Qatar’s Expanded Definition of Money Laundering: A New Approach in Combating Financial Crimes
Introduction
In the Gulf region, Qatar has taken noteworthy steps to combat money laundering and terrorist financing. The Qatari authorities have recently updated their anti-money laundering laws with the new Anti-Money Laundering and Terrorist Financing Act No. (20) of 2019 (AML/CFT Act). This legislation offers an expanded definition of money laundering, which sets it apart from other legal frameworks in the region.
Significant Updates to Qatari AML/CFT Act
The Qatari lawmaker, Sami Hamdan AL-Rawashdeh, has broadened the definition of money laundering to include a range of acts aimed at concealing the illegal origins of funds. This new definition is a significant departure from earlier versions of the AML/CFT legislation.
New Definition of Money Laundering
The new definition of money laundering under the Qatari AML/CFT Act includes the following elements:
- Concealing illegal origins of funds: Money laundering involves actions intended to disguise the fact that funds originate from illicit sources.
- Awareness of illicit origins: The person perpetrating the money laundering must be aware that the money being laundered comes from criminal activities.
- Felony or misdemeanor as predicate offense: Any felony or misdemeanor punishable under Qatari law may serve as the predicate offense.
Proving the Illicit Source of Funds
The legislation does not require a conviction of the predicate offense to prove the illegal origin of the funds. Instead, it necessitates proving that the money being laundered is indeed the proceeds of a crime. Although the new law does not explicitly require a conviction, it does require the double criminality principle when the predicate offense has been committed abroad.
Broadening the Scope of Predicate Offenses
Another significant change in the new act is the approach to identifying predicate offenses. Unlike the previous law, which restricted the predicate offenses list to a few specific crimes, the new law takes a more inclusive approach, allowing any felony or misdemeanor under Qatari law to serve as the source of laundered funds.
Conclusion
The expansive definition of money laundering under the new Qatari Anti-Money Laundering and Terrorist Financing Act is expected to strengthen Qatar’s stance against financial crimes and bring it in line with international best practices.
About the Author
Sami Hamdan AL-Rawashdeh is a legal researcher and scholar at Qatar University, with a focus on the legal and regulatory aspects of financial crimes. In this article, he sheds light on the significant updates to the Qatari Anti-Money Laundering and Terrorist Financing Act No. (20) of 2019 and the implications of the expanded definition of money laundering on Qatari law.