Urging the United Arab Emirates to immediately end any activities enabling money laundering in violation of United States sanctions against Iran.

Bill: 116-hres-671
Sponsor: full_name: Rep. Cleaver, Emanuel [D-MO-5]
Introduced: 2019-10-31
Policy area: International Affairs
Subjects: Criminal investigation, prosecution, interrogation

Foreign and international corporations

Fraud offenses and financial crimes

Iran

Middle East

Sanctions

Trade restrictions

United Arab Emirates
Latest action: action_date: 2019-10-31
text: Referred to the House Committee on Foreign Affairs.

Summaries:
action_date: 2019-10-31
action_desc: Introduced in House
text: <p>This resolution condemns the failure of the United Arab Emirates (UAE) to counter money-laundering activities conducted to bypass U.S. sanctions on Iran and urges the UAE to resolve the shortcomings in its laws against money laundering. </p>

tv_txt: IV 116th CONGRESS 1st Session H. RES. 671 IN THE HOUSE OF REPRESENTATIVES October 31, 2019 Mr. Cleaver submitted the following resolution; which was referred to the Committee on Foreign Affairs RESOLUTION Urging the United Arab Emirates to immediately end any activities enabling money laundering in violation of United States sanctions against Iran.

Whereas the United Arab Emirates (UAE) has undertaken efforts to coordinate with United States partners to counter money laundering and terrorist financing and has participated in regional bodies to counter money laundering such as the Middle East and North Africa Financial Action Task Force; Whereas recent efforts by the UAE to restrain illicit money transfers remain insufficient in addressing concerns about the evasion of United States sanctions and money laundering; Whereas the Department of State has highlighted the need for the UAE to continue increasing the resources devoted to investigating, prosecuting and disrupting money laundering , according to the Department’s Narcotics Control Strategy Report ; Whereas the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 11 entities and individuals involved in procurement on behalf of Iran’s ballistic missile program in 2016; Whereas, in 2016, OFAC sanctioned Mabrooka Trading Co LLC (Mabrooka Trading)—based in the UAE—and its China- and UAE-based network that have been involved in procuring goods for Iran’s ballistic missile program; Whereas OFAC targeted two Iranian regime-linked networks pursuant to Executive Order 13382 (2005) for engaging in covert procurement activities benefitting multiple Iranian military organizations in August 2019; Whereas the second network targeted by OFAC in August 2019 was led by Seyed Hossein Shariat and procured various aluminum alloy products on behalf of components entities owned or controlled by Iran’s Ministry of Defense and Armed Forces Logistics; and Whereas the UAE’s lax enforcement of its antiproliferation export control laws have facilitated these violations of United States sanctions policy: Now, therefore, be it

That the House of Representatives— (1) condemns the failure of the United Arab Emirates (UAE) to effectively counter money laundering activities conducted by Iranian companies to bypass United States sanctions on Iran; and (2) urges the UAE to resolve existing shortcomings in its antimoney laundering laws and regulations, as existing laws are not sufficient to deter the activities of rogue companies.