The UAE is considering freezing billions of dollars in Iranian assets and cracking down on Tehran’s financial networks, according to The Wall Street Journal.
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The United Arab Emirates is considering freezing billions of dollars in Iranian assets held in the Gulf state, a move that could sever one of Tehran’s key economic lifelines, according to a report on Thursday by The Wall Street Journal.
People familiar with the discussions told the newspaper that Emirati officials are weighing whether to take the step as Iran’s economy faces pressure from inflation and an ongoing military conflict.
If the UAE proceeds with the move, it would significantly restrict Iran’s access to foreign currency and global trade networks, the report said.
According to The Wall Street Journal, Emirati officials have privately warned Iran about the possible action after Tehran launched more than 1,000 drones and missiles at targets in the UAE. It remains unclear when or whether the Emirati government will decide to act.
The UAE Foreign Ministry did not respond to a request for comment.
The UAE has previously stated that it adheres to sanctions and is committed to protecting the integrity of the global financial system.
Officials familiar with the discussions said Emirati authorities are considering several measures to dismantle Iranian financial networks operating in the country. These include freezing assets belonging to shell companies used to conceal trade activity and imposing a broader crackdown on currency exchange houses that move funds outside formal banking channels.
Accounts connected to the Islamic Revolutionary Guard Corps could also be targeted, the officials said. The group is responsible for defending and maintaining the Iranian regime.
The report comes after Iranian drone and missile attacks have caused damage in the UAE, including at a Dubai airport and residential and tourist areas near the Burj Al Arab hotel and the Palm Jumeirah.
According to the Treasury and analysts cited by The Wall Street Journal, Iran has established front companies in the UAE to receive payments for oil, conduct trade and obscure the origin of funds.
Iran has also relied on a “shadow fleet” of aging oil tankers that transport sanctioned crude while attempting to conceal their ownership and location. Many of these vessels are owned or managed by companies based in the UAE and Asia, according to the Treasury.
Content retrieved from: https://www.israelnationalnews.com/news/423455.
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