UAE monetary authorities have warned local banks they must stick to rules requiring freezing any suspected financial account listed by the United Nations.
In a letter sent to the 51 banks in the second largest Arab economy, the Central Bank said the UAE is fully committed to all UN decisions involving freezing or canceling all accounts held by suspected persons or establishments.
The letter urged all banks and other financial and investment institutions to check the list of suspected persons on UN websites before embarking on any freeze measures.
“Banks should not freeze or refuse any account unless suspected persons and their details are fully compatible with those in the UN lists…in case of any doubt, you are asked to contact the anti-laundering unit at the Central Bank,” said the letter, which was published on Monday by the Arabic language daily Alkhaleej.
“Any banks or other financial institutions which do not abide by these rules will be subject to severe penalties in the UAE and outside.”
The UAE was among the first Arab countries that introduced anti-laundering laws in early 2000s within a strategy to curb funds used in supporting terror and other illegal activities. Scores of accounts have been frozen by UAE banks because of their involvement in laundering or in line with UN decisions.
The UAE has the largest Arab banking system, with the combined assets of its 23 national banks and 28 foreign units standing at Dh1,764 billion at the end of September 2012, more than 15 per cent of the overall Arab bank assets.
Emirates 24|7
