In a fight against money laundering, more than 200 law corporations are ceased to function for the whole month because of disobeying the laws set by the government of the UAE. These firms also have a license to operate in the UAE.
The announcement was released recently by the established order. If any lawyer is found guilty of not following the order, then legal action will be taken against him. A legal action includes the cancellation of licenses, heavy monetary fines as well as suspension of all the operations.
Different law firms in the UAE are also recommended taking an important course of action to ensure safety against anti-laundering commitment. All the law firms are asked by the UAE Ministry of Justice to take any legal action against those who disobey the law.
Anti-money laundering laws
Anti-money laundering platforms in the UAE are mainly based on federal laws. These laws are developed to meet the standards of the international level under the recommendations of the authorities. These laws must be followed by the law firms in order to keep on functioning.
Laws associated with money laundering
Federal Decree (20) of 2018 is based on money laundering and other policies that are part of the ministerial initiatives of the UAE in dealing with the risks associated with financial crimes. The suspension will only be lifted under special circumstances.
The suspension order will be lifted from those law firms whose in charge lawyers of legal management offices provide sufficient proofs. This evidence must prove that the law firms are getting out of their processes following the UAE Ministerial Resolution (533) of 2019.
The UAE law firms have also played a role in eliminating the chances for money laundering and have been highlighted by the authorities. These law firms also had a part of the UAE’s authority and a requirement for lawyers in sharing the burden of responsibilities in the fight for crimes.
While handling the clients and maintaining records, lawyers need to be very cautious about the risks of identifying any doubtful transaction. They need to record any unusual activity related to money and report it by following the laws.
DIFC Anti-money laundering agreement
Under federal laws, the firms are required to choose risk-based strategies in combating money laundering. They must maintain multiple programs comparable to money laundering risks and face some procedures:
- Transaction monitoring
All the law firms and the companies dealing with money need to maintain a strict check and balance on customer transactions. They should monitor all accounts of their clients for any activity that gives a hint about money laundering.
These actions include limit exceeding or suspicious transaction arrangements as well as transactions involving those countries who are already at high risk of money laundering.
Financial and law companies require to monitor the activities of their clients for any antagonistic media person. They also need to screen customers who are politically exposed as well.
Progress of the UAE in combating money laundering
The government has already cut out so many initiatives in the fight against financial crimes and money laundering. The systems have applied a plan at the national level in limiting the white-collar crime within the borders of the UAE, according to the statement released by the Central Bank.
The local systems have established numerous platforms to aid partners in making strategies and all other stakeholders. To create cognizance concerning financial crimes, they have obeyed all measures that have embraced international standards.
Platforms implemented by the government
To detect white-collar crimes, a new platform has been developed by using the latest technology. By building this policy, the capacity of the nation will toughen its ability to impose financial consents in accordance to repress the growth of financial crimes.
There are so many local, national, and international banks working in the UAE nowadays with following the strict rules and regulations. These laws are for protecting people into getting indulge in financial crimes as well as money laundering.
In previous years, the UAE was one of the countries that are employing platforms for reporting crimes. Banks, insurance companies, and money exchange centers, etc. including other thousand corporations, are helping the government in controlling the illegal financial offenses.