The UAE insurance sector is safe from money-laundering and does not have any dubious funds used to finance terrorist or criminal activities, the country's Insurance Authority (IA) has said.

While issuing new instructions and measures to deal with money-laundering crimes in insurance activities, Sultan bin Saeed Al Mansouri, Minister of Economy and Board Chairman of the government's National Insurance Authority, said the move was in line with a series of measures taken by the authority since its inception in late 2007 to bring the sector on par with international standards and specifications.

He said the ministry is keen to enable national insurance companies implement latest concepts in the insurance sector to boost their competitiveness.

Fatima Mohammed Ishaq Al Awadhi, Deputy Director-General of the authority, said the instructions reflect the authority's desire to co-operate and co-ordinate with the monetary authorities to ensure safety of the financial system in the country.

"There are no insurance companies in the country exposed to funds from illegal sources, which are used to finance terrorist or criminal activities," she told Emirates Business yesterday.

"The decision recently taken by the minister of economy and IA's chairman regarding measures to combat money laundering and terrorism finance in insurance activities in the country is just an organisational decision, which was added to a series of decisions that provide a legal and organisational framework to the IA's activities," she said.

Al Awadhi said Article 1 defines money laundering as an offence in which offenders conceal and change the source of money gained in illegal ways to make them legal. This illegal money includes money used in financing terrorism or criminal activities.

The UAE Central Bank has issued a detailed circular No 24 of the year 2000, and its amendments, in this respect.

Al Awadhi said the instructions and measures specified would be applicable to all insurance companies, including foreign ones operating in the UAE. (Wam & Abdel Hai Mohamed)

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