26 April 2006
DUBAI, United Arab Emirates -- Money launderers in Dubai are changing their ways to keep up with technological advances and are posing a "serious problem" in the emirate, prompting authorities to step up their measures to counter the crime.
Dubai officials say that money laundering in this fast-growing economy is on the increase, and that they are receiving complaints from people being approached by launderers through e-mails or mobile text messages.
According to Dubai's deputy director of community services, Brigadier Mohammad Saeed Al Merri, the popularity of online banking and the rapid growth of the IT sector have contributed to the rise in money laundering attempts.
"There are many types of thieves using e-mail, Internet or text messages," Merri told the local press. "The crime of fraud existed years ago, but it has developed and the fraudsters have changed their traditional methods to adapt to the modern age."
"Now they are sending messages to many people randomly via technical devices," he added.
Observers say that Dubai's diverse economy and multi-national population makes it an attractive destination for money launderers. There are too many people of different nationalities and all have bank accounts or investments in one sector or the other.
Police statistics show that the number of complaints from the public concerning money laundering has tripled between 2004 and 2005.
Those approached by launderers said that they received anonymous e-mails or text messages offering them premiums to deposit millions of dollars in their bank accounts. A substantial number of these e-mails originated from Africa, police say.
Attractive as such offers may be, authorities are warning the public to steer away from these "get rich quick" scams.
"Such people have a direct hand in the expansion of the phenomenon of money laundering," Merri warned.
Those involved in money laundering could face harsh jail sentences - up to 15 years - as well as hefty fines, according to UAE laws.
Advising people against opening mail from unknown users and to avoid communicating bank account details to others, Dubai has set up a 24-hour hotline for residents to report suspicious or criminal activities and is calling on those being approached to launder money to immediately report the incidents to the authorities.
Also in response to the rise in money laundering, the UAE's central bank is closely monitoring monetary activities here and keeping a close eye on charities and NGOs.
"We are working in response to international calls to follow up and monitor operations and activities of charities to ensure that their funds are not used by terror groups," UAE Central Bank governor Sultan Bin Nasser Al Suwaidi said, adding that the "tough measures" adopted by the UAE have contributed greatly to curbing financial crime.
The law governing NGOs in the UAE is currently being amended in conformity with international requirements and the recommendations of the Financial Action Task Force here. Officials, however, did not disclose the nature of these amendments.
A few attempts to launder money through the UAE have been impeded this year, but further international cooperation is needed to stamp out money laundering and financing of terrorism, officials say.
The UAE is committed to upgrading systems and legislation to counter laundering and other financial crimes, which are becoming more and more sophisticated and innovative, they add.
"There are two parties in such cases, one outside the country and one inside and it can get confusing sometimes," said Suwaidi during a joint seminar on anti-money laundering efforts between the UAE and the UK last month. "Combating money laundering is a gradual process that will take years and a joint effort ... so international cooperation is needed," he added.
Both countries signed a MoU for intelligence sharing between their respective financial intelligence units.
Describing money laundering as a problem for all financial centers around the world, David Armond, the deputy director of the UK's Serious Organized Crime Agency, said that London is working hard to combat this particular crime.
"Fighting this crime is an important part of the UK's government's agenda, it is an important part of international efforts," he said.
DUBAI, United Arab Emirates -- Money launderers in Dubai are changing their ways to keep up with technological advances and are posing a "serious problem" in the emirate, prompting authorities to step up their measures to counter the crime.
Dubai officials say that money laundering in this fast-growing economy is on the increase, and that they are receiving complaints from people being approached by launderers through e-mails or mobile text messages.
According to Dubai's deputy director of community services, Brigadier Mohammad Saeed Al Merri, the popularity of online banking and the rapid growth of the IT sector have contributed to the rise in money laundering attempts.
"There are many types of thieves using e-mail, Internet or text messages," Merri told the local press. "The crime of fraud existed years ago, but it has developed and the fraudsters have changed their traditional methods to adapt to the modern age."
"Now they are sending messages to many people randomly via technical devices," he added.
Observers say that Dubai's diverse economy and multi-national population makes it an attractive destination for money launderers. There are too many people of different nationalities and all have bank accounts or investments in one sector or the other.
Police statistics show that the number of complaints from the public concerning money laundering has tripled between 2004 and 2005.
Those approached by launderers said that they received anonymous e-mails or text messages offering them premiums to deposit millions of dollars in their bank accounts. A substantial number of these e-mails originated from Africa, police say.
Attractive as such offers may be, authorities are warning the public to steer away from these "get rich quick" scams.
"Such people have a direct hand in the expansion of the phenomenon of money laundering," Merri warned.
Those involved in money laundering could face harsh jail sentences - up to 15 years - as well as hefty fines, according to UAE laws.
Advising people against opening mail from unknown users and to avoid communicating bank account details to others, Dubai has set up a 24-hour hotline for residents to report suspicious or criminal activities and is calling on those being approached to launder money to immediately report the incidents to the authorities.
Also in response to the rise in money laundering, the UAE's central bank is closely monitoring monetary activities here and keeping a close eye on charities and NGOs.
"We are working in response to international calls to follow up and monitor operations and activities of charities to ensure that their funds are not used by terror groups," UAE Central Bank governor Sultan Bin Nasser Al Suwaidi said, adding that the "tough measures" adopted by the UAE have contributed greatly to curbing financial crime.
The law governing NGOs in the UAE is currently being amended in conformity with international requirements and the recommendations of the Financial Action Task Force here. Officials, however, did not disclose the nature of these amendments.
A few attempts to launder money through the UAE have been impeded this year, but further international cooperation is needed to stamp out money laundering and financing of terrorism, officials say.
The UAE is committed to upgrading systems and legislation to counter laundering and other financial crimes, which are becoming more and more sophisticated and innovative, they add.
"There are two parties in such cases, one outside the country and one inside and it can get confusing sometimes," said Suwaidi during a joint seminar on anti-money laundering efforts between the UAE and the UK last month. "Combating money laundering is a gradual process that will take years and a joint effort ... so international cooperation is needed," he added.
Both countries signed a MoU for intelligence sharing between their respective financial intelligence units.
Describing money laundering as a problem for all financial centers around the world, David Armond, the deputy director of the UK's Serious Organized Crime Agency, said that London is working hard to combat this particular crime.
"Fighting this crime is an important part of the UK's government's agenda, it is an important part of international efforts," he said.
By Natasha Bukhari
© Middle East Times 2006
