11, 14 and 15 of Insurance Authority Regulation 1/2009.

Article 12 of Insurance Authority Regulation 1/2009.

Ibid.

In addition to the regulations mentioned above, there are a number of further regulations, such as the DIFC Non-Financial AML/Anti-Terrorist Financing (ATF) Regulations and the DMCC AML/ATF Policy. DIFC Regulations entered into force on 18 July 2007, available online at: http://​www.​difc.​ae/​sites/​default/​files/​DIFC_​Non_​Financial_​AML_​CFT_​Regulations.​pdf (accessed on 8th February 2014).

The DMCC AML/ATF policy is available online at: http://​www.​dmcc.​ae/​jltauthority/​wp-content/​uploads/​2011/​07/​G-02-AML-CFT-PP-20-September-2010.​pdf (accessed on 8th February 2014).

Article 1 (1) of the DIFC Regulations provides that the regulations apply to DNFBFs, such as real estate agents, lawyers and notaries working within the jurisdiction of DIFC. The DMCC AML/ATF Policy applies to all DMCC staff, its members and affiliates and its subsidiary companies and divisions. For further information in relation to the DIFC AML/ATF Regulations and the DMCC AML/ATF Policy, see Hani Ghattas (n 519) 1069–1072.

Moreover, there are a number of AML Circulars, which are issued by the Ministry of Justice about AML requirements and which apply to notaries in UAE courts and lawyers, namely Ministry of Justice Circulars 1/2008 and 8/2010 and Ministry of Justice Circulars 30/2008 and 9/2010. AML Circular Reference: 3/1/st/at/319 on 16 July 2002, which is issued by the Ministry of Economics, is directed to all auditors, persons or firms, irrespective of their nationality. These Circulars, including the Ministry of Justice Circulars mentioned above, are available on the Central Bank’s website at: http://​www.​centralbank.​ae/​en/​index.​php?​option=​com_​content&​view=​article&​id=​75&​Itemid=​95 (accessed on 8th February 2015).

FLMLC 2002 entered into force on 22 January 2002.

Article 1 of FLMLC 2002.

Ibid.

Article 1 of FLMLC 2002 defines the term of “proceeds” as “every property directly or indirectly obtained through commission of any of the offences provided for in Clause 2 of Article 2 hereof.”

These offences are:

A: Narcotics and psychotropic substances.

B: Kidnapping, piracy and terrorism.

C: Offences committed in violation of the provisions of Environmental Law.

D: Illicit dealing in fire-arms and ammunition.

E: Bribery, embezzlement and damage to public property.

F: Deceit, breach of trust and related offences.

G: Any other related offences provided for in international treaties to which the State is a party. Article 2 (2) of FLMLC 2002.

Article 1 of CBR 24/2000 (n 538).

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’(n 528) 11.

Article 1 of CBR 24/2000.

This is the same definition of ML as in ESCA Regulation 17/2010 and Insurance Authority Regulation 1/2009, which are both compatible with the definition in FLMLC 2002 (n 580 and 588).

It is worth noting that no previous research has analysed the definition and the variation was therefore not identified, nor the practical consequences.

Mentioned in (f) (n 600).

Graham Lovett and Charles Barwick (n 531) 650.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 9.

See Chap. 4 (n 320).

Under FLMLC 2002, ML can be committed either by individuals or by legal persons. It accordingly imposes criminal liability upon financial institutions if they commit any ML activities contained in Article 2 (1), irrespective of whether the acts are in their own names or in the name of account holders. Article 3 of FLMLC 2002.

Furthermore, all information about offences listed in FLMLC 2002 and which are obtained by entities are considered confidential. The information must not be divulged except to the extent necessary for the purpose of investigations, legal action or cases relating to a violation of FLMLC 2002. Article 12 of FLMLC 2002.

Article 2 (1) of the FLMLC 2002.

See (n 600).

