Documentary credits from Saudi Arabia are to be monitored closely by bank officials in the United Arab Emirates (UAE). This forms part of a wider agreement announced earlier this month in which the two countries agreed to cooperate in efforts to stem the flow of suspected terrorist and other illicit funds.

All banks in the UAE must now provide their Central Bank with details of entities that transfer Dhs2 million (US$544,537) or more into UAE accounts within a maximum of six months after deduction of funds relating to money market transactions or documentary credits.

Remittances returned

Banks in the UAE must provide details of remittances made by individuals that transfer Dhs500,000 (US$136,135) or more. They must also provide Suspicious Transactions Reports in every instance when a transfer of Dhs40,000 (US$10,891) or more is received from Saudi Arabia to be paid to a beneficiary in cash.

Banks in the UAE receiving a remittance or demand draft from Saudi Arabia worth100,000 riyal (US$26,664) or more must obtain a Certificate of Remittance from the remitting bank or the issuer of the demand draft in Saudi Arabia. Non-certified remittances will be returned to the remitter uncashed.

Suspicions

The Central Bank is to issue a list of accounts that will not be permitted to receive transfers from Saudi Arabia.

Financial transactions initiated in the UAE are alleged to have provided funds for the hijackers in the 11 September attacks on the US. Suspicions that Saudi funding continues to support terrorist activities have been widely reported.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.