Regulators will report back to the UN within days whether any Libyan assets have been frozen within the UAE's financial system, a Central Bank official says.
Authorities around the world are taking action to freeze accounts and investments connected to the Libyan leader Muammar Qaddafi as pressure on his regime mounts. Banks are sending responses to the Central Bank about whether any names on the UN Security Council sanctions list hold assets with them, said Mohamed el Shirief, the suspicious transactions and reports analyst at the Central Bank.
His comment follows a circular from the regulator to lenders last week about the issue. The international community voted last month to freeze the foreign assets of Col Qaddafi and four aides in an attempt to stop attacks on Libyan protesters.
"We are receiving responses from banks and hopefully within a few hours or days we will send on to the UN," said Mr el Shirief. "If there any names on the UN list, they will be frozen.
"Usually, when we send a search and asset freeze circular to banks we hear back within a maximum of a week." Sweden's financial supervisory authority on Tuesday became the latest financial watchdog to act when it froze more than 10 billion krona (Dh5.82bn) of assets connected to Col Qaddafi and his government. Sultan al Suwaidi, the Central Bank Governor, has already stated the UAE's intention to comply with UN resolutions.
The bank has previously complied with international sanctions against Iran.
As a regional financial services centre, authorities in the UAE have been stepping up efforts in recent years to crack down on money laundering. More recently, regulators have been scrutinising any funds flowing from ousted regimes.
Transparency International, the global anti-corruption watchdog, is urging the UAE to investigate whether any assets exist within the country's financial system connected to Zine el Abidine Ben Ali and Hosni Mubarak, the former presidents of Tunisia and Egypt respectively. Both countries have expressed a desire to trace and freeze foreign funds held by the former leaders and their families.
