Islamic Banking and Anti-Money Laundering In United Arab Emirates: Legal

By

[Candidate's Name]

[Department or School Name]

Updated Proposal

Submitted To

TABLE OF CONTENTS

INTRODUCTION1

Research Questions1

Research Aims and Objectives1

Rationale of the study2

Methodology2

Time Frame to Completion3

Organization of the Study4

GENERAL OVERVIEW OF ISLAMIC BANKING AND ML5

Money Laundering5

Money Laundering in Banks5

Islamic Banking6

REVIEW OF AML LEGISLATION IN UNITED ARAB EMIRATES7

AML Operations7

Compliance Risk7

AML Compliance in UAE8

INTERNATIONAL TRENDS IN AML LEGISLATION9

U.S. Rules and Statues9

International Regulation Development10

BIBLIOGRAPHY12

INTRODUCTION

Many people would be shocked and disturbed to discover that the institutions with which they trust their wealth are unwittingly doing business with banks involved in money laundering or the financing of terrorism, or even caught up in such activities themselves. Over the past several decades there has been a concerted effort, led by the countries worldwide, to limit the prevalence of money laundering and terrorist financing by exhorting states around the world to adopt robust controls to counter such activities. The objective of this paper is to reveal the extent to which Islamic banks are complying with the Anti-Money Laundering (AML) policies formulated by the FATF and how these banks are handling the AML compliance risks. To accomplish these objectives, the author will do a primary research on Dubai Islamic Bank to obtain data about their AML compliance operation, AMP compliance policies, the potential compliance risks they face and measures taken by them to handle these risks.

Research Questions

The study will answer the following research questions:

What are the AML compliance policies of Dubai Islamic Bank?

What are the AML operations of Dubai Islamic Bank?

How AML operations are being treated in light of an Islamic banking practice?

What are the potential AML Compliance risks that can be faced by Dubai Islamic Banks and all the Islamic Banks in general?

How Dubai Islamic Bank handles AML Compliance risks?

Research Aims and Objectives

To highlight the AML Compliance policy of Dubai Islamic Bank

To identify the potential AML Compliance risks that are faced by Islamic Banks

To identify the measures taken by Dubai Islamic bank to comply with the AML policies

To analyze how Dubai Islamic Bank handles AML Compliance risks

To examine how the operations of an Islamic bank affect its AML handling

Rationale of the study

This study will analyze the AML compliance policies and how many banks comply with these laws. Money laundering is a criminal activity and it has been practiced not only in conventional banks but in Islamic banks as well. This study aims to find out how AML Compliance risks are handled in Islamic Banking by analyzing the case of Dubai Islamic Bank (DIB).

Methodology

The approach used for this research would be mixed methodology. First, the qualitative data will be collected and analyzed. The qualitative data obtained will help in developing a questionnaire. This questionnaire will be distributed in various Islamic Banks to identify the AML compliance risks in Islamic Banking. The research will also use a case study strategy and will involve collection of both primary and secondary data. Secondary data would be collected from books, journals and quality websites; whereas, primary data will be collected via interviews and survey.

Research Design

This research approached data gathering ...