ABSTRACT
In 2020, the UAE central bank signed an agreement with the Dubai multi-commodities centre requiring that free zone to share information on any financial transaction suspected of having links to money laundering for the possible purpose of terrorist financing. The agreement requires that a compliance officer will operate within the free zone and monitor financial transactions. However, in some cases, free zones are deemed to be an extension of the port and may have nominal controls between the port and the free zone depending upon the level of security deemed necessary in the specific location. Customs and tax compliance are also major issues in free zone authorisations and operations. Part of the conditions of free zone operation is that the free zone authority and its tenants must be able to show that they can comply with customs and tax requirements at all times, generally by established import and export procedures and documentation.
