The United Arab Emirates (UAE) under pressure from the United States are tightening control over financial flows from Russia
Russian firms based in the United Arab Emirates will face closer scrutiny from local banks due to pressure from the United States.
"The UAE attracted a flow of Russian money in the first year after Russian dictator Vladimir Putin invaded Ukraine, and companies quickly and easily oriented themselves in banking operations," the material says.
The publication notes that this process is gradually becoming more difficult; refusals are becoming more common as the UAE show less inclination to risk associated with sanctions and seek to exit the so-called grey list.
It is noted that money transfers - whether for companies repatriating funds to Russia or for those transferring cash to a third country - have also become subject to stricter control and now take longer. Some banks require additional documentation and sometimes freeze funds, trying to justify the transfer or questioning the origin of the money.
The USA is increasing pressure on the UAE. In recent months, officials have sought to address obvious gaps in sanction compliance as the UAE seek to remove themselves from the list of jurisdictions subject to enhanced scrutiny by the Financial Action Task Force, a group aiming to combat global money laundering.
Meanwhile, the United States, United Kingdom, and European Union have intensified pressure on Emirati officials to combat illicit flows and close channels used by Moscow to bypass trade sanctions and finance the Kremlin's war machine.
"This month, the Biden administration 'struck' several shipping companies in the UAE as part of the effort to enforce oil price limits," Bloomberg writes.
What the UAE Government Says: A UAE representative stated that the country takes its role in safeguarding the integrity of the global financial system extremely seriously. "The enhanced resources and expertise we have deployed reinforce the UAE's unwavering commitment to combatting economic crime and disrupting illegal networks both domestically and abroad," said the official.
The UAE's Minister of State for Foreign Trade, Thani Al Zeyoudi, stated that as part of FATF investigations, UAE banks are requesting additional information from current and potential clients, including specific checks related to sanction lists.
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