United Arab Emirates

New Documents

The U.S. Justice Department unsealed a 21-count superseding indictment filed in the Eastern District of New York that charges 36 alleged members of a New York City-based street gang with conspiring to distribute drugs, firearms trafficking and money laundering, among other crimes.

The U.S. Attorney’s Office for the Eastern District of Wisconsin filed an indictment accusing five defendants of participating in a scheme to file fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program loans.

News

Enforcement Actions

The Securities and Futures Commission issued a disciplinary action against the Hong Kong-based subsidiary of The Goldman Sachs Group, Inc., requiring it to pay a $350 million fine for serious supervisory, risk, compliance and anti-money laundering controls deficiencies.

The Monetary Authority of Singapore announced that Goldman Sachs Singapore Pte, the Singapore-based entity of Goldman Sachs Group Inc. will pay a $122 million fine and $61 million in disgorgement to settle its involvement in the 1MDB scandal.


Key Documents

Important Facts

  • The U.S. State Department identifies the United Arab Emirates (UAE) as a jurisdiction of primary concern. Though a stable regional hub for transportation, trade and financial activity, the UAE has expanded its financial services businesses and foreign trade zones, thus opening itself to be misused by illicit actors who exploit the UAE’s open business environment, global banks, exchange houses, and global transportation links to undertake illicit financial activity. Such bad actors use UAE’s complex and uneven regulatory environment, to facilitate bulk cash smuggling, trade-based money laundering and transfer of illicit proceeds. Transfers of illicit funds usually occur through commodities used as counter-valuation in hawala transactions or through trading companies illegally operating as exchange houses. Other money laundering vulnerabilities within the country include the illicit transfer of funds from narcotics produced in Southwest Asia; real estate sector; misuse of international gold and diamond trade; and use of couriers to transfer illicit funds. The UAE has comprehensive know your customer and suspicious transactions reporting regulations and permits its Central Bank freeze assets of suspicious institutions or individuals.  Additionally, the UAE has enhanced due diligence procedures for politically exposed persons, both foreign and domestic, as well as a record exchange mechanism with other governments (excluding the United States).
Source: 2019 International Narcotics Control Strategy Report (INCSR)  

Rankings

FATF i

Technical Effectiveness
Compliant : 5 High :
Largely Compliant : 15 Substantial :
Partially Compliant : 18 Moderate :
Non-Compliant : 11 Low :

BASEL i

Rank : 52/125
Score : 5.6/10

TRANSPARENCY INTERNATIONAL i

Rank : 21/180
Score : 71/100

Tax Justice Network i

Rank : 10/133
Score : 78/100