Article 15 of the FLMLC 2002 states that:

Chairman, members of Boards of Directors, managers and employees of financial institutions and other financial, commercial and economic establishments who have known but refrained from notifying the unit provided for in Article 7 of this Law of any act that occurred in their institutions and was related to the money laundering offence, shall be punished with imprisonment or with a fine not exceeding Dhs. 100,000 and not less than Dhs. 10,000 or with both punishments.

Ibid.

The penalties for the offence are imprisonment or a fine between AED10,000 (about £1725) and AED100,000 (about £17,245) or both. Article 15 of FLMLC 2002 does not mention the period of imprisonment; however, pursuant to the general rule contained in Article 69 of the UAE Penal Code 1987, the term “imprisonment” must not be less than one month and not more than three years, unless the law provides another period.

They rather will be subject to Article 274 of the UAE Penal Code 1987 which provides that any person who has known that a crime occurred and did not inform the competent authorities shall be punished with a fine not exceeding AED1000 (about £150).

This is unlike UK AML law, which requires this, as shown in Chap. 8.

Article 15 of FLMLC 2002.

The term “suspicion” is analysed in Chap. 7.

The term “reasonable grounds to suspect” is analysed in Chap. 8.

One banker confirmed that the basis of STRs is objective, whilst another banker stated that it is both objective and subjective.

Article 16 of FLMLC 2002.

Ibid.

A person who is being charged for either offence may be imprisoned for not more than one year or can be fined between AED5000 (about £865) and AED50,000 (about £8,620), or both. Article 16 of FLMLC 2002.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 80.

This is unlike UK AML law, which requires this, as shown in Chap. 8.

Article 17 of FLMLC 2002 imposes a further offence if a person reports in bad faith to the competent authorities that an ML offence has been committed by another person, in order to cause damage to another person. He or she will be punished with a maximum the punishment defined as “false notification offence.” The latter offence is provided for in Article 276 of the UAE Penal Code 1987. In addition, Article 20 of FLMLC 2002 provides good faith immunity for “financial institutions” and “other financial, commercial and economic establishments” and members of their boards of directors, their legally authorised representatives and employees from criminal, civil and administrative responsibility “which may result from providing required information or from breaking any restriction imposed by legislative, contractual, regulatory, or administrative text for ensuring confidentiality of information.”

Article 15 (6) of CBR 24/2000.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 80.

Such as the Central Bank, ESCA, as mentioned above.

Article 11 of FLMLC 2002.

Article 6 of FLMLC 2002.

This regulation was issued on 9 January 2011 and entered into force on 1 September2011. It requires a traveller upon entering or leaving the UAE to make a declaration on the appropriate form, stating whether he or she carries cash and/or bearer instruments of a value exceeding AED100,000 (about £17,245) or the equivalent sum thereof in another currency and/or monetary/financial bearer instruments. In addition, the regulation imposes a number of obligations on customs officials at airports, seaports and border crossings. See Regulations regarding the declaration by travellers entering or leaving the UAE carrying cash or monitory/financial bearer instruments.

It should be noted that the previous threshold of the declaration system was AED40,000 and was applied only to travellers entering the UAE.

The threshold contained in the regulation exceeds that contained in the Interpretative Note to FATF Recommendation 32 which provides that the maximum threshold is USD/EUR15,000 (which is equivalent to AED52,500). See Chap. 4 (n 498).

The term “freezing or seizure” has been defined in Article 1 of FLMLC 2002 as “temporary prohibition on conveyance, transfer, disposition, or movement of property according to an order issued by the competent authority.”

Article 1 of FLMLC 2002 defines the term “Instruments” as “anything used or intended to be used in any manner in the commission of any of the offences provided for in Clause 2 of Article 2 of this Law.”

Article 4 of FLMLC 2002. In addition, Article 5 (2) of the same Act provides that the Central Bank is the sole entity which executes decisions pertaining to seizure of and provisional attachment on property with financial institutions.

Article 15 (6) of CBR 24/2000.

These entities are (1) the Central Bank, (2) the Ministry of Interior, (3) the Ministry of Justice, (4) the Ministry of Finance and Industry, (5) the Ministry of Economics, (6) Authorities responsible for issuing trade and industrial licences and (7) the State Custom Board. Article 9 of FLMLC 2002.

