01 Jul 2009, David Benyon, Operational Risk & Regulation
DUBAI - Four individuals charged with laundering £150 million in an alleged tax scam have pleaded not guilty in a Dubai court. The four suspects - a Briton, an Indian, a Pakistani and an Emirati, along with six companies, are accused of laundering funds through bank accounts in the United Arab Emirates (UAE), the UK and the Netherlands.
They are accused of exporting goods from the UK to other countries in Europe using bogus sales contracts to falsely inflate their value. The same goods were then imported back to the UK and tax was reclaimed from HM Revenue & Customs.
A two-year investigation carried out by Dubai Public Prosecution found that the accused regularly changed the name of their export companies as well as their commercial activities to fool authorities. They also are accused of submitting false documents to the UAE Central Bank to justify 18 million dirhams ($4.9 million) found in one of the companies' accounts.
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