The UAE was previously indulging in offshore structures and arrangements to attract profits without real economic substance. However, following commitments, the EU removed the UAE from the blacklist. Therefore, Money Laundering in UAE should be looked at.
The United Arab Emirates protects the vigorous Anti Money Laundering system and has taken an initiative to safeguard the terrorist financing, bribery, and corruption in the country.
What are the crimes in UAE?
The crime charge imposed in the United Arab Emirates is considered to be comparatively small. There are criminal activities like petty crimes that are generally low. The Department Authority mentions that the travelers who travel to UAE don’t have any problems related to the crimes. Moreover, the U.S Government safeguards against the different types of theft taking place in the country. Let us understand the different crimes related to Money laundering in UAE:-
Terrorist Financing
Terrorist financing is regarded as a very exceptional issue in the country. The United Arab Emirates has been recorded to entrust to lift the funds to support the militants in the countries like Afghanistan and Pakistan.
Drug Trafficking
Recently, drug trafficking crime has brooked the record in UAE. It is regarded as an extremely important transit country that involves global trade. The criminal markets in UAE largely expand due to the crime of drug trafficking. The drugs that are used in the country are not passed on the domestic demand but there is rising domestic demand for cocaine, as well as for cannabis, in particular, cannabis oils for vaping. There are also indications that the domestic consumption of methamphetamine which is a potent central nervous system stimulant that is mainly used as a recreational drug is rapidly increasing.
Human Trafficking
Human Trafficking in UAE is regarded as a major concern that intricates young boys and women. The country has been taking necessary steps to prohibit as well as impose an exhaustive master plan to combat it within the country and abroad.
Money laundering
Money laundering in UAE is insecure due to its major position in the region. The UAE leadership has taken effective steps to combat the organized crime that is taking place at large.
What is the status of the FATF Evaluation?
The United Arab Emirates has been enumerated by the Financial Action Task Force. It’s being under increased monitoring due to the different strategic deficiencies that occurred. FATF is set up to attempt Money laundering in UAE challenges. FATF has added UAE to the Gray list.
What is Financial Action Task Force
The Financial Action Task Force is regarded as the global money laundering and terrorist financing watchdog. This body is developed to set up the standards with the aim to combat the illegal activities that are taking place in the country. FATF promotes bringing up the national legislative and regulatory reforms in these prone areas.
Countries on the grey list do not suffer as severe repercussions as those on the Black List. Countries turning a blind eye toward the spread of blatant money laundering and terror funding are placed on the black list. The FATF has likely observed the beginnings of such activities in grey-listed countries. Placing a country on the grey list serves as a sort of warning for them. If they do not take any action against the spread of such activities, the FATF will most likely move them to the Black List. The black list was formerly known as the “Call for action” list and the Grey List “Other monitored jurisdictions.
Why did FATF add UAE to the grey list?
The Financial Action Task Force has added UAE to the grey list because they found that the country is not taking effective steps to combat the illegal activities that are taking place in the country. The United Arab Emirates avails as the regional center for commerce and business as well as the number of transactions transacted in cash. FATF gray listed UAE as Money laundering in UAE was a major concern.
The FATF 2020 report stated that UAE hadn’t exhibited efficient measures and supervision of the real estate agents, precious stones as well as metal dealers. The FATF has assured that UAE will be removed from the list if they take an efficient effort to combat money laundering as well as illicit cash flows.
Excessive money laundering may actually drain the country of the funds obtained in trade. Criminals then use the laundered money to fund anti-social activities like drug trafficking, gang activities, and even terrorist activities. This decreases the confidence of the country’s partners in trade, who then refuse to further associate with it. So, FATF gray listed UAE as Money laundering in UAE was a major concern.
What happens to a grey-listed country?
Though being on the Grey List does not seem as severe as being on the Black List, these countries may still face some repercussions. When a country is placed on the grey list, it comes with the stigma of being an unreliable trade partner. Many countries may reduce their trading channels to and from the affected country. They may also stop imports and exports to and from the Grey-listed country entirely. This can severely affect the country’s economy and international trade.
International bodies like the IMF and World Bank may also put financial and economic sanctions on the Grey-listed country. They may refuse to provide them with any loans until they start making serious efforts to combat these issues. The FATF may even blacklist the country if the government is not able to suppress the financial crimes taking place.
If a country doesn’t cooperate with the FATF, it blacklists them. They may either legally be unequipped, or unwilling to provide foreign law officials with any information regarding the current matters in their country. A country must also be willing to cooperate will all other member countries to help combat cross-border money laundering.
