[Al Arabiya Latest] The United Arab Emirates is tightening its controls on money laundering by keeping a closer eye on the funds of foreign officials and politicians, banking sources said on Wednesday while Dubai named a chairman and board members for its $20 billion government bond support program.
The central bank of the Gulf state, a regional business and trading hub, has told banks to disclose names of foreign account holders with political links and to secure approval from the monetary authority before opening such accounts, the sources said.
"Logically, when banks have relationships with PEPs, the main concern is misuse of their country's money in any form - money laundering, channeling, etc"
A senior banker |
A UAE central bank circular sent last week directed banks to name foreign "politically exposed persons (PEPs)", banking sources told Reuters. PEPs refers to foreign politicians, public officials and their families.
"Logically, when banks have relationships with PEPs, the main concern is misuse of their country's money in any form - money laundering, channeling, etc," a senior banker said, declining to be named due to confidentiality reasons.
Banks are required to report the names of the PEPs to the central bank by August 24, he said.
Another senior banker, who has seen the circular, said the UAE is stepping up banking regulations in line with international standards. "Recent events in the region as well as beyond perhaps prompted the authorities here to implement tighter scrutiny of the banking sector," he said.
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