UAE denies ‘false’ reports of fund transfer to Iran
Dubai, United Arab Emirates – November 2, 2014: Aerial view of Dubai coastline and Burj Al Arab hotel in front of the coastline. The skyline of downtown Dubai, including the Burj Khalifa, can be seen in the background.
Franck reporter | Istock Unpublished | Getty Images
The United Arab Emirates said on Saturday that media reports that it had agreed to release billions of dollars of frozen funds to Iran were false.
“The State Department confirmed that these allegations are completely false and unfounded, emphasizing that the frozen Iranian funds were not released, transferred or facilitated through the UAE,” the government said in a statement to CNBC. he said.
Reuters had previously quoted four unnamed sources as saying the UAE had agreed to unlock the funds in a tactical shift following hundreds of attacks on Emirati military targets and infrastructure since the US-led war began on February 28.
But last week, the UAE was spared from Iran’s missiles, while Kuwait and Bahrain were hit.
Reuters quoted two regional sources as saying the UAE has agreed to release a total of $10 billion, of which more than $3 billion has already been delivered.
The news agency quoted two other sources with knowledge of the arrangement as saying the total funding was $20 billion, adding that the move was agreed to in exchange for stopping Iran’s attacks on the UAE.
One of the sources with knowledge of the deal was quoted as saying that the first tranche of $ 3 billion has already been made available.
Reuters was unable to determine whether the funds allocated for the transfers belonged to the UAE or originated from long-blocked Iranian accounts in the UAE banking system or elsewhere.
Dubai one critical financial corridor For Iranian businesses and individuals looking to bypass Western sanctions, sell oil abroad and channel revenues into military programs and regional proxies, according to the US-based Atlantic Council think tank.
Shell companies registered in Dubai’s sprawling free zones have concealed the origin of Iranian oil and commodities for years. Informal exchange offices also moved funds beyond the reach of traditional banking supervision.
America is pressuring the Gulf country to dismantle these networks. US Treasury imposes sanctions on UAE-based entities In recent years, officials reiterate that sanctions in the UAE have increased The country fell short of its stated commitments.
– CNBC’s Emma Graham and Reuters contributed to this story.
