Oligarchs Put #Dubai in Spotlight as World Sanctions #Russia Over Ukraine War - Bloomberg

Oligarchs Put Dubai in Spotlight as World Sanctions Russia Over Ukraine War - Bloomberg

The Gupta brothers stand accused of pillaging billions of dollars from South Africa. Isabel dos Santos is sought by Angolan authorities on suspicion of embezzling state funds. Bulgarian prosecutors say gambling tycoon Vasil Bozhkov is the leader of an organized crime group.

All of them are wanted at home to face allegations they deny, and all have something else in common: In recent years, they found sanctuary in Dubai, a destination for some of the world’s wealthiest exiles.

The Gulf emirate catapulted itself from sleepy trade backwater to glitzy playground for the rich over the past 40 years. But Dubai’s status as a global financial hub also has a darker side, and one that is coming under increasing scrutiny just as international allies sanction some Russian assets after the invasion of Ukraine.

While the United Arab Emirates has long been an investment destination for wealthy Russians, it’s now more appealing because it’s one of the countries that’s maintaining relations with their country. The flow of Russian money into the UAE through cash transfers and crypto wallets picked up as tension between Russia and Ukraine escalated, people with direct knowledge of the matter said. That has accelerated over the past two weeks, according to the people, who asked not to be identified discussing private transactions.

That comes as the UAE is under pressure to do more about tracking the money that enters the country. The Financial Action Task Force, a Paris-based organization set up by the G7 countries to combat money laundering, on March 4 put the UAE on its “gray list” of jurisdictions that don’t do enough to uncover illicit funds. The FATF warned two years ago it may take action, yet the decision resonates even more now.