Dubai, While Enforcing Sanctions on Iran, Finds Less Reason to Push AML Crackdown

By Brian Orsak

Dubai's economic downturn has made the emirate more cooperative in enforcing international sanctions but has also given the emirate less incentive to crack down hard on regional money laundering, say analysts. Faced with sour economic numbers, the financial hub solicited a nearly $10 billion bailout in November and December 2009 from neighboring Abu Dhabi, Dubai's oil-rich neighboring emirate in the United Arab Emirates. The money was used to help Dubai repay loans used to spur its decade-long commercial boom. The bailout has made it easier for Abu Dhabi's government to "rein in" the semi-autonomous Dubai, including likely forcing it to...