In recent years, courts across the Gulf have issued several convictions against individuals involved in money laundering, in cases that violate commaercial and investment laws and regulations.

One of the most high-profile cases involved the Fourth Criminal Court in Dubai, which recently convicted a prominent Indian businessman known as "B.S.S." or "Abu Sabah." He was sentenced to five years in prison for laundering money through a criminal gang. In addition to a fine of AED 500,000, the court ordered the confiscation of AED 150 million and ruled that he be deported after serving his sentence. Several others, including his son and 32 co-defendants, were also convicted.

The case was referred to the Public Prosecution on December 18, 2024, and the first court session was held on January 9, 2025. The verdict was delivered in under six months. The court also seized electronic devices and documents for further investigation, highlighting how the Gulf region has become increasingly vulnerable to money launderers who manipulate local economies.

Money laundering poses a serious challenge for any country, and in the Gulf, it raises concerns that some commercial activities are exploiting regulatory loopholes to conduct illicit operations.

GCC countries have strong banking systems, large financial flows, and substantial remittances—especially from expatriate workers—some of whom are unwittingly used in money laundering schemes. Nonetheless, anti-money laundering efforts in the region continue to identify and prosecute perpetrators.

According to both international and local reports, a wide range of crimes are associated with money laundering in the GCC. These include predicate offenses that generate illicit funds, which are then laundered. Examples include financial and economic crimes, banking fraud (such as stock manipulation and loan fraud), corruption, and bribery. These developments have intensified the need for regulatory authorities to enhance oversight and enforce international disclosure agreements.

The region also faces cases of embezzlement of both public and private funds, as well as cross-border crimes such as human trafficking, illegal labor practices, smuggling of prohibited goods (including weapons and contraband), cybercrime, online fraud, bank data theft, and terrorist financing—the most dangerous form of money laundering.

GCC countries are placing increasing emphasis on monitoring and controlling these issues, particularly in response to international expectations and Financial Action Task Force (FATF) requirements. Shell companies and luxury real estate investments are frequently used as fronts for laundering illicit funds.

Exchange houses and money transfer companies are also common conduits, with multiple bank accounts often employed to fragment transactions and avoid detection. In many cases, accounts are opened in the names of expatriates or shell entities to obscure the origins and destinations of funds.

This raises a final, critical question: how many expatriate traders and investors, operating in sectors such as food, retail, and services, are also running money transfer companies? Some exploit low-wage expatriate labour while channeling funds through both legitimate and illegitimate means. Shouldn’t the financial records of such operators be audited to determine the annual volume of remittances—and to identify any links to money laundering?

2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).