RIYADH, 16 March 2005 — Strict measures imposed by the six-nation Gulf Cooperation Council (GCC) to curb money laundering and terror financing will top the agenda of the meeting of the governors of GCC central banks, which is scheduled to be held here on March 19.
The meeting will also review the progress made by the Gulf states to set up a monetary union with special reference to the new monetary and financial developments of the region.
“The two-day meeting will focus on efforts to check money laundering and discuss the criteria for monetary and financial convergence besides the legislative and institutional frameworks for the monetary union”, said a press statement released by the GCC General Secretariat here.
The move is significant keeping in view the fact that the Gulf states have already adopted a number of measures for fighting money laundering and for creating a monetary union.
In particular, Saudi Arabia has stepped up efforts in this direction by introducing a number of statutory and administrative measures.
Riyadh had signed the UN charter to prevent money laundering, enacted new rules and regulations, instructed executive agencies and provided the necessary support to working teams entrusted with the task of regulating financial transactions. Saudi Arabia has also implemented all UN Security Council resolutions related to terror financing.
Referring to the meeting of the GCC central bank governors, the statement said that “intensive consultation and discussions will be held in order to work out arrangements to achieve the set goals of creating a monetary union, single monetary authority and currency in the GCC countries by the year 2010.”
The UAE earlier offered to host a central bank of the GCC as the six member states begin to structure the broad framework to launch a unified currency recently.
According to proposals made in earlier meetings, GCC central bank is to be established in mid-2006.
The Gulf authorities are said to be studying two options — either to set up a monetary coordinating authority linked to the secretariat, or assigning the GCC states’ central banks to monitor the monetary policy. A technical unit has already been set up by the GCC General Secretariat to study details of how such an entity can be established.