Article 10 of FLMLC 2002.

Ibid.

Cautionary Notice Regarding Financial Remittances issued on 10 December 2001. Available on the Central Bank’s website at: http://​www.​centralbank.​ae/​en/​pdf/​amlscu/​CautionaryNotice​-2001.​pdf (accessed on 8th February 2015).

Chapter 10 of this book provides recommendations to deal with improving the effectiveness of the NAMLC in AML at the national level and its role to assist constructively the UAE FIU in its functions.

Articles 21 and 22 of FLMLC 2002 deal with international cooperation in relation to AML.

This Circular was issued on 28 February 1998, available online on the UAE Central Bank website mentioned above.

Ibid.

Graham Lovett and Charles Barwick (n 531) 651.

Article 16 (3) of CBR 24/2000.

Topic 10 of Addendum 2922/2008.

Ibid.

Ibid.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 87.

This is what has been confirmed in the interviews with the banking sector in the UAE. See Chap. 6.

Article 17 of CBR 24/2000.

This is what has been confirmed in the interviews with the banking sector in the UAE where the bankers stated that these training courses are held irregularly. See Chap. 6.

Topic 6 of Addendum 2922/2008 amended Article 16 (1) of CBR 24/2000. Form (CB9/200/6) for the submission of STRs is attached to the CBR 24/2000. The FIU in the UAE Central Bank is called AMLSCU.

Except in cases of suspicious transactions relating to terrorism, terrorist organisations or terrorist purposes. In these cases the reporting of STRs must be immediately in writing to the AMLSCU and the concerned financial institution must freeze the transaction/account: Article 16 (5) of CBR 24/2000.

See (n 600).

In fact, the amendment was made because of the lack of clarity. On one hand, there was the term “unusual transaction” contained in Article 16 (1) of CBR 24/2000, on the other hand, the term “suspected transactions” was used in Article 16 (2) of the same regulation. This difference led to a lack of clarity in relation to how to judge a suspicion, i.e. whether it is a “subjective” or “objective test” or both. For more details, see ‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 87–89.

Article 15 of FLMLC 2002 (n 611).

This is compatible with the provision in Article 15 of FLMLC 2002, which does not require this.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 39.

This is unlike UK AML law, which requires that this is done as soon as is practicable, as shown in Chap. 8.

This is what has been confirmed in the interviews with the banking sector in the UAE. Whilst it only takes up to one week in bank D, it takes one month in bank E. See Chap. 6. Chapter 10 provides recommendations to deal with this dilemma.

Topic 8 of Addendum 2922/2008.

Ibid.

Ibid.

Topic 7 of Addendum 2922/2008 introduces the obligation since no reference had been made to “attempted transactions” in CBR 24/2000. For further information, see ‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 79.

Article 15 of FLMLC 2002 (n 611).

Topic 7 of Addendum 2922/2008.

Article 15 of FLMLC 2002 (n 611).

Topic 9 of Addendum 2922/2008.

Article 15 (6) of CBR 24/2000 (n 624).

Topic 11 of Addendum 2922/2008.

Ibid.

Topic 6 of Addendum 2922/2008 (n 650).

Article 15 of FLMLC 2002 (n 611).

The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 79.

The term “subjective basis” will be examined in Chap. 7 and the term “objective basis” will be analysed in Chap. 8.

Topic 9 of Addendum 2922/2008 (n 665).

Article 16 of FLMLC 2002.

This is unlike the FCA in the UK, which can impose financial sanctions, as shown in Chap. 7.

Article 7 of FLMLC 2002.

Article 8 (1) of FLMLC 2002.

The term “LEAs” is defined in Article 33 of the Federal Penal Procedures Code 35/1992 and its amendment 29/2005 and includes “Public Prosecutor’s Office, police officers, border guard officials, airport officers, sea port and airport officers, civil defense officers, municipality inspectors, ministry of social affairs inspectors, health ministry inspectors and officials authorised to act as law enforcement officials according to laws, decrees and resolutions in force.”

