UAE residents restricted from doing EUR payments - new law?

[JJReddick]

I just transferred some money from from an account in my name in a EU bank (in EUR) to an account under my name in a Swiss Bank. It was bounced, apparently for regulatory reasons.
Swiss bank will look into it and let me know next week as the customer service lad had no idea.
He did mention tho a new regulation coming through two weeks ago where UAE residents were blacklisted from doing EUR payments.

Is that true?

Maybe allowing all those Russian to move and bank in Dubai while Putin is waging a war to Europe wasnt the greatest move

 

[Larin]

Might have something to do with the EU placing UAE in the money laundering black list. Would be interesting to know if such a regulation is indeed in place.

 

[jafo]

Maybe allowing all those Russian to move and bank in Dubai while Putin is waging a war to Europe wasnt the greatest move

Call me crazy/paranoid, but I have a feeling if these "Russians" moved to Brussels and paid +50% of their fortunes to taxes, the EU would be happy to cuddle and protect them.

 

[JJReddick]

Call me crazy/paranoid, but I have a feeling if these "Russians" moved to Brussels and paid +50% of their fortunes to taxes, the EU would be happy to cuddle and protect them.

they wouldnt be allowed to have access to banking and would have had huge issues with moving funds / buying real estate. Only country that has allowed them in any significant form is Portugal, but they closed the program now. I think some are missing the point that effectively Russia has waged a war to Europe and it's not going away anytime soon. Dubai should have taken a firmer approach (I hear nowdays banking for Russian nationals in UAE is getting increasigly difficult but too ittle too late) and should have bounced them back to Siberia while keeping relationship good with Europe and US banking and regulatory channels. Very short sighted chasing those few millions of Russians with a NW high enough to move to Dubai while comprimising the relationship with the two largest financial and trade markets of the world. Pretty sure not everything is doomed but if a swiss bank is bouncing a transfer from another account in my name coming from a EU bank, while me being fully registered, fully AML compliant, long term resident of the UAE, I can only imagine whats going on for more dodgy actors who are actually using Dubai for tax avoidance while spending 6+ months elsewhere.

 

[jafo]

they wouldnt be allowed to have access to banking and would have had huge issues with moving funds / buying real estate. Only country that has allowed them in any significant form is Portugal, but they closed the program now. I think some are missing the point that effectively Russia has waged a war to Europe and it's not going away anytime soon. Dubai should have taken a firmer approach (I hear nowdays banking for Russian nationals in UAE is getting increasigly difficult but too ittle too late) and should have bounced them back to Siberia while keeping relationship good with Europe and US banking and regulatory channels. Very short sighted chasing those few millions of Russians with a NW high enough to move to Dubai while comprimising the relationship with the two largest financial and trade markets of the world. Pretty sure not everything is doomed but if a swiss bank is bouncing a transfer from another account in my name coming from a EU bank, while me being fully registered, fully AML compliant, long term resident of the UAE, I can only imagine whats going on for more dodgy actors who are actually using Dubai for tax avoidance while spending 6+ months elsewhere.

Interesting perspective...

 

[Dandyline]

I just transferred some money from from an account in my name in a EU bank (in EUR) to an account under my name in a Swiss Bank. It was bounced, apparently for regulatory reasons.
Swiss bank will look into it and let me know next week as the customer service lad had no idea.
He did mention tho a new regulation coming through two weeks ago where UAE residents were blacklisted from doing EUR payments.

Is that true?

Maybe allowing all those Russian to move and bank in Dubai while Putin is waging a war to Europe wasnt the greatest move

Sounds strange. Anyway, always good to have an extra EU residency in Cyprus for the EU accounts and businesses.

 

[algotrader]

Sounds strange. Anyway, always good to have an extra EU residency in Cyprus for the EU accounts and businesses.

