The UAE has signed a co-operation treaty with the UK in an effort to help stamp-out carousel fraud operating in the United Kingdom and Dubai.
John Reid, Home Secretary, and UAE Minister of Justice Mohammed Nakhira Al Dhaheri signed two bilateral Treaties on Extradition and on Mutual Legal Assistance.
The treaties ensure both UK and UAE officials co-operate when tracking shipments between countries that are suspected of being part of carousel fraud. It also allows the HMRC to extradite suspects from the UAE.
Dubai's increasing reputation as a centre for re-export makes it the perfect place to operate VAT fraud, and it is believed 90% of revenue generated from carousel fraud is laundered through banks in Dubai.
Reid said, "The Treaties will make a real contribution to reducing the harm caused to both our countries by such individuals. They will thereby help to safeguard the integrity of the very significant, and rapidly expanding, business, financial, investment and personal links between our two countries."
"Would-be criminals and terrorists are going to find it harder to exploit the links between our two countries for their own ends," he stressed.
The treaties ensure both UK and UAE officials co-operate when tracking shipments between countries that are suspected of being part of carousel fraud. It also allows the HMRC to extradite suspects from the UAE.
Dubai's increasing reputation as a centre for re-export makes it the perfect place to operate VAT fraud, and it is believed 90% of revenue generated from carousel fraud is laundered through banks in Dubai.
Reid said, "The Treaties will make a real contribution to reducing the harm caused to both our countries by such individuals. They will thereby help to safeguard the integrity of the very significant, and rapidly expanding, business, financial, investment and personal links between our two countries."
"Would-be criminals and terrorists are going to find it harder to exploit the links between our two countries for their own ends," he stressed.