Placing a country on the grey list is essentially placing financial sanctions on it. If the country neglects to follow the sanctions, then the FATF places them on the black list. When the FATF puts a country on the black list, it suffers the same economic impact as OFAC and OFSI sanctions.
Overview of the Economy
The Economy of the United Arab Emirates is regarded as the 5th largest in the Middle East. It is a vast flourished economy. The UAE economy is highly dependent on the revenues that they receive through natural gas and petroleum. In 2009, 85% of the economy was based on oil exports. The time of the invention of oil in the UAE took place more than 30 years ago, it has shown everyone a huge metamorphosis from a poverty-stricken region of small principalities to a modern state with a high standard of living. Money laundering in UAE is also expanding in UAE.
Travel and Tourism is one of the massive non-oil sources of revenue in the UAE. The construction industry is booming in UAE. It is also expanding the manufacturing sector and the flourishing service sector is assisting UAE to diversify its overall economy.
How big is the challenge of Anti Money laundering in the UAE?
Recently Money laundering in UAE is regarded as the most vital challenge. In spite, the country has taken effective measures to combat money laundering, terrorist financing, etc. Earlier in 2001, the United Arab Emirates government has taken the initiative to curb as well as observe the cash flows through the UAE financial system. It agreed to co-operate internationally to combat the terrorist financing.
The UAE has enacted two laws related to money laundering. In spite of the fact that the Anti Money laundering in UAE laws illegalizes money laundering activities. The banks, money exchanges, and financial companies that work in UAE are required to follow the KYC Guidelines as prescribed by the Authority.
AML Certification in the United Arab Emirates
The aspirants who want to become anti-money laundering professionals would not need the right education for employment, but also professional accreditation. The Certified Anti-Money Laundering Professional is one of the kinds of designation for AML professionals to combat money laundering. Regtech Times Academy has launched a new course Certified Anti Money Laundering Professional (CAMP). Therefore, by doing this course one will get the basic knowledge of AML Domain.
It is one of the video-based learning certifications in the compliance domain. In order to differentiate the Certified Anti-Money Laundering Professionals from the various other certifications, we offer a bouquet of benefits and flexibility to the international AML professionals.
By doing this course, the aspirants will get an overview of international laws, understand the risk-based approach to money laundering, etc.
Data related to Money Laundering is very sensitive and it is not possible to outsource the data. Money laundering UAE is now becoming challenging day by day.
Riskpro Learning offers multiple short-term AML certification courses:
- Certification in Shell company Investigation – This certification is a specialized video learning course for the aspirants who want to know more about the shell company. The knowledge gained from this AML certification program will help one to identify and investigate shell companies.
- Certification in Trade-Based Money Laundering – Proceeds of crime are laundered through international trade. This certification explains the different methods of trade and the informal value transfer systems.
- Risk-Based Money Laundering – This online learning course discusses different aspects of the risk-based KYC approach and the identification of high-risk customers.
Why CAMP Certification is Irreplaceable
The CAMP certification is one of the most popular international accreditation globally. When the candidates prepare and pass the CAMP exam with flying colors, they strengthen their knowledge, expand their expertise, and gain the competencies to prevent crimes that are taking place. Therefore, this certification keeps anti-money laundering professionals aware of the new industry trends. While thinking in a view of career perspective, CAMP certification would provide better job opportunities and higher wages. Hence, to curb Money laundering in UAE the aspirants shall opt for this certification.
Preparing CAMP Examination
Exam preparation is the part where one needs to prove yourself best. It is necessary to prepare hard to crack the exam. CAMP requires a focused mindset with goals to achieve. Hence, for clearing the Certified Anti-Money Laundering Professional program exam, once the aspirants go through the video learning sessions provided by RT Academy. It would help to clear the exam very easily.
CAMP Examination
To acquire the CAMP examination, the aspirants are required to register the same and they are required to give the examination through online mode. Hence, there are no negative marking criteria. The minimum passing mark for the same is 75%
Prep AML Certification in UAE
In addition to the Certified AML Professional program, Regtechtimes Academy also offers the ACAMS Prep Course for the aspirants looking to take up the CAMS certification from ACAMS, USA. This course is a set of 6 simulated exams which would help the Algerian aspirants to pass their CAMS exams successfully. We offer a very cost-effective model for the CAMS Prep course and accept the payments in local currency.
