THE EGMONT Group of FIUs is holding its 29th plenary meeting in Abu Dhabi. It’s a decision that is not being met with plaudits everywhere.
National Financial Intelligence Units (FIUs) are the engine room of the fight against financial crime – assessing intelligence from banks and others and filtering it to police agencies to stop the flow of illicit assets. In some cases the FIUs do the investigations themselves. Either way they are one of the most critical components of detecting and investigating financial crime and corruption.
In effect, the FIUs are the beating heart of any fincrime effort. How robust a country’s battle against financial and economic crime will depend on the strength and capacity of its FIU.
Of course, in many cases the work of FIUs goes unacknowledged and unfortunately in many cases the units are under-staffed and often starved of proper resources.
For that very reason, the work of the Egmont Group is critical. It provides support and peer review and is a vital cog in international co-operation. The plenary opportunity is the ideal place for FIU staffs to meet, swap ideas and of course network – leading to greater co-operation. At AML Intelligence we are big supporters of the Egmont Group.
Russia
Is going to the UAE right now to hold the group’s plenary the wisest decision?
First of all the UAE is on the FATF ‘grey list,’ which on the face of it shows Abu Dhabi is hardly a role model for national FIUs.
Moreover, the UAE is now the well known clearing house for Russian dirty money and in many cases its conversion to gold. The city’s swankiest real estate has been snapped up by the oligarchs who have found safe haven there.
Earlier this month, the Sunday Times newspaper in the UK reported that influential figures in the country were protecting the Kinahan Organised Crime Cartel despite the international drug trafficking gang being on the Wanted List of several countries and the subject of US sanctions with $5M bounties on the heads of the gang leaders.
At the ‘European Anti-Financial Crime Summit 2023’ in Dublin last month, one of the world’s top investigative journalists described the UAE’s financial hub, Dubai as “the new Panama” – ie the nerve centre of shady deals.
Earlier this month, a Reuters and International Consortium of Investigative Journalists investigation said the UAE is a major destination for sex trafficking, where African women are forced into prostitution by illicit networks operating within the country. Emirati authorities do little to protect these women and law enforcement was turning a blind eye to the issue, according to anti-trafficking activists, Nigerian authorities and interviews with trafficked women.
Intelligence chiefs across the world see the Middle East’s financial capital as providing a safe place of work for many international gangsters – albeit local enforcement has stepped up operations and more recently been publicising a crackdown on financial crime.
All of which leads one to question the wisdom of the Egmont Group heading to the July sun of Abu Dhabi.
Sure, the theme of the plenary is very important – “Use of Advanced IT Technologies by FIUs to Enhance Their Operations.” It will be featured in discussions throughout the week and is the topic for the plenary’s final Heads of FIU Thematic Discussion. Also, during the event, four working groups and eight regional groups will meet to continue advancing the organisation’s goals, and the 2023 Best Egmont Case Award (BECA) will be presented to an FIU “that demonstrated exceptional, engaging, and educative casework.”
We wish the organisers and delegates fruitful discussions.
And there is also the argument that the various international FIUs representing 166 member countries and organisations can help give the UAE good advice on best practices.
On the other hand, there is also the very real threat of Russian elements and other international criminal elements based in Dubai and other parts of the country trying to place kompromat or influence.
The AML Intelligence Leader Writer team has not spent any time in Abu Dhabi – if you exclude the impressive airport – but we are well aware of its reputation as a great conference city. The smart hotels, the year-round sun and the amazing events halls are big draws for event organisers and delegates alike.
Moreover, we’ve no doubt that the UAE authorities, with their great reputation for warm Arab hospitality, will make super hosts. Further, we appreciate that the decision to go to the Middle East’s financial hub may have been made some time ago and of course it is far too late now, even if the group wanted, to change plans.
Yet we find it hard to shake off the view that agreeing to allow the city host the Egmont Group at this moment in time – with the backdrop of the Ukraine war and the points raised above, including the UAE’s inclusion on the FATF grey list – may not be the body’s finest moment.
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