On Wednesday, the United Arab Emirates announced that it achieved observer status in an Asian anti-money laundering group as the Gulf state seeks to boost its compliance on the issue following scrutiny.
The official Emirates News Agency reported that the UAE was granted observer status in the Asia/ Pacific Group on Money Laundering, in which the UAE will participate in the group’s forum that will be held in Vancouver, Canada.
Asia/ Pacific Group said the forum began on Sunday and will conclude on Friday.
According to the Emirates News Agency, the delegation of the UAE with the forum will be held by Hamid Al Zaabi, who heads the Executive Office of Anti-Money Laundering and Counter-Terrorism Financing.
What it means:
The Asia / Pacific Group On Money Laundering was established in 1997 as a ” regional body” of the Paris- based Financial Action Task Force. Both organizations work to fight money laundering and financing terrorism and proliferation.
Moreover, the Asia / Pacific has members across Asia, including China, Japan, and South Korea. The United States is also a member. Observers of the group include the United Kingdom, France, Germany, and North Korea.
Why it matters:
Agence France- Presse reported that the UAE was named to the Financial Action Task Force’s ” grey list” in 2022. The list denotes the countries addressing “strategic deficiencies” concerning money laundering and illicit financing.
Moreover, the Gulf state has been involved in several money laundering, sanctions, busting, and related scandals in recent years. In April, British authorities said they disassembled a criminal ring that smuggled more than $100 million to the UAE from the UK.
However, Emirates entities have initiated many measures in the past year to crack down on money laundering and related offenses. In January, the UAE Central Bank issued new guidance on money laundering and terrorism financing.
The Financial Action Task Force released a report on the efforts of the UAE to counter money laundering last week. The report noted that the UAE improved its risk inspection and other assets but only partially appreciates all of the task force’s recommendations.
