On Wednesday, the UAE Central Bank reinstated that it has zero-tolerance for non-compliance with AML regulations and expects that all banks in the country including foreign banks operating in UAE strictly comply with regulations and violation of any kind would land such bank in trouble. The UAE Central Bank commenced a close contact with the home regulator of a Pakistani bank operating in the country following a report of irregularities in dealing with politically exposed clients and in investigating transactions. The Central Bank will take appropriate regulatory action as soon as findings are confirmed. News has it that the Financial Action Task Force initially concluded findings in the first half of 2019 and put Pakistan on its watchlist.
It was reported that some employees of the Pakistani bank in UAE allegedly assisted some clients to disguise transactions by issuing pay orders in their name. Some of these clients included Duduzane Zuma, the son of former South African President and for the relatives of Gabonese President Ali Bongo. However, in a final inspection report, Pakistan’s Central bank had indicated that the UAE-based lender took certain measures to improve compliance with anti-money laundering regulations.
When put on monitoring list in June 2018, Pakistan promised to effect measures that will ensure compliance, however, it has not made sufficient progress, said the FATF president in October 2019.