- A rich country has a low rate of fraud
- But foreign businesses can circumvent sanctions through crypto
The International Group Against Money Laundering (FATF) has released a report on Qatar. They praised the efforts of the authorities on AML. But called for improvements to the system, which hasn’t been upgraded since 2019.
Cyber detectives call attention to low detection rates of capital laundering crimes:
“The number of money laundering investigations and prosecutions remains low, and authorities should continue to improve their investigations to determine the role Qatar may play in sophisticated or professional schemes.”
In December 2019, Qatar’s main financial regulator QFCRA announced it would ban any services with virtual assets. Violations of this law carry fines and even criminal liability.
But in practice the rules do not always work. Rumors are leaking out in the media that Qatar is being used by businesses to launder capital because of poor oversight. Including Russian oligarchs.
According to the FATF report, Qatar needs to improve its financial monitoring system.
“The authorities still lack the controls to ensure that all information collected remains accurate and up to date.”
It is interesting that the Qatar Central Bank does not rule out the possibility of launching CBDC. Now they are evaluating the pros and cons of such assets. And they also develop the right technology and platform.