Do companies in Dubai follow Anti-Money Laundering (AMR) Rules?
In a breaking move, UAE confiscated assets worth more than $1.29bn during its fight against the rampant issue of money laundering. It is an astonishing fact that incidents of money laundering projected an alarming growth of 51% on a year-to-year basis. The act of money laundering or illicit transfer of money is a global issue that promotes terrorist financing, corruption, and many such offenses. It only not destabilizes the country’s economy but also weakens the financial institutions which is a red flag for the development of a country.
In this article, we are going to discuss the laws surrounding money laundering in the UAE with the help of our lawyers in Dubai.
What is money laundering?
In the words of our best corporate lawyers in Dubai, money laundering is a serious economic offense that can be understood as a tactic to shield illicit or illegal money and made it appear legitimate. In legal parlance, Federal Decree No. (20) of 2018 (UAE Anti-Money Laundering Law) governs all the provisions pertaining to money laundering and prescribes suitable punishment. Article 2 of the law states that money laundering will involve any of the following activities:
- Transferring illegal money with the objective to conceal the actual source of money;
- Exchanging or disposing of illegal money to conceal the source from where the money has originated;
- Accepting or possessing illicit money;
- Getting involved as complicit in a crime from the illegal money was generated.
Money Laundering: An independent offense
Our lawyers in Dubai pointed out that money laundering is an independent offense and it will make the accused liable in addition to the other offenses committed by him. Further, it is not necessary to establish the actual source of illicit money to prove the offense of money laundering. Article 3 is very broad and it made all the persons liable who are having knowledge that this money is going to be used for terror-related activities.
Liability of companies
In the opinion of our criminal lawyers in Dubai, the offense of money laundering is also applicable to legal persons, such as companies and other corporate entities. To make legal persons liable under Article 5 of Anti-Money Laundering Law, (AML) it is mandatory that the crime must have been committed under the name of the company or its bank account shall be used to transfer/exchange money. Further, the individuals responsible to manage the affair or the conduct of the company shall be personally liable for the same.
To keep a check on money-laundering-related activities, the law made it mandatory for the following companies to must comply with AML Rules and keep a record of all the major financial transactions:
- Financial institutions;
- Designated non-financial businesses and professions;
- Non-profit organizations.
To curb the menace of money laundering, the government of UAE is having strong laws and regulations. The definition of money laundering is very wide and it encompasses all the transactions where illicit money is involved. To know more about it, you can consult one of our legal consultants in Dubai.
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