In addition, Article 7 of FLMLC 2002 states that information can be exchanged with the UAE FIU’s counterparts in other countries in accordance with international treaties and the principle of reciprocity. The UAE is the first of the Gulf countries which became a member of the Egmont Group in June 2002. The UAE is also a member of MENAFATF.

Article 7 of FLMLC 2002.

Article 8 (1) of FLMLC 2002.

Ibid.

Article 7 of FLMLC 2002.

(N 650).

Article 8 of ESCA Regulation 17/2010 and its amendment.

Article 8 (1) of FLMLC 2002.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 38.

Ibid 40.

Ibid.

This is unlike the UK FIU, which does so, as evaluated in Chap. 9.

It has been mentioned in the report that this practice had ceased. See ‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 678) 41.

Article 7 of the FLMLC 2002.

Article 8 (1) of the FLMLC 2002.

Article 7 of the FLMLC 2002.

For the meaning of the term “LEAs” in the UAE system, see (n 678).

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 41.

Sara Hamdan, ‘Suspect funds on the rise’ The National, Jun 23 2009, available online at: http://​www.​thenational.​ae/​business/​banking/​suspect-funds-on-the-rise (accessed on 19th February 2015).

Ibid.

Ibid.

Jayesh D’Souza, Terrorist financing, money laundering and tax evasion – Examining the performance of Financial Intelligence Unit (Taylor & Francis Group, LLC 2012), 162.

Article 15 of FLMLC 2002.

Article 15 of the FLMLC 2002.

Topic 6 of Addendum 2922/2008.

Alkaabi, Ali and others, ‘A Comparative Analysis of the Extent of Money Laundering in Australia, UAE, UK and the USA’ [January 20, 2010] Finance and Corporate Governance Conference 2010 Paper 1, 8. Available online at: http://​papers.​ssrn.​com/​sol3/​papers.​cfm?​abstract_​id=​1539843 (accessed on 13th November 2014).

Dubai Court Judgment, Criminal Division, case No. 2901/2005.

Which is about £1,810,345.

Which is about £5175.

Which is about £3,448,276.

Which is about £51,725.

Which is about £17,245.

Articles 7 and 8 (2) of FLMLC 2002.

The methodology provides that the FIU should have “the authority and capacity to carry out its functions freely, including the autonomous decision to analyse, request and/or forward or disseminate specific information.” FATF Reference Document, ‘Methodology for assessing technical compliance with the FATF Recommendations and the Effectiveness of AML/CFT systems’ February 2013, 74.

Available on the FATF website at: www.​fatf-gafi.​org (accessed on 13th April 2015). See also Chap. 4 (n 496).

Article 8 (2) of FLMLC 2002.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 42.

Ibid 43.

Article 7 of FLMLC 2002.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 37.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 37.

Ibid 43.

Ibid 41.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 41.

Interpretative Note to FATF Recommendation 29.

Chapter 10 provides recommendations to ensure the operational independence of the AMLSCU.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 37.

Ibid 43.

Ibid.

Ibid.

Ibid.

Which means around 20 STRs per week.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 43.

Chapter 6 discusses interviews with employees of the AMLSCU and identifies how many employees currently work for the AMLSCU.

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528) 43.

Chapter 10 provides recommendations to improve the quality of training courses and workshops, inside/and outside the UAE, with a view to enhancing the skills and analytical function of analysts working for the AMLSCU.

Anna Simonova, ‘The risk-based approach to anti-money laundering: problems and solutions’ (2011) 14 (4) Journal of Money Laundering Control 346, 355 & 356.

See (n 608).

‘The United Arab Emirates Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ (n 528)45.

In contrast, the Qatar FIU and the Saudi Arabia FIU (SAFIU) were rated as “largely compliant” with the 2003 FATF’s Recommendation 26, see ‘QATAR Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism as produced by the FATF on 9 April 2008, 53–60. In addition, see ‘Kingdom of Saudi Arabia Mutual Evaluation Report, Anti-Money Laundering and Combating the Financing of Terrorism’ as produced by the FATF on 25 June 2010, 51–61.

Ibid 13.