Money mule: UAE Central Bank believes COVID-19 has increased the risk of money laundering

The Central Bank of the United Arab Emirates sees an increased risk of illicit capital flows
Merge from Coronavirus disease It said in a report published on Sunday that the pandemic includes money laundering and terrorist financing.

According to the report, during the coronavirus crisis last year, the use of unlicensed currency service providers for money laundering increased, and e-commerce was also used for money laundering.

“The widespread blockade has led to a substantial increase in e-commerce. Due to the limited ability to transfer funds and goods during the pandemic, illegal actors are using e-commerce as a money laundering tool,” it said.

The so-called “Money mule“-The person who received it Illegal funds The bank said that holding or withdrawing money in their bank accounts and wire transfers elsewhere, charging service commissions-the bank said that accounts belong to low-income individuals from Africa and Asia in most cases.

The bank identified the risk of fraud related to the pandemic, such as companies or individuals submitting false statements to qualify for government stimulus support measures.

“As we continue to monitor and learn more about the spread of COVID-19 in our community, we have recently observed an increase in the threat of external fraud, especially when cybercriminals use traditional and digital channels to carry out large-scale cyber fraud attacks remotely. In an environment of development,” the bank also said.

The report comes as the central bank is stepping up efforts to crack down on illicit capital flows.

Financial Action Task Force UAE It is on the “grey list” of countries that strengthen monitoring.