UAE central bank orders freeze of Libyan assets

By EMAN EL-SHENAWI

The Central Bank of the United Arab Emirates has ordered the freeze on assets belonging to 19 Libyan individuals and institutions and expects to prepare a report on the decision within a week, an official said on Monday.

In the latest string of orders against suspicious funds belonging to individuals from ousted Middle East governments, the central bank has now instructed the country’s Gulf banks to “initiate a search” into the funds of unnamed Libyans, according to Reuters.

“We have instructed banks to initiate a search and have requested them to freeze the assets,” Abdulrahim Al Awadi, executive director at the UAE central bank’s anti-money laundering and suspicious cases unit, told reporters on the sidelines of a conference in Abu Dhabi.

“We are expecting within the next week or so to complete the report for submission to the ministry of foreign affairs,” he added.

The UAE has already frozen the assets of the Libyan leader Muammar Qaddafi and his close associates. Libya is still facing ongoing civil unrest where rebels are demanding an end to Mr. Qaddafi’s 41-year rule.

On Sunday the central bank revealed that it is to implement stricter money declaration rules in an effort to improve monitoring of suspicious cash flows.

The UAE is considered one of the region’s “safe havens,” particularly during the political unrest that swept countries in the Middle East and North Africa. Analysts said that Dubai attracted heavy investment inflows from the affected countries when the unrest peaked earlier this year.

In March, anti-corruption groups asked UAE authorities to take action over possible transfer of assets by ousted Egyptian and Tunisian rulers and their loyalists,

The UAE central bank earlier this month ordered a freeze on assets belonging to ousted Tunisian president Zine El Abidine Ben Ali whose trial on corruption charges began in Tunis on Monday.

The bank also launched a probe in April into the accounts, investments or deposits belonging to former Egyptian president Hosni Mubarak.

(Eman El-Shenawi, a writer at Al Arabiya English, can be reached at: eman.elshenawi@mbc.net.)

Source: Al Arabiya

Libya's Membership Application To MENAFATF Approved

Members of the anti-money laundering and anti-terrorist financing organization, the Middle East and North Africa Financial Action Task Force, or MENAFATF, approved Libya's membership application Tuesday, MENAFATF President Abdulrahim Al Awadi said.

"The plenary of 17 members approved the application of Libya to be a member and the application of the World Customs Organization to be an observer member," Al Awadi told reporters in Fujeirah, United Arab Emirates.

Libya will become the 18th member state of the organization, which was set up in November 2004 and includes Saudi Arabia, Bahrain, Oman, Sudan, Iraq and Egypt. The U.S., U.K., France and Spain are observer members, as well as the International Monetary Fund and the World Bank. The U.A.E. currently holds the presidency.

The U.A.E., which is keen to expand membership, also proposed that Djbouti, Comoros Islands, Seychelles and Maldives become members. The proposal is still being studied by member states.

Al Awadi added that the taskforce will meet next in Bahrain, which takes over the presidency of the organization in May 2009.

He also said that the global credit crisis won't draw attention away from fighting money laundering and terrorist financing.

"Members reiterate the financial crisis should not affect progress and, on the contrary, will add resolve to progress," Al Awadi said.

Source: Zawya