UAE BREAKS-UP DRUG MONEY LAUNDERING RING

C O N F I D E N T I A L ABU DHABI 000383 SIPDIS SIPDIS DEPARTMENT FOR NEA/ARP, INL, EEB/ESC/TFS TREASURY FOR ACURTIS E.O. 12958: DECL: 03/06/2017 TAGS: SNAR KCRM EFIN CASC AE SUBJECT: UAE BREAKS-UP DRUG MONEY LAUNDERING RING REF: DUBAI 135 Classified By: Ambassador Michele J. Sison for reasons 1.4 (b &d). ¶1. (C) In a move widely reported by the UAE press on February 26, Dubai police broke up an international money laundering ring using the UAE's financial system. Ahmed Al-Qamzi, Head of the Central Bank's Anti Money Laundering and Suspicious Cases Unit's International Division told econchief that -- contrary to the original press reports -- the financial institutions involved were regulated money changers not Hawala dealers. Al-Qamzi said that the predicate crime was drugs and that the UAE would be confiscating the assets. Al-Qamzi stated that the Central Bank and the Dubai police had kept the investigation, "Operation Cancer ", quiet for almost two years (Note. The primary target of Operation Cancer is Naresh Jain Patel. Endnote). Al-Qamzi stated that the Central Bank would now be reaching out internationally to try and develop more information. In response to Econchief's question about the original source of the information for the investigation, Al-Qamzi stated that it was primarily "intelligence" information as well as suspicious transaction reporting. Al-Qamzi also confirmed that an AMCIT of Lebanese origin had been arrested and that the Dubai police had been in contact with the Consulate General about the case (Reftel). ¶2. (U) According to press reports, the Central Bank ordered financial institutions to freeze the assets of and prevent any financial transfers in the name of the main suspects, the companies involved, and "those who assisted them." Dubai police arrested "a number" of people, shut several offices, and confiscated "large sums" of money. Dubai police stated that nine companies were involved in the money laundering as well as Asian, European, and American nationals. ¶3. (C) Comment: This is an encouraging example of UAE interagency cooperation. The UAE has also worked cooperatively with DEA and the British Serious Organized Crime Agency (SOCA) liaisons in Dubai on this case. Although the UAE has had previous money laundering prosecutions, this is one of the few that we have seen making it into the press. End Comment. SISON