Rules of deterrence

The Government of the United Arab Emirates spares no effort to combat terrorism and illegal organizations by adopting various laws and regulations consistent with international best practices and enshrined in this framework.

Federal Decree No. 20 of 2018 on Combating Money Laundering, Terrorist Financing and Financing of Illegal Organizations, recently published by HE Sheikh Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates, Under this law, an independent financial reporting unit will be established within the Central Bank, which will review suspicious transaction reports and related information.

What should people and institutions do to avoid being held responsible for their legitimate financial transactions?

Individuals must disclose tradable currencies, financial instruments and gems upon entry into or exit from the State's territory, in accordance with the advertising system put in place by the Central Bank.

Financial institutions, businesses and non-financial professions must continuously identify, assess, document and update crime risks, take due diligence measures and determine their scope in relation to multiple aspects of the risks and taking into account account of the results of the national risk assessment. He must also refrain from opening accounts or conducting financial or commercial transactions, anonymously or by a pseudonym or number, or provide services to unknown entities, or to Establish internal policies, controls and procedures to manage, limit and review identified risks. And apply it to all its branches and subsidiaries in which it holds a majority stake.

Federal Decree No. 20 of 2018, author of the crime of money laundering, established that anyone who knew that the money came from a crime or misdemeanor and committed the same. 39, any of the following acts: the transfer or transfer of the proceeds or any operation for the purpose of concealing or concealing the source of the proceeds, or the product, its origin, location, disposition, movement, ownership or his rights, acquired, acquired or used at the time of his receipt, or helped the offender from the start impunity

The offense of money laundering is an independent offense that does not prevent the perpetrator from being punished for money laundering, nor is it required to condemn the original crime to prove the wrongful origin of the money laundering. produced, it is therefore necessary that everyone have sufficient knowledge of this crime. Things not to fall under the law.

Partner of the law firm Charles Russell Spiegel

What do people need to be responsible for their legitimate financial transactions?