Thu, Nov 20, 2014

Shaikh Mohammed issues resolution that gives Central Bank powers to freeze bank accounts of groups suspected of financing shady outfits operating in the country. Shaikh Mohammed issues resolution on anti-money laundering law

 

Close on the heels of the cabinet decision to list 83 terror organisations, the UAE is giving legislative heft in the pursuit of criminals with extremist links by cracking down on their sources of funds. Under a new resolution, the Central Bank will be given powers to freeze bank accounts, for up to seven days, of groups suspected of financing shady outfits operating in the country.

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued Cabinet Resolution No (38) of 2014 on the Statute of Federal Law on anti-money laundering and combating the financing of terrorism as the leadership gets to the root of the problem.

Prescribed in 25 articles, the resolution states that the ‘‘Central Bank may freeze, for a period for not more than seven working days, any accounts or moneys of illicit source and/or obtained or generated by criminal activity or related to financing of terrorist activities or organisations; in such case, the Central Bank must immediately inform the Public Attorney'', Wam reported. According to the resolution, customs authorities must implement the money declaration regime issued by the UAE Central Bank on any cross-border movement of physical currency, payable to bearer financial instruments, precious metals or valuable stones.

In April, the Federal National Council (FNC) passed the federal draft law No.4 for 2002 regarding anti-money laundering (AML) and combating the financing of terrorism.

Any person who provides, collects, carries or transfers money directly or indirectly to any society, organisation, centre, group, gang or persons, with the intention that they are to be used, partly or wholly, to finance terrorist acts whether these acts take place or not, will come within the ambit of the law.

Anti-Money Laundering, Suspicious Cases Unit and Financial Information Unit will be set up by the Central Bank under the law and all banks, moneychangers and other financial institutions are obliged to report any unusual transactions to the unit.

The law passed by the FNC said individuals found guilty of money-laundering will face a jail term of 10 years along with a fine ranging from Dh100,000 to Dh500,000.

Any institution found guilty of flouting the law will be fined between Dh50,000 and Dh500,000.

The resolution is considered active from the date of issuance on November 15, 2014 and to be published in the Official Gazette on Monday, November 17, 2014.