Finance

Dubai busts global money laundering gangs

December 27, 2024, 4:59 PM

Dubai has broken up money laundering operations worth almost $175 million

Two operations foiled
Total of $174.5m
Cryptocurrencies used

Dubai has broken up two major international networks conducting money laundering operations worth a total of AED641 million ($174.5 million).

The Dubai Public Prosecution referred an Emirati national, 21 British nationals, two Americans, a Czech national, and two companies owned by the Emirati national to the Criminal Court of First Instance at Dubai Courts.

The individuals and entities face charges of possessing illicit funds of AED461 ($125.5 million) as well as forgery of official documents and their use, according to a report from Dubai Media Office.

Investigations revealed that funds were smuggled from the UK to UAE using the two local companies as fronts to disguise their illicit origins.

The network used forged documents and bypassed customs inspections by falsely declaring the funds as proceeds from legitimate trade in the UK.

In another successful operation, a collaboration between Dubai Economic Security Centre and the Public Funds Prosecution in Dubai disrupted an international organised crime network involved in money laundering operations worth AED180 million ($49 million) using cryptocurrencies.

The Dubai Public Prosecution has referred the case involving a network of 30 individuals and three companies to the Money Laundering Court at Dubai Courts.

The network, which conducted complex money laundering operations worth AED180 million using cryptocurrencies, operated across the UK and Dubai.

Investigations revealed that the network laundered cash in the UK through unlicensed cryptocurrency intermediaries.

The accused, identified as two Indian nationals and one British national, orchestrated the scheme, which included proceeds from illegal activities such as drug trafficking, fraud and tax evasion in the UK.

In February this year the Financial Action Task Force (FATF) removed the UAE from its so-called grey list, in recognition of the Gulf state’s efforts to curb illicit financial flows.

The FATF – an intergovernmental organisation established to combat money laundering and terrorist financing – placed the Gulf state under enhanced supervision, known as the grey list, in March 2022, citing weaknesses in systems to fight financial crime and combat the financing of terrorism.