Political and Legal Measures against Money Laundering in Dubai - Thesis Example

The paper “Political and Legal Measures against Money Laundering in Dubai” is a brilliant example of a finance & accounting thesis. There is no condition for the establishment of trusts or related arrangements under the UAE federal law, and as a result, foreign trusts are not yet recognized within the country. However, unique trust law has been introduced within the DIFC, which results in the creation of express trusts. Therefore, such arrangements ought to be administered by trust service providers under the authorization of the DFSA, which are subject to record-keeping requirements. Most of the preventive measures applied to fight against money laundering in the UAE are lacking according to the 2008 report presented by the IMF.

The report indicates that "the legal framework for all the financial sector preventive measures within the domestic sector renders a basic grounding. However, this mostly predates the amendment of the FATF Recommendations made in 2003, which have currently imposed subsequent detailed requirements. In addition, the IMF report indicates that even though there are a variety of administrative measures put in place to strengthen the CDD regime by the UAECB, the country requires a more solid approach of both legal and regulatory framework in addressing the issue.37

The rule applied to financial institutions that are operating within the Dubai International Financial Centre (DIFC) tends to be generally and relatively close to the FATF regulations. Based on the country's STR regime, the IMF assessment examined that the suspicious transactions reporting system in relation to the acts of money laundering has been in existence within the domestic sector for a couple of years, although it lacks clarity as to the accurate basis on through which reports must be filed. Possibly the minimum levels of conformity for the UAE, as agreed on by the IMF, are for the suggestions related to a Designated Non-Financial Business and Professions (DNFBP) area. Despite the assertions made by the UAE authorities that most of the DNFBPs are subjected to the Anti-Money Laundering Law, no separate laws are specifically put in place to address such businesses.