Yeah, and when you finally realize the cost for these setups in multiple countries (company formation, economic substance, lawyers, accountants, residence permits, bank accounts, insurance, travel, rent, utility, phone, transportation, etc) you might just as well have remained in your high tax home country instead of having all that hassle for nothing. Plus, it consumes a lot of your time that you could have spent focusing on your business increasing your revenue instead of dealing with bureaucracy and red tape. And then, when you have a setup that works just fine for you, they will introduce another regulation, another tax or another AML directive, or put your offshore country on a grey/black list.

 

[Konstanz]

Yeah, and when you finally realize the cost for these setups in multiple countries (company formation, economic substance, lawyers, accountants, residence permits, bank accounts, insurance, travel, rent, utility, phone, transportation, etc) you might just as well have remained in your high tax home country instead of having all that hassle for nothing. Plus, it consumes a lot of your time that you could have spent focusing on your business increasing your revenue instead of dealing with bureaucracy and red tape. And then, when you have a setup that works just fine for you, they will introduce another regulation, another tax or another AML directive, or put your offshore country on a grey/black list.

It just depends what business you do and how much you earn.
If you are in gambling business , crypto business etc. you will have even more paperwork in your home country to prove everything. It's not like you pay and you are left alone. You get investigations/tax audits. So you start to think it's better just move to Dubai and forget declarations/investigations/tax audits..
I better spend my money on restaurants and bars rather than pay to government and sit all day explaining each transactions.

I just transferred some money from from an account in my name in a EU bank (in EUR) to an account under my name in a Swiss Bank. It was bounced, apparently for regulatory reasons.
Swiss bank will look into it and let me know next week as the customer service lad had no idea.
He did mention tho a new regulation coming through two weeks ago where UAE residents were blacklisted from doing EUR payments.

Is that true?

Maybe allowing all those Russian to move and bank in Dubai while Putin is waging a war to Europe wasnt the greatest move

Back to topic. I think it's all about UAE blacklisting in EU AML blacklist.
So, banks indicate you as high risk person

 

[TheCryptoAnt]

I better spend my money on restaurants and bars rather than pay to government and sit all day explaining each transactions.

1000 times this

 

[Dandyline]

Yeah, and when you finally realize the cost for these setups in multiple countries (company formation, economic substance, lawyers, accountants, residence permits, bank accounts, insurance, travel, rent, utility, phone, transportation, etc) you might just as well have remained in your high tax home country instead of having all that hassle for nothing. Plus, it consumes a lot of your time that you could have spent focusing on your business increasing your revenue instead of dealing with bureaucracy and red tape. And then, when you have a setup that works just fine for you, they will introduce another regulation, another tax or another AML directive, or put your offshore country on a grey/black list.

Yes, if you make peanuts, it’s not worth it. When you start to make from 1 MUSD profits per year and dont want to tax 500k, then it’s well worth it.

 

[jafo]

1000 times this

Make that 1 trillion times, brother! Life's too short to be wasting it explaining things to unproductive parasites.

 

[Chukwueze]

I just transferred some money from from an account in my name in a EU bank (in EUR) to an account under my name in a Swiss Bank. It was bounced, apparently for regulatory reasons.

You mean " I just transferred some money from from an account in my name in a EU EMI (Revolut, Wise, N26, Monese ...) to an account under my name in a Swiss Broker (Swissquote, Dukascopy ...). It was bounced, apparently for regulatory reasons. "

If you want to get the desired answer, ask the right question. So tell me please, which EU Bank that you have and to which Swiss Bank you sent to

 

[jafo]

Yeah, and when you finally realize the cost for these setups in multiple countries (company formation, economic substance, lawyers, accountants, residence permits, bank accounts, insurance, travel, rent, utility, phone, transportation, etc) you might just as well have remained in your high tax home country instead of having all that hassle for nothing. Plus, it consumes a lot of your time that you could have spent focusing on your business increasing your revenue instead of dealing with bureaucracy and red tape. And then, when you have a setup that works just fine for you, they will introduce another regulation, another tax or another AML directive, or put your offshore country on a grey/black list.

