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UAE Regulatory Authority Enforces Import Invoice Verification to Fight Trade-Based Money Laundering

Richard M. SEPTEMBER 6, 2023 1 minute read

United Arab Emirates (UAE) has implemented the latest compliance regulations for importing commodities to counter money laundering and terrorism financing.

UAE’s newly designed framework for importing goods from international orders attesting the invoices of products is obligatory. The UAE government bolstered the regulations under Cabinet Resolution No.38 of 2022. It is mandatory to attest the papers, commercial invoices, and other certificates from the Ministry of Foreign Affairs and International Corporation (MoFAIC). All the goods imported in the UAE worth AED 10,000 and more must follow the commercial invoices and other documentation by MoFAIC. Compliance with these regulations could provide a positive outcome by a reduction in Trade-Based Money Laundering (TMBL).

For the attestation of the document, consumers can do it electronically from the MoFAIC website or local customs office. The user must have paid AED 150 as a fee for attestation, which can be paid within 14 days after the customs declaration. Non-compliance with these obligations can cause hefty fines and serious consequences. To safeguard from these fines, businesses must ensure compliance procedures and update their measures according to MoFAIC obligatory rules.

Global trade has become a significant alluring channel for scammers seeking illicit activities due to the rapid growth of the world’s economy and the intensive focus on reducing traditional money laundering threats to the financial industry. It is hard for the regulatory authorities to monitor the source of funding in the import business because of national or international cross borders.

Some of the more common TBML tactics include over-invoicing, under-invoicing, and multiple invoicing. That’s why inconsistent or insufficient paperwork is one of the most prominent red flags. For these reasons, the new regulation allows the UAE to keep fighting money launderers.

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