The United Arab Emirates (“UAE”) has long been at the forefront of embracing technological and financial innovation. For example, Dubai has emerged as a global hub for virtual assets (“VAs”) and cryptocurrencies. Earlier this year, the Dubai Virtual Assets Regulatory Authority (“VARA”) adopted its first Virtual Assets and Related Activities Regulations 2023 (the “Regulations”), along … Continue Reading
Following concerns raised by the government of the United Kingdom (“UK”) about freedom of expression and the provision of banking services, the UK’s financial watch dog, the Financial Conduct Authority (“FCA”), recently commenced an investigation into bank account closures. This action follows in the wake of recent reports of banks allegedly closing customer accounts based … Continue Reading
The United Arab Emirates (“UAE”) has recently implemented a new compliance requirement related to the international importation of goods. Specifically, pursuant to UAE Cabinet Resolution No. 38 of 2022 on the Attestation of Documents, Commercial Invoices and Certificates of Origin at the Ministry of Foreign Affairs and International Cooperation (“MoFAIC”), all imports into the UAE … Continue Reading
In our previous post, here, we explained how the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) used its authority under the Global Magnitsky Human Rights Accountability Act (“GloMag”) to sanction brothers Ajay, Atul and Rajesh Gupta (the “Guptas”), and their business associate Salim Essa, effectively barring them from the U.S. financial … Continue Reading
Earlier this year, we published a post on the first Tri-Seal Compliance Note (“First Note”) issued by the United States Department of Justice’s (“DOJ”) National Security Division (“NSD”), the Department of Commerce’s Bureau of Industry and Security (“BIS”), and the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”).[1] When issuing the First Note, … Continue Reading
On September 13, 2022, Judge Abdul Rahman Murad Al-Blooshi, Director of the International Cooperation Department of the UAE Ministry of Justice, issued a communiqué to His Excellency Tarish Eid Al-Mansoori, Director General of the Dubai Courts, directing the Dubai Courts to enforce judgements issued by the English Courts (the “Directive”). This follows the English Courts’ … Continue Reading
The Saudi Central Bank (previously known as the Saudi Monetary Authority, or SAMA) has published the third edition of the Key Principles for Governance in Financial Institutions (the “Guide”), which are intended to enhance management styles, set direct and indirect strategic objectives, maintain stability, and promote the rights of stakeholders.… Continue Reading
On September 16, 2022, the U.S. Department of the Treasury (“Treasury”) published three reports in response to a March 2022 Executive Order concerning the development of digital assets. The reports address the future of money and payments; implications for consumers, investors, and businesses; and the illicit financing risks of digital assets. Secretary Yellen described the … Continue Reading
On August 8, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned virtual currency mixer Tornado Cash for having laundered more than USD 7 billion worth of virtual currency since its founding in 2019. This includes over USD 455 million worth of stolen virtual currency associated with the Lazarus Group, … Continue Reading
“Russia should not benefit from European knowledge and expertise.” That is the view of European Commission (“EC”) President Ursula von der Leyen, who recently proposed an eighth package of sanctions against Russia in response to “escalation” in Ukraine. Among the “biting” new sanctions will be a wider ban on the provision of European services to … Continue Reading
On September 16, 2022, the U.S. Department of Justice (“DoJ”) issued a report on The Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets (the “Report”), which will have a significant and wide-ranging impact on the U.S. government’s ability to investigate, prosecute, and disrupt crimes involving digital assets. The … Continue Reading
The U.S. Department of Justice announced late last year that it would utilize the False Claims Act, the U.S. government’s primary civil tool to redress false claims for federal funds and property, to bring actions against U.S. government contractors and subcontractors who do not meet the cybersecurity requirements of a particular contract or grant. The … Continue Reading
The United Arab Emirates (the “UAE”) continues to lead the Arab world in terms of its anti-bribery and corruption (“ABC”) endeavors. The UAE offers a business-friendly environment with an effective and efficient public administration; it criminalizes active and passive bribery, embezzlement, abuse of functions, and facilitation payments, it enforces its domestic ABC legislation and it … Continue Reading
The Central Bank of the UAE (“CBUAE”) has issued new guidance (the “Guidance”) to UAE financial institutions providing services to cash-intensive businesses. The specific characteristics of cash—anonymity, interchangeability, and transportability—make it an attractive medium for illicit actors seeking to obfuscate the proceeds of crime or the funding of terrorism. Unlike other monetary instruments, such as … Continue Reading
On August 22, 2021, at the directive of His Highness Sheikh Mohammed bin Rashid al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Dubai Courts announced the establishment of a specialized new court that will focus on combating money laundering. The announcement comes just months after the UAE Cabinet approved … Continue Reading
On June 7, 2021, the UAE Central Bank issued new guidance requiring all UAE financial institutions to file suspicious activity reports (SARs) or suspicious transaction reports (STRs) with the UAE’s Financial Intelligence Unit (FIU) using the goAML portal within 35 calendar days of detection of any conduct that they reasonably suspect may be linked to … Continue Reading
On April 30, 2021, Ministers in Saudi Arabia approved a new law, due to come into force in September of this year, which is designed to enhance the Kingdom’s efforts to combat financial crime.… Continue Reading
Over the past few months, numerous organizations and agencies—including the intergovernmental Financial Action Task Force, UK Financial Conduct Authority, Dubai Financial Services Authority, and U.S. Financial Crimes Enforcement Network—have stressed the need to preserve the integrity and security of the global payments system during and after the pandemic.… Continue Reading
In an earlier post, here, we scrutinized the form and content of the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)’s March 6, 2020 guidance pertaining to the provision of humanitarian goods and assistance to the people of Iran consistent with U.S. sanctions. In this concluding post, we discuss the factors the … Continue Reading
On March 6, 2020 and in response to an outbreak of coronavirus in Iran, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued guidance pertaining to the manner in which humanitarian goods and assistance may be provided to the people of Iran consistent with U.S. sanctions against Iran. This two-part post … Continue Reading
On April 20, 2020, the Industrial Bank of Korea (IBK) and its New York branch (IBKNY) (collectively, “the Bank”) entered into a Deferred Prosecution Agreement (DPA) with the U.S. Attorney’s Office for the Southern District of New York (SDNY), a non-prosecution agreement (NPA) with the New York Attorney General, and a Consent Order (the “Consent … Continue Reading
On March 31, 2020, the United Kingdom’s Office of Financial Sanctions Implementation (OFSI) levied its largest monetary penalty to date of GBP 20.47 million. OFSI penalized Standard Chartered for loans to Denizbank, a Turkish bank that was majority owned by Sberbank, a state-owned Russian bank. Accordingly, those loans violated European Union restrictions on making certain … Continue Reading
The onshore and offshore courts of the United Arab Emirates (UAE)—that is to say, the courts in “mainland” UAE and the courts in the free zones of the UAE, respectively—have issued a number of recent convictions for fraud. In one noteworthy case, the Dubai Court held a local bank responsible for an AED 4.7 million … Continue Reading
Following a ruling issued last week by a federal judge in Texas, ExxonMobil Corporation (“ExxonMobil”) will not have to pay a previously issued penalty for contracting with Russia’s state-owned PJSC Rosneft Oil Company (“Rosneft”), since it was not provided fair notice by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) that … Continue Reading
