United Arab Emirates cracks down on money laundering

One of the challenges of cracking down on financial crime is the global race to the bottom between havens trying to entice customers by offering more lucrative tax incentives or a higher degree of secrecy for companies.

When one jurisdiction institutes more transparency, other offshore destinations step in to fill the gap — a phenomenon that’s continually vexed local and international officials aiming to chase the secret money trails of tax dodgers and criminals.

One such destination is the United Arab Emirates, a growing hub for illegal money movements. Under pressure to do more to prevent money laundering, the country has responded by implementing rules around reporting ultimate beneficial owners.

Beneficial ownership databases have become an increasingly popular reform around the world in the aftermath of Panama Papers, which brought international attention to how corporate anonymity can enable a range of social ills. More recent ICIJ investigation such as FinCEN Files and Luanda Leaks, highlighted the Dubai’s rise as a go-to secrecy haven for those looking to hide illicit wealth.

Anisha Kohli, ICIJ’s new summer intern with the Emma Bowen Foundation, writes about questions and concerns onlookers have about the scope of the UAE’s new beneficial owner rules, and how effective the new law might be, along with Maggie Michael, our reporter in Cairo.