UAE Authorities to Coordinate Efforts Against ML/TF Among NPOs
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The UAE’s Ministry of Community Development and the Financial Intelligence Unit have established a joint mechanism to overcome financial crimes in the non-profit sector.
As announced by Hessa bint Essa Buhumaid, Minister of Community Development, and Minister of State Ahmed Al Sayegh, the cooperation is aimed at collecting information on non-profit organizations in relation to instances of money laundering and terrorist financing.
According to the National News, the coordinated efforts will help establish a secure electronic link through which the exchange of information will be made possible.
The UAE Financial Intelligence Unit and the Ministry of Community Development are making efforts in cooperation with all the relevant authorities in order to prevent the risks that donors face by protecting their money from being used in terrorist financing or funding illicit organizations.
The UAE being the second-largest economy in the Arab world imposes stringent laws for the prevention of money laundering and terrorist financing. In the past few years, the country has issued several regulations to prevent financial crimes.
For instance, the Executive Office of Anti-Money Laundering and Counter-Terrorism Financing was established earlier this year for the purpose of dealing with money launderers and criminals suspected of organized crime and terror financing.
In November 2020, an Anti-money laundering department was established by the Ministry of Economy, at the same time when Abu Dhabi established a court for the specific purpose of combating money laundering and tax evasion.
“The Ministry of Community Development and the UAE Financial Intelligence Unit will co-operate with all concerned authorities that perform an active role in our economy and protect donors and their money from the risks of exploitation in financing terrorism and financing of illicit organizations, to enable effective enforcement of countering financial crimes of all kinds and forms,” Ali Faisal Ba’Alawi, head of the FIU, told Wam.
Furthermore, an assistant under-secretary of social welfare at the MoCD, Nasser Ismail, said that the ministry is eager to collaborate with regulatory bodies that monitor the UAE’s non-benefit public associations in order to comply with international standards issued by the Financial Action Task Force.
These include the standards to combat money laundering, terrorist financing, and the proliferation of weapons.
Suggested read: Know Your Donor (KYD) – Customer Due Diligence For Charities and NPOs
