Dubai Sets up Special Court to Tackle Money Laundering

Richard Marley
August 23, 2021
3 minutes read
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The new court of law has been established to combat money laundering and related financial crimes within Dubai.

In an attempt to combat financial crimes such as money laundering, Dubai has formed a specialized court with the primary function of meeting AML (Anti-Money Laundering) compliance standards. This move comes as the emirate seeks to revamp the integrity of the financial system by clamping down on money laundering.

The Dubai Media Office gave a statement on Sunday, whereby it was revealed that the new court will be set up within the Court of First Instance and Court of Appeal.

Under the directive of the Vice President and Ruler of Dubai, Sheikh Muhammad bin Rashid, the UAE recently established the Executive Office of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) to monitor the enforcement of the country’s AML strategy.

Dubai Courts today announced the establishment of a specialised court, focused on combating money laundering, within the Court of First Instance and Court of Appeal. pic.twitter.com/s8diPAE1hF

— Dubai Media Office (@DXBMediaOffice) August 22, 2021

In support of the new body, the Director of Dubai court, Taresh Al Mansouri, stated:

“Reporting money laundering crimes is both an individual and collective responsibility. Society plays a critical role in safeguarding economic and social security and strengthening the efforts of various stakeholders in responding to such crimes.”

Although the country has been dubbed as the “Money Laundering Paradise” on various accounts, the UAE is making strict efforts to combat money laundering and other financial crimes. Last November, the Ministry of Economy set up an AML department, while a court was also established in Abu Dhabi to minimize the threats of money laundering and tax evasion.

Additionally, the country’s central bank also issues guidelines on a regular basis, allowing companies and individuals to assess risks associated with money laundering. Regulators of the country have also teamed up with other central banks and financial regulators to curb financial crimes.

Another key function of the court will be to help the emirate develop an effective legislative framework and allow it to reinforce compliance with international anti-money laundering law enforcement standards.

Dubai has been intensifying its fight against money laundering. This Saturday, eight criminals and three companies were convicted by the Dubai Misdemeanour Court due to cyber fraud and the laundering of stolen funds amounting to about Dh14 million ($3.81m).

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ASIC Expands its Team to Enhance Cryptocurrency Regulations
Australia’s financial regulator has enhanced the size of its crypto team. The crypto regulatory measures include their application for financial services licenses and show that specific crypto platforms have particular liquidity in reserve.

After shifting popular blockchain from a proof-of-work (PoW) to a proof-of-stake (PoS) system, ASIC, Australia’s financial regulator, has increased the size of its crypto team.

U.S. Security and Exchange Commission Chairman Gary Gensler stated that PoS-based tokens might be classified as securities.

The decision of ASIC to keep PoS tokens for example Ethereum, Cardano and Solana under its remit will further clarify the situation and enable crypto regulations to be more effective. To cope with the latest regulatory reforms, the crypto exchange must either delist the tokens or start complying with robust crypto laws.

Such moves may force a few crypto firms to manage their operating models. Even the largest stablecoin of the crypto market, Tether, has been caught in a controversy created over the failure of holding enough dollar reserves to back the stablecoin.

The crypto regulatory measures include their application for financial services licenses and show that these platforms have particular liquidity in reserve.

The final decision by the regulator has not been issued yet. Greg Yanco, the executive director for marketers, said that ASIC won’t be a “cheerleader for crypto assets.”

SEC Newgate carried out research the last November. It showed that 44% of Australian retail investors reported holding crypto. Out of these investors, only 20% viewed crypto as high-risk.

The chairperson of ASIC responded and said that the regulators were “concerned that there are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulating crypto-assets to better protect investors.”

According to Yanco, until the last year, cryptocurrency was not such a high priority. Still, due to the decline of cryptocurrency in the previous few years and investors wiped out around the globe, ASIC expanded its team. It made crypto one of its “core strategic projects.”

Suggested Read: Regulatory Authorities to File a New Bill to Secure the Citizens from Cyber Criminal Activities

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All the digital service providers particularly financial companies, educational institutions, and immigration departments are at high risk of document fraud. The criminals use forged documents to claim funds, admissions to universities, or entry to foreign countries. By implementing standards of forensic forgery detection, all online businesses can secure their onboarding system with very less risks of scams. The forensic authentication of documents involves scientific techniques to verify the identities of users leaving no room for criminals.

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Forensic document verification involves incorporation of scientific rules in examining the authenticity of records. There are experts in this field who carry out all the operations using specialized methods. Nowadays, the use of forensics is rising, especially in courts where no document is accepted without authentication. By using several techniques like handwriting identification, ultraviolet light sources, microscopes, photography, and infrared imaging in the laboratories, a document is verified. All the major jurisdictions have formed dedicated institutions which overlook the process of document verification. The American Board of Forensic Document Examiners (ABFDE) is the primary authoritative body responsible for monitoring forensic operations in the US, and any person carrying out these activities anywhere in the country must be a member of this board.

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The prevailing traditional methods of document verification have encouraged criminals to exploit loopholes in systems inflicting financial losses on users. In the recent past, several cases have surfaced where scammers try to manipulate documents resulting in credit card fraud, illegal immigration, fake admissions to international universities, and many others. Let’s have a look at some of the high-profile cases of document fraud in different countries.

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Canada

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Australia

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Dubai Sets up Special Court to Tackle Money Laundering

Forensic Document Verification – A New Standard

How Forensic Document Verification is Carried Out?

High-Profile Crime Cases of Document Fraud

Gang Arrested for Printing Fake Documents in Greece

Criminal Network Busted for Distributing Fake Documents

Regulatory Authorities Monitoring Document Fraud

Canada

Australia

Document Forgery Forensic Authentication – Ensuring KYC Compliance

What Shufti Pro Offers?

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Let’s prove your customer’s

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