Banks have right to quiz clients on source of money

There are no restrictions on transactions involving large amounts or on execution of investment operations in UAE banks, as long as the source of money and the direction of money flow are legitimate, said Obaid Al Tayer, Minister of State for Financial Affairs, during the meeting of the Federal National Council yesterday.

Answering a question by council member Mohammed Abdullah Al Zaabi on the likelihood of criminal minds exploiting the UAE's open market system, Al Tayer said the country has a number of laws and regulations in place to protect the financial system and to prevent exploitation, money laundering or financing of terrorist groups.

Financial institutions have the responsibility of monitoring any suspicious transaction and notifying the Central Bank, he said.

"Regardless of the amount [of transaction], should a bank become suspicious, the Central Bank should be notified, the account would be monitored and checked by the bank," he added. In case the bank has a suspicion and is unsure about the source and direction of money flow, the Central Bank would direct the bank to question the client and ask for relevant documents.

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