India’s intelligence agencies are keeping a close eye on trade with the UAE, with a particular focus on transactions involving the emirates’ free ports.

A surge in trade between the two economies has caused concerns that some of the apparent increase could be put down to increased levels of trade-based money laundering.

Close watch
Certain goods are reportedly under close watch, and India’s business leaders have been told there has been some amount of checking to identify whether or not transactions are genuine.

“We have been given to understand that 50 per cent of all consignments exported to free ports like Dubai are physically examined,” according to director general of the Federation of Indian Export Organisations, Ajay Sahai.

But the director general is calling for more stringent checks, commenting that under the current levels of checking, “any mischief cannot go undetected for a long time.”

Striking a balance
Sahai does however concede that a balance needs to be struck so that genuine transactions are not delayed or penalised.

“Each day delay at the ports add to about 0.5% of Free on Board (FOB) value of exports,” he said.

Categories: Trade Based Financial crimes News