International tax and finance consultants paid close attention this week as the Federal National Council (FNC) of the United Arab Emirates approved the draft Federal Law on Criminalisation of Laundering of Property Derived from Unlawful Activity.
The innovative law, aimed at preventing the abuse of the UAE’s financial institutions by international criminals, has been a long time in the making. The absence of a local drug trade meant there was very little local criminal laundering, and this in turn forced officials to try and resolve the many complexities involved in denying international money laundering. The approval of the bill made good the promise given by the Central Bank's governor, Sultan bin Nasser Al Suwaidi after a meeting of Arab Central Banks in the UAE capital this fall that it would definitely be issued by year end.
The law provides for jail terms of up to seven years, fines ranging from Dh 2,000 to Dh 1 million, and freezing of the suspect’s property. Illicit assets belonging to persons convicted under the law may be seized by the state.
Money laundering is defined in the law as overt or hidden financial transactions that use money gained from illegal activities, such as drug trafficking, kidnapping, fraud, and environmental law offences.
The FNC meeting was chaired by Speaker Mohammed Khalifa Al Habtour, and attended by Minister of Economy and Commerce Sheikh Fahim bin Sultan Al Qasimi, Minister of State for Financial and Industrial Affairs Dr Mohammed Khalfan bin Kharbash, senior ministry officials and Central Bank executives. After prolonged debate, the draft was approved with minor amendments, and sent on for ratification. (www.albawaba.com)
© 2001 Al Bawaba (www.albawaba.com)
