Canara Robeco Mutual Fund has temporarily halted investments from its investors in the UAE, including existing SIPs (Systematic Investment Scheme) and STP (Systematic Transfer Scheme). This information is based on a source who did not wish to be named.
This was done after the UAE was included in the ‘Grey List’ by the Financial Action Task Force (FATF). The fund house is reviewing its processes internally to establish enhanced due diligence for investment flows from the UAE and then back to its investors.
The FATF is an international intergovernmental body established to combat money laundering and terrorist financing on a global scale. It sets international standards aimed at preventing such illegal activities. The FATF monitors countries to ensure that they implement the FATF and are held accountable if they do not comply. This is called the ‘Grey List’, which includes the names of countries or jurisdictions that have been placed under increased surveillance as they actively work towards resolving issues related to money laundering, terrorist financing and proliferation financing. We do. The list is updated every year and this year the United Arab Emirates was added to
Mint has approached the AMC on the matter and their response is awaited.