Anti-Money Laundering Regulation and Practice of Islamic Banks in the United Arab Emirates: A Case Study

IF 0.4 Q3 LAW

Law and Development Review Pub Date : 2020-06-01 DOI:10.1515/ldr-2020-0048

Ajay Kumar

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引用次数: 0

Abstract

Abstract Banks are key institutions in the economic development of a country, but they are prone to money laundering (ML) as well. Such incidents could lead to sanctions and loss of reputation. To mitigate such risks, banks are required to follow Anti-Money Laundering (AML) regulations. Presently, there are no separate or specific AML regulatory requirements for Islamic banks (IBs). Apart from regulations, understanding practices also help explicate compliance to laws (spirit), by those who apply it. Since the AML practices of IBs have not been systematically analysed, we look at their practices (the United Arab Emirates) to understand whether they have adopted specific AML processes. Owing to the lack of literature on such practices, a survey was carried out using a standard questionnaire. The questionnaire was supplied to the AML/compliance departments, and the results are based on a sample size of three banks. The survey results show that the IBs adopt Know Your Customer (KYC) and Customer Due Diligence (CDD) to check laundering. Crucially, questions pertaining to the AML risk arising from the potential vested interest/s (theoretical) that the IBs themselves are likely to have in the venture remain unanswered.

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阿拉伯联合酋长国伊斯兰银行反洗钱监管与实践:个案研究

银行是一个国家经济发展的关键机构，但同时也容易发生洗钱活动。这类事件可能导致制裁和名誉损失。为了降低此类风险，银行必须遵守反洗钱(AML)法规。目前，对伊斯兰银行(ib)没有单独或具体的反洗钱监管要求。除了规则之外，理解实践也有助于阐明那些应用它的人对法律(精神)的遵从。由于ib的“反洗钱”实践尚未得到系统分析，我们研究了它们(阿拉伯联合酋长国)的实践，以了解它们是否采用了特定的“反洗钱”流程。由于缺乏关于这种做法的文献，因此使用标准调查表进行了调查。调查问卷已提供给反洗钱/合规部门，调查结果基于三家银行的样本量。调查结果显示，银行采用了解客户(KYC)和客户尽职调查(CDD)来检查洗钱行为。至关重要的是，与“反洗钱”风险有关的问题，仍未得到解答，这些问题源于投行本身在合资企业中可能拥有的潜在既得利益(理论上的)。

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来源期刊

Law and Development Review LAW-

CiteScore

0.90

自引率

0.00%

发文量

期刊介绍： Law and Development Review (LDR) is a top peer-reviewed journal in the field of law and development which explores the impact of law, legal frameworks, and institutions (LFIs) on development. LDR is distinguished from other law and economics journals in that its primary focus is the development aspects of international and domestic legal orders. The journal promotes global exchanges of views on law and development issues. LDR facilitates future global negotiations concerning the economic development of developing countries and sets out future directions for law and development studies. Many of the top scholars and practitioners in the field, including Professors David Trubek, Bhupinder Chimni, Michael Trebilcock, and Mitsuo Matsushita, have edited LDR issues and published articles in LDR. The journal seeks top-quality articles on law and development issues broadly, from the developing world as well as from the developed world. The changing economic conditions in recent decades render the law and development approach applicable to economic issues in developed countries as well as developing ones, and LDR accepts manuscripts on law and economic development issues concerning both categories of countries. LDR’s editorial board includes top scholars and professionals with diverse regional and academic backgrounds.