Is Dubai Really A Money Laundering Haven?
As you probably know, Dubai has recently been a global hub for real estate business. The success of Dubai has been extraordinarily prominent that made some people think Dubai is a money laundering haven. But “Is this really true about Dubai?” Read this to the end…
Money Laundering Through Dubai Real Estate?
As said earlier, Dubai has been highly successful in real estate business in the past few years. In addition, a large part of UAE’s wealth comes from real estate leading to a sharp increase in the UAE’s GDP. For instance, Palm Jumeirah (the largest man-made island in the world), Dubai Marina, and The World Island are high-end communities in Dubai offering a wide array of luxurious properties. There are a large number of ultra-luxurious apartments and villas for sale in these communities that people can buy with no restrictions.
This is why some people claim that a significant part of UAE’s wealth might come from money laundering through real estate business. They say that most of UAE’s wealth originates from illegal ways, and it is washed through real estate business. But to what extent can be this true?
Laws And Regulations In The UAE
It is claimed that the wealth of the UAE comes from far beyond the sands of the UAE in fact. Claimers are also of the opinion that there are low barriers in the UAE that impede the movement of funds. But, the truth is that the laws and regulations in the UAE do not allow such illegal acts to be done. Here are some of them:
- There are restrictions on moving cash in the UAE; for instance, a person is not allowed to move a huge amount of cash to his/her own bank account
- The real estate developers do not accept cash
- All the real estate deals are done through check or bank transfer
- There aren’t other ways of moving money like BGL
- When someone wants to buy a property in Dubai, the money must come from a certain source
- If there is a huge amount of money in developer’s bank account coming from an uncertain source, The Central Bank will block the money
The UAE Becomes Even More Rigorous
The government of United Arab Emirates on October 30, 2018 announced that it will enforce more rigorous anti-money laundering laws to combat The Financing of Terrorism and Illicit Organizations. Based on this law, the government of the UAE has an independent committee inside The UAE’s Central Bank to deal with any illicit financing. In addition, according to this law, all the financial institutions including non-profit companies are monitored to ensure their commitment.
According to the above, The UAE not only isn’t a haven for money laundering, but also it is a paradise for investors from all around the world. This is a perfect place for you to step into one of the most lucrative investments without fear of losing money or any uncertainty about your investment. Dubai has always done its best to make international investors satisfied!