US reminds #UAE of vigilance to combat Russian sanctions evasion | Financial Times

US reminds UAE of vigilance to combat Russian sanctions evasion | Financial Times

The US has called on financial institutions in the United Arab Emirates to remain vigilant in combating Russian sanctions evasion as western states fret that their Gulf ally, and others such as Turkey, could emerge as havens for illicit cash linked to the Kremlin. 

Wally Adeyemo, deputy treasury secretary, welcomed UAE institutions’ commitment to preventing money laundering, but said the Gulf state — like other global financial hubs — faces the “threat of illicit financial flows”. He underscored the need “for vigilance and proactive action” in combating Russian sanctions evasion, including in the UAE. 

“We know that Russian banks have employed deceptive payment practices and used shell companies and other means to hide the true nature of their transactions,” according to a copy of his prepared address to a UAE banking roundtable released on Wednesday. 

“Financial institutions must be exceedingly cautious in handling any Russia-related businesses and in managing the risks associated with financial institutions that have exposure to the Russian financial system,” he added.