Dubai regulators to keep tabs on money laundering

Dubai's financial services authority will remain on guard against money laundering because such safeguards are needed to attract foreign capital, its chief executive said on Wednesday, and indicated a merger between the Dubai and Abu Dhabi stock exchanges could be an "important" development in the Middle East financial system.

"We will continue with our anti-money laundering efforts, systems and controls," Paul Koster told Dow Jones Newswires yesterday on the sidelines of a banking conference. "We are serious."

His comments follow May's Dh1.1 million fine which the regulator slapped on the local branch of an online broker for breaching its anti-money laundering systems and controls.

Commenting on the likelihood of a merger between the two stock exchanges, Koster said: "That is a political issue. But I would say consolidation is very important.

Talks of a possible merger have been on for a while as exchange operators globally are seen seeking new synergies and moving toward consolidation.

Earlier this year, Germany's Deutsche Borse AG and NYSE Euronext announced a takeover pact, while London Stock Exchange Group and Toronto's TMX Group said they have reached a deal to merge operations.

Russia's top exchanges, Micex Group and RTS, had announced their plan to merge, and in October last year, Singapore Exchange announced an $8.3 billion (Dh30.48 billion) offer for all the shares of ASX, the operator of the Australian Securities Exchange.

Source: Gulf News