Money laundering: effectiveness of the corporate social responsibility (CSR) law in the UAE

Abstract

Purpose

The purpose of this paper is to examine the extent to which the corporate social responsibility (CSR) law will help combat money laundering in the United Arab Emirates (UAE).

Design/methodology/approach

The paper will first focus on examining whether money laundering and CSR are compatible. Such an analysis will then inform decisions on whether to include anti-money laundering in CSR disclosure requirements.

Findings

Key findings from the analysis have shown that the UAE CSR law does not explicitly mention money laundering as part of CSR disclosure requirements. Anti-money laundering (AML) and CSR are compatible and convergence, but money laundering is not yet an integral element of CSR disclosure requirements.

Originality/value

There are no clear mechanisms or provisions under the UAE CSR law on how money laundering can be included in CSR disclosure requirements, whether voluntary or mandatory. A pressing challenge now is whether the UAE should regulate AML/combatting the financing of terrorism disclosures under the CSR law. The main concern is that such a move could make mandatory disclosure another technical and regulatory requirement that UAE business must comply, which will be inimical to fostering a strong CSR culture.

Citation

Al-Tawil, T.N. (2024), "Money laundering: effectiveness of the corporate social responsibility (CSR) law in the UAE", Journal of Financial Crime, Vol. 31 No. 5, pp. 1126-1139. https://doi.org/10.1108/JFC-07-2023-0172