A UAE central bank circular sent last week directed banks to name foreign "politically exposed persons (PEPs)", banking sources told Reuters.
PEPs refers to foreign politicians, public officials and their families. "Logically, when banks have relationships with PEPs, the main concern is misuse of their country’s money in any form – money laundering, channelling, etc," a senior banker said., declining to be named due to confidentiality reasons. Banks are required to report the names of the PEPs to the central bank by August 24, he said.
Another senior banker, who has seen the circular, said the UAE is stepping up banking regulations in line with international standards. "Recent events in the region as well as beyond perhaps prompted the authorities here to implement tighter scrutiny of the banking sector," he said. Meanwhile, Dubai has appointed a chairman and members of the board for a support fund set up to manage the proceeds from its $ 20 billion government bond programme to aid state-linked firms.
Abdulrahman al-Saleh, the new director general of Dubai’s department of finance, has been appointed as chairman by the emirate’s ruler, Sheikh Mohammed bin Rashid al al-Maktoum, the department of finance said in a statement yesterday.
Abdulaziz al-Muhairi, managing director of the Investment Corporation of Dubai, was named deputy chairman.
The fund, which was set up in July, will provide loans and credit facilities on a commercial basis to government and government-related entities. The three appointed board members are: Mattar Mohammed al-Tayer, chairman of the board and executive director of the Road Transport Authority (RTA), Majid Saif al-Ghurair, chairman of Shuaa Capital and Mohammed Khalfan Belhoul, legal counsel, the statement said.
Marwan Iqbal Abedin will be the fund’s executive director responsible for managing its daily operations. The board will establish the fund’s operating policies and procedures, recommending to Dubai’s Supreme Fiscal Committee the criteria for assessing loan applications by government and government-related entities, and nominating the strategic projects to be financially supported.
It will also draw up financial, administrative and technical regulations, the statement said.
Dubai launched the second tranche of its government bond programme in July. The first $ 10 billion tranche was sold to the United Arab Emirates central bank.
The Gulf emirate said the proceeds from its bond scheme would underpin firms such as Dubai World’s Nakheel, developer of palm-shaped islands. The support fund will be accountable to Dubai’s Supreme Fiscal Committee, a government body set up in 2007 to oversee the emirate’s fiscal policies.
