Three UAE clearing houses banned from EU amid AML blacklist concerns

[Martin Everson]

What next EU will start telling banks not to offer correspondence banking relationships to UAE banks 😉.


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25/07/2023

The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, has withdrawn as required by EMIR the recognition decisions of the following three central counterparties (“CCPs”) established in the United Arab Emirates (including the Dubai International Financial Centre):

• Dubai Commodities Clearing Corporation;
• Dubai Clear LLC;
• Nasdaq Dubai Ltd.

This withdrawal follows the addition of the United Arab Emirates, by the European Commission, to the list of high-risk third countries presenting strategic deficiencies in their national anti-money laundering and counter financing of terrorism (“AML/CFT”) regime, on 16 March 2023.

In order to minimise potential market disruption, ESMA has provided for an adaptation period of three months. The withdrawal of recognition decisions will therefore enter into effect on 25 October 2023. From that date, the three CCPs concerned will no longer be permitted to provide clearing services to clearing members or trading venues established in the EU.
ESMA has also updated its”¯list of recognised third-country central counterparties (TC CCPs).

Background​

In order for a third-country CCP (“TC-CCP”) to be recognised by ESMA, all cumulative conditions set out under Article 25(2) of EMIR must be met. Where any of those conditions is no longer met, ESMA must withdraw the recognition decision of that TC-CCP.
One of such conditions is that the TC-CCP is established or authorised in a third country that is not included in AML blacklist under AML Directive.

This above-mentioned recognition condition, while outside the scope of action of the CCPs concerned, is no longer fulfilled in respect of the three CCPs established in the United Arab Emirates (including the Dubai International Financial Centre).

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https://www.esma.europa.eu/press-ne...emirates-aml-blacklist-requires-esma-withdraw

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[jafo]

Martin Everson said:
What next EU will start telling banks not to offer correspondence banking relationships to UAE banks 😉.


----- quote start

25/07/2023

The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, has withdrawn as required by EMIR the recognition decisions of the following three central counterparties (“CCPs”) established in the United Arab Emirates (including the Dubai International Financial Centre):

• Dubai Commodities Clearing Corporation;
• Dubai Clear LLC;
• Nasdaq Dubai Ltd.

This withdrawal follows the addition of the United Arab Emirates, by the European Commission, to the list of high-risk third countries presenting strategic deficiencies in their national anti-money laundering and counter financing of terrorism (“AML/CFT”) regime, on 16 March 2023.

In order to minimise potential market disruption, ESMA has provided for an adaptation period of three months. The withdrawal of recognition decisions will therefore enter into effect on 25 October 2023. From that date, the three CCPs concerned will no longer be permitted to provide clearing services to clearing members or trading venues established in the EU.
ESMA has also updated its”¯list of recognised third-country central counterparties (TC CCPs).

Background​

In order for a third-country CCP (“TC-CCP”) to be recognised by ESMA, all cumulative conditions set out under Article 25(2) of EMIR must be met. Where any of those conditions is no longer met, ESMA must withdraw the recognition decision of that TC-CCP.
One of such conditions is that the TC-CCP is established or authorised in a third country that is not included in AML blacklist under AML Directive.

This above-mentioned recognition condition, while outside the scope of action of the CCPs concerned, is no longer fulfilled in respect of the three CCPs established in the United Arab Emirates (including the Dubai International Financial Centre).

----- quote end

https://www.esma.europa.eu/press-ne...emirates-aml-blacklist-requires-esma-withdraw
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The EU is really doing its utmost possible to become irrelevant, huh?
When will these parasites learn? 🙄