KHALEEJ TIMES, Tuesday, Sep 1, 2020 | Muharram 13, 1442
UAE makes it mandatory for hawala service providers to register
Emirates:
The UAE has made it mandatory for Hawala service providers in the country
to register, as the country strengthens its anti-money laundering and
counter terrorist financing (AML/CFT) framework, the Central Bank said in a
statement on Monday.
The announcement was made following the sixth meeting of the National Committee
for Combating Money Laundering and the Financing of Terrorism and Illegal
Organisations (NAMLCFTC) in Abu Dhabi on Monday.
Hawala, or hundi, is an unofficial and informal channel to transfer money mainly
used among South Asians whereby they give money to agents who then instruct
their associates in the country to deliver it to the customer's house. It is
estimated that between $100 billion to $300 billion flow through this informal
transfer system globally every year.
With UAE being a one of the major markets for remittances, regulating this
informal industry will help monitor money-laundering and counter terror funding.
Remittances from the UAE amounted to some Dh165 billion in 2019, led by India,
Pakistan, the Philippines, Egypt, the UK, and Bangladesh.
Chaired by Abdulhamid M. Saeed Alahmadi, governor of the UAE Central Bank and
chairman of the committee, the meeting also discussed technology assistance and
capacity building both in terms of human and financial resources to further
strengthen the country's ability to implement targeted financial sanctions
relating to the prevention and suppression of terrorist financing.
It also discussed proactive cooperation with countries that share commitment in
implementing the strategy of combating money laundering and the financing of
illegal organisations. In order to create an awareness about financial crimes
that threaten the security and stability of the country, a new website has been
developed to assist strategic partners and stakeholders in complying with
international-standard reporting measures.
In addition, the committee also discussed the recent achievements of the UAE
Financial Intelligence Unit (FIU), an independent unit that investigates
suspicious transactions that potentially involve money laundering, terrorism
financing and similar criminal activities, underpinned by proactive
collaboration with relevant national and international authorities and financial
services institutions.
The FIU will launch a new brand identity and a dedicated website, reflecting its
commitment to further promote anti-money laundering and counter finance
terrorism and enhance transparency with international counterparts.
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