ABU DHABI — For the first time, the United Arab Emirates has frozen
accounts of companies thought to be funneling cash to terrorist organizations.
The UAE Central Bank has frozen the accounts of so-called hawala
operators and foreign companies alleged to have laundered money or
transferred funds to insurgency groups. Officials said the move came amid a
new bank policy to monitor financial institutions and money-changers in the
UAE.
"The UAE Central Bank, in view of the reports received from Dubai Police
General Headquarters, issued a notice to all banks and money-changers,
operating in the country instructing them to freeze the accounts of the main
suspects, those who assisted them as well as the nine companies involved in
the case," the Dubai police said on Feb. 25.
The UAE media have reported that the Central Bank froze the assets of
American, Asian and European companies suspected of being involved in
money-laundering, Middle East Newsline reported. Dubai police have acknowledged that nine foreign companies
were under investigation, but did not elaborate.
The United States has pressed the UAE to increase restrictions on hawala
operators, who transfer funds from Asian expatriates to their families in
such countries as Bangladesh, India, Pakistan and Sri Lanka. Despite U.S.
appeals, however, hawala operators have operated largely free of official
supervision.
But in late February, Dubai police launched a major crackdown on hawala
operators. Officials said several operators were arrested in the center of
the UAE port city and police confiscated foreign currency.
"Police officials have rounded up a number of hawala operators from
their offices in downtown Deira and shut their operations near the Gold Souq
and Murshid Bazaar -- Dubai's major wholesale market, forcing others to go
underground," an official told the Abu Dhabi-based Gulf News.
In late 2005, the UAE established a unit to combat money-laundering.
The Central Bank unit, formed with Dubai police, has sought to increase
monitoring of financial transactions.
"The above measures fall within the firm policy framework of the UAE in
combating financial crimes, including money laundering and terrorism
financing, as well as the country's determination to support international
efforts in this regard," the Central Bank said.
