UAE CENTRAL BANK ACTIONS ON MONEY LAUNDERING

UNCLAS ABU DHABI 004426 SIPDIS SENSITIVE STATE FOR NEA/ARP, S/CT, INL/ENT, EB/ESC STATE PASS FEDERAL RESERVE TREASURY FOR ZARATE, GLASER, AND MURDEN E.O. 12958: NA TAGS: EFIN ETTC PTER ECON TC SUBJECT: UAE CENTRAL BANK ACTIONS ON MONEY LAUNDERING ¶1. (U) During the Annual Meetings of the IMF/WB in Dubai, the UAE Central Bank released detailed information on its money laundering investigations over the last two years. According to Assistant Executive Director Abdulrahim Sinkais Al-Awadi (in charge of the Anti Money Laundering and Suspicious Cases Unit (AMLSCU)),the AMLSCU analyzed 429 suspicious transactions reports received from banks and other financial institutions between August 2001 and May 2003. Nine cases have been prosecuted for money laundering and seizure of assets and are in the process of judgment. Twelve cases are being prosecuted. In 25 cases, accounts have been frozen and the cases referred to the prosecutor's office. ¶2. (U) Al-Awadi also discussed international cooperation between the AMLSCU and other Financial Intelligence Units (FIU). He said that the AMLSCU provides information to other FIUs whether or not it has an MOU regarding information sharing, but that other countries, including the US and UK require a MOU to share information. The UAE has referred 58 cases for assistance and has frozen 13 accounts based on information received. According to Al-Awadi, however, the AMLSCU has not received a response for most of its requests for assistance. Other FIUS have referred about 164 cases to the AMLSCU for assistance. As a result of these requests, the AMLSCU investigated and froze 23 accounts and provided information in all cases. In addition, the UAE has frozen 18 accounts totaling over $3 million in response to UNSC anti terrorist financing resolutions. ¶3. (U) Finally, Al-Awadi noted that the Central Bank has conducted 58 workshops on money laundering and terrorist finance for banks and other financial institutions. ¶4. (SBU) Comment: This is the most detailed information that we have seen the central bank publicly release on anti-money laundering activities. Based on our previous conversations with Al-Awadi, we believe that his remarks about the need for an MOU between the U.S. and the UAE refer to the MLAT currently under negotiation. End Comment. Wahba