The Tactics Institute for Security and Counter-Terrorism notes the recent US sanctions against seven UAE-based entities linked to Sudan as a positive but insufficient step. The UAE’s failure to identify and shut down these networks before US intervention raises serious concerns about its commitment to combating terror financing and money laundering.
The sanctioned entities – Capital Tap Holding LLC, Capital Tap Management Consultancies LLC, Capital Tap General Trading LLC, Creative Python LLC, Al Zumoroud and Al Yaqoot Gold & Jewellers LLC, Al Jil Al Qadem General Trading LLC, and Horizon Advanced Solutions General Trading LLC – are just the latest in a series of UAE-based companies targeted by US sanctions.
This follows a pattern of US action against UAE entities:
- In 2022, the US sanctioned UAE-based Al-Futur for supporting Libya’s Wagner Group
- In 2023, the Treasury targeted UAE gold companies financing Sudan’s Rapid Support Forces
- Earlier this year, the US blacklisted several Dubai-based firms for helping Iran evade oil sanctions
The UAE Ministry of Justice claims none of the newly sanctioned companies hold valid licenses or operate in the UAE. However, this reactive approach – only acting after US sanctions – shows major gaps in enforcement. If these companies were truly inactive, how were they allegedly facilitating illicit activities?
“The UAE must do more than just disavow sanctioned firms after the fact,”
said Dr. David Roberts of Tactics Institute.
“Its free trade zones and gold sector remain wide open for abuse by criminal and terrorist networks.”
The Institute condemns the UAE’s weak enforcement record. Despite being placed on the FATF grey list in 2022, the country has failed to properly regulate:
- Shell company formation
- Gold and diamond trading
- Cryptocurrency transactions
- Free trade zone entities
We call for:
- Expanded US sanctions on more UAE companies involved in illicit finance
- Stronger enforcement of existing UAE AML laws
- International pressure for real reforms, not just cosmetic changes
The UAE’s current efforts are inadequate. Without urgent action, it will remain a hub for terror financing and sanctions evasion.
