Dubai sets up special court to combat money laundering

September 8, 2021 | |

Money laundering in UAE is the term referred to the procedure of dissociating the proceeds of crime from its original sources or making money obtained via unlawful prohibited practices which appears lawful or “legal “. The UAE government has passed an extensive variety of laws to tackle such types of crimes and subjected it to investigation and trial in order to eliminate this practice. With the development of anti-money laundering programs, criminal penalties for this crime have also significantly increased Money laundering is a constant problem for the United Arab Emirates, regardless of the measures the country has taken to combat financial, organized, and terrorist crimes. The UAE maintains a rigid Anti-Money Laundering (AML) system in order to protect against the possibility of money laundering and terrorist financing and keeps on taking corrective measures to trim down the loopholes.

With the aim to enhance the ongoing measures to fight against money laundering and safeguarding the economy, Dubai has formed a specialist court which will focus on combating money laundering and other financial counterfeits, as the emirate look for strengthening the reliability of its financial system and support nationwide measures to clamp down on money laundering.

The new legal body will be set up within the Court of First Instance and Court of Appeal. The announcement comes after the UAE established the Executive Office of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), under directives from Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, to supervise the execution and implementation of the country’s anti-money laundering policy. The new court will also assist the emirate in expanding its legislative structure and allow it to strengthen compliance with international anti-money laundering law enforcement standards.

Money laundering is considered a serious offense in the UAE and the government has come up with various measures in order to ensure the transparency of transactions The UAE has stern measures to combat financial crimes and money laundering in the Nation. In November 2020, the Ministry of Economy has established an anti-money laundering department, whereas a court was also formed in Abu Dhabi to deal with money laundering and tax evasion. The Central bank of UAE also frequently issues guidelines to assist companies and individuals evaluate money laundering risks. The regulator has also joined hands with other central banks and financial authorities to diminish financial crimes and counterfeits. The active partnership of the private as well as public sectors is demanded in order to control money laundering in the UAE. A thorough training will be provided to prosecutors and judges with regards to the subject of money laundering and tax evasion.

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