India, UAE to sign pact to counter terror funding ›

This MOU is significant as money laundering and financial crimes related to it have a bearing on national security. NAVDEEP SURI, ambassador to UAE

NEW DELHI : A pact to exchange information on money laundering and financing terrorist activities between India and the United Arab Emirates (UAE) is ready for signing this month, officials familiar with the development said, adding that the two countries would also roll out the currency swap deal soon.

The Memorandum of Understanding (MOU) on Cooperation in the Exchange of Financial Intelligence related to Money Laundering, Associated Predicate Offences and Terrorist Financing, was concluded during the visit of Prime Minister Narendra Modi to the UAE on February 10 and 11.

“This MOU is a significant development because the money laundering and related financial crimes have a bearing on national security. This pact would go a long way in addressing our concerns on the issue of terrorist financing. Terrorism is an issue of mutual concern for both countries,” Navdeep Suri, India’s ambassador to UAE, said.

Money laundered through Gulf nations that aid subversive activities in India remains a concern for New Delhi. The proposed pact, for which finance ministry is the nodal ministry in India, is expected to strengthen the cooperation between India and the UAE in fighting transnational crimes.

“The pact is yet another ideal template in the growing convergence between the two countries (as part) of security cooperation in diverse areas such as de-radicalisation to drug trafficking,” an Indian official said.

The currency swap agreement between the two sides is also set for a roll-out soon. This involves the exchange of interest and sometimes of principal in one currency for the same in another currency.

Suri said taking the energy cooperation to a new high was perhaps the most significant outcome of Modi’s second visit to the UAE. India and the UAE had signed an MOU between the Reserve Bank of India (RBI) and Central Bank of the UAE in 2016 on bilateral swapping of Indian Rupee with Dirham.

“It is a very important development that Prime Minister’s visit led to India getting its first oil concession in the Gulf.”

Explaining the deal, Suri said this translates into roughly 2.2 million tonnes of crude per year for the next 40 years. He said two sides also worked out the final details of the strategic petroleum reserve agreement.