I disagree with this and here's why...

Hear me out on this one and the mental construct it juxtaposes:

I heard Warren Buffet ask someone this question at a BRK annual meeting in Omaha in the early 90s.

What do you prefer?

(1) Putting 100% of your effort and splitting the profits with people who reciprocate honesty, integrity, respect, trust, admiration, and love, and that will put those profits to good use

or

(2) Putting 100% of your effort and splitting the profits with entitled, ungrateful, unproductive, negative, lazy people who will use their share of the profit to further perpetuate corruption, abuse, injustice, fraud, and maybe even mala in se.

That question did it for me.

Of course, YMMV!

 

[algotrader]

Life's too short to be wasting it explaining things to unproductive parasites.

If you move to UAE you will now end up having mandatory audits as well and most will likely end up paying CIT or personal income tax in a few years. You will end up wasting your time finding ways to transfer your funds from/to Europe. Maybe, it won't be possible at all anymore. The EU and the US are so powerful that they can cut off any other country from the global financial system at any moment. It's only a solution for those who don't have any business related to those countries and who don't invest in these countries (which is a small minority).

 

[manukahoney]

The friend of mine received the confirmation from CIM bank that they will not do any EUR transfers (in or out) with UAE, both on personal and corporate level. USD is OK, but not EUR.

Basically, yes - it has everything to do with EU black list and UAE is trying hard to get out of it to maintain the foreign cash flow in the country. You can only so long get money from sanctions Russians and Chinese cash always comes with strings attached. EU (and UK) money investment is a cornerstone of UAE economy.

 

[JackAlabama]

The friend of mine received the confirmation from CIM bank that they will not do any EUR transfers (in or out) with UAE, both on personal and corporate level. USD is OK, but not EUR.

Basically, yes - it has everything to do with EU black list and UAE is trying hard to get out of it to maintain the foreign cash flow in the country. You can only so long get money from sanctions Russians and Chinese cash always comes with strings attached. EU (and UK) money investment is a cornerstone of UAE economy.

It looks like its more an issue of cim bank which basically takes everyone with a heartbeat from what ive heard and has 0 foothold among the locals. Both not ideal for future free flows of the golden juice.

 

[jafo]

If you move to UAE you will now end up having mandatory audits as well and most will likely end up paying CIT or personal income tax in a few years.

Where would I have mandatory audits and paying CIT or personal income in a few years? UAE?
If UAE, is this a sure thing or a prediction based on past "performance"?

 

[JJReddick]

You mean " I just transferred some money from from an account in my name in a EU EMI (Revolut, Wise, N26, Monese ...) to an account under my name in a Swiss Broker (Swissquote, Dukascopy ...). It was bounced, apparently for regulatory reasons. "

If you want to get the desired answer, ask the right question. So tell me please, which EU Bank that you have and to which Swiss Bank you sent to

I asked the right question young man. No EMI involved. Have two accounts, one in a fully regulated EU bank and another one in an equally fully regulated Swiss bank. Both accounts in my name. EU bank says Swiss bank rejected the payment. Swiss bank says money never even arrived at the doorstep.

FYI swissbank is a regulated bank, besides being a broker.

 

[jafo]

I asked the right question young man. No EMI involved. Have two accounts, one in a fully regulated EU bank and another one in an equally fully regulated Swiss bank. Both accounts in my name. EU bank says Swiss bank rejected the payment. Swiss bank says money never even arrived at the doorstep.

FYI swissbank is a regulated bank, besides being a broker.

Happened to me last week too. The first bank never sent anything. The first bank said it was returned by the recipient's bank. It was a recurring payment I do from myself to myself. I did it again and this time it went through, but not until after I uploaded an invoice.

 

[JJReddick]

Happened to me last week too. The first bank never sent anything. The first bank said it was returned by the recipient's bank. It was a recurring payment I do from myself to myself. I did it again and this time it went through, but not until after I uploaded an invoice.

Interesting thanks for the feedback