The world needs to make solving its money laundering problem a priority. The UN estimates that globally the source of as much as $2 trillion of dirty money is concealed from authorities every year. That's just under the amount the US spent on two decades of war in Afghanistan, or roughly 5 per cent of global GDP. The problem is showing no signs of abating. On Tuesday, US officers seized $3.6 billion in stolen cryptocurrency – the largest financial seizure on record – and arrested a husband and wife accused of trying to launder it.
The practice is proving so challenging to defeat because it thrives in the otherwise beneficial conditions of today's globalised digital economy. It requires a collaborative approach. In the UAE, law enforcement agencies have taken increasing steps to crack down. The country’s economy has risen rapidly in large part due to its open, flexible and modern markets – advantageous qualities that, unfortunately, can sometimes provide a backdoor for international criminals.
While policymakers continue to promote economic openness as a basis for growth, they are also starting to set out in greater detail a strategy for tackling money laundering, as well as financial crime more generally. In a recent article for Forbes Middle East, Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, said the UAE takes the matter of combatting financial crime "extremely seriously" and outlined five principles for doing so.
They are centred on two key themes. The first is increasing the UAE's knowledge of the challenge, by understanding how complex it is, using advanced analytics, technology and investigation and conducting economy-wide risk assessments on money laundering and terrorist financing. The other is boosting co-operation in addressing financial crime between the private and public sector, as well as international partners, particularly focussing on increasing the ease at which different groups across industry and government can share information. At home, a huge number of entities are now involved in the mission, including the Central Bank, the Ministry of Justice, the Ministry of Economy and new anti-money laundering courts in Abu Dhabi and Dubai.
Sheikh Abdullah wrote that the UAE's approach "will enact a true step change in our ability to prevent illicit financial flows" helping to meet the country's goal of being "one of the strongest and most respected economies in the world".
New regulations are critical. At the same time, there will be a balance to strike; authorities know that clamping down on people transferring funds illegally must not come at the expense of the openness and flexibility that make the economy, and the vast majority of people that contribute to it legally, thrive.
The Emirates is as much a home for global trade as it is for families and networks that, given tough circumstances, might not otherwise have the luxury of being within the same financial jurisdiction as loved ones and colleagues. These scenarios are all too common in some countries of the Middle East, where the same poor governance that has disrupted business and family life has also created a breeding ground for financial crime. Within the region, the UAE is an increasingly rare, stable and profitable home to people from the region's many diasporas. The country is showing it can also serve as an important model for the region as it starts to deal with a seemingly intractable problem. The standards developed here will, moreover, provide important benchmarks for other parts of the region, and possibly the world, that need to tackle this issue. The UAE is showing commitment and seriousness in this regard.
In any country, sustainable growth is about more than increasing profits, creating jobs and building companies. It is also about creating a set of institutions and laws that protect the system without stifling those operating within it. As far as defensive measures go, building a system to tackle money laundering is among the most important. There is, after all, as much as $2tn on the line.
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Mohammed bin Zayed Majlis
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
Torque: 520Nm
Price: Dh332,800
On sale: now
Sukuk explained
Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
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RESULTS
6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m
Winner RB Money To Burn, Fabrice Veron (jockey), Eric Lemartinel (trainer).
7.05pm Handicap (TB) $175,000 (Turf) 1,200m
Winner Ekhtiyaar, Jim Crowley, Doug Watson.
7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m
Winner Commanding, Richard Mullen, Satish Seemar.
8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m
Winner Benbatl, Christophe Soumillon, Saeed bin Suroor.
8.50pm Handicap (TB) $135,000 (T) 1,600m
Winner Zakouski, William Buick, Charlie Appleby.
9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m
Winner Kimbear, Pat Dobbs, Doug Watson.
10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m
Winner Platinum Star, Christophe Soumillon, Saeed bin Suroor.
10.35pm Handicap (TB) $135,000 (T) 1,600m
Winner Key Victory, James Doyle, Charlie Appleby.
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
The specs: 2019 BMW i8 Roadster
Price, base: Dh708,750
Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery
Transmission: Six-speed automatic
Power: 374hp (total)
Torque: 570Nm (total)
Fuel economy, combined: 2.0L / 100km
