IDEAS home Printed from https://ideas.repec.org/a/bpj/lawdev/v13y2020i2p473-497n1.html
   My bibliography  Save this article

Anti-Money Laundering Regulation and Practice of Islamic Banks in the United Arab Emirates: A Case Study

Author

Listed:
  • Kumar Ajay

    (Department of Law, University of Dubai, Dubai, United Arab Emirates)

Abstract

Banks are key institutions in the economic development of a country, but they are prone to money laundering (ML) as well. Such incidents could lead to sanctions and loss of reputation. To mitigate such risks, banks are required to follow Anti-Money Laundering (AML) regulations. Presently, there are no separate or specific AML regulatory requirements for Islamic banks (IBs). Apart from regulations, understanding practices also help explicate compliance to laws (spirit), by those who apply it. Since the AML practices of IBs have not been systematically analysed, we look at their practices (the United Arab Emirates) to understand whether they have adopted specific AML processes. Owing to the lack of literature on such practices, a survey was carried out using a standard questionnaire. The questionnaire was supplied to the AML/compliance departments, and the results are based on a sample size of three banks. The survey results show that the IBs adopt Know Your Customer (KYC) and Customer Due Diligence (CDD) to check laundering. Crucially, questions pertaining to the AML risk arising from the potential vested interest/s (theoretical) that the IBs themselves are likely to have in the venture remain unanswered.

Suggested Citation

  • Kumar Ajay, 2020. "Anti-Money Laundering Regulation and Practice of Islamic Banks in the United Arab Emirates: A Case Study," The Law and Development Review, De Gruyter, vol. 13(2), pages 473-497, June.
    • Handle: RePEc:bpj:lawdev:v:13:y:2020:i:2:p:473-497:n:1
    DOI: 10.1515/ldr-2020-0048
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/ldr-2020-0048
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/ldr-2020-0048?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:lawdev:v:13:y:2020:i:2:p:473-497:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.