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27 December, 2005

Very dirty laundry

Billions of dollars are laundered in Dubai every year, through organised crime such as arms smuggling, drugs smuggling and prostitution, according to Dubai police expert Laurence Al Moalim:

"Though mainly European, the offenders belong to other parts of the world too. No UAE national has so far been convicted of these crimes. Dubai and Bahrain used to be transit points for launderers," he added.

Dubai's "attractive" financial structure is partly to blame, with its tax-free status. A thriving hawala system, due to a huge population of low-wage Asian expats, also facilitates the transfer of black funds, as does the emirate's famous gold souq.

As Al Moalim and even the CIA note, Dubai and UAE Federal authorites are making efforts to fight money laundering. But the country's strategic location, and historical status as a trading hub, make it vulnerable:

But Dubai also serves as the region's criminal crossroads, a hub for smuggling, money laundering, and underground banking. There are Russian and Indian mobsters, Iranian arms traffickers, and Arab jihadists. Funds for the 9/11 hijackers and African embassy bombers were transferred through the city. It was the heart of Pakistani scientist A. Q. Khan's black market in nuclear technology and other proliferation cases. Half of all applications to buy U.S. military equipment from Dubai are from bogus front companies, officials say. "Iran," adds one U.S. official, "is building a bomb through Dubai."

Dubai authorities and the new DIFC have a tough battle ahead.

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3 Comments:

Blogger humblemuslimah said...

I think America should clean up their act before critcising other nations. They went to war on false allegations . The Cia were into selling arms illegally and drugs for that matter.

Dubai is only a small drop in the ocean besides the larger crimes of larger nations not that I am condoning them.

27 December, 2005 11:26  
Anonymous Anonymous said...

was JFK gay ?

18 March, 2007 10:34  
Anonymous Anonymous said...

i think ha was

31 January, 2010 11:47  

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