WHAT IT IS and WHAT YOU HAVE DONE SO FAR

In September 2018, UAE introduced Federal Decree-law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism, and related Regulations were issued under the Cabinet Decision No. 10 of 2019 in February 2019 which requires, followings are liable to register for goAML.

 

·Financial Institutions, like banks, exchange houses, Insurance Companies, Finance Houses, entities involved in finance lease, companies providing credit facilities of all types etc.

·Designated nonfinancial Businesses and Professions (DNFBPs): Anyone who conducts one or several of the following commercial or professional Activities.

oBrokers and real estate agents

oDealers in precious metals and precious stones

oLawyers, notaries, and other independent legal professionals

oAuditors and Accountants

oCorporate Service Providers and Trusts

·Relevant Authorities

·

Registration with goAML must have been done. But this is on only a beginning.

You are a DNFPBs and under that as ‘Corporate Service Provider’. Therefore, liable to comply with all laws, rules, regulations, and procedures related to Anti-Money Laundering and related areas.

 

WHAT’S REQUIRED

Entities who are liable to register and have registered are required to comply the followings:

1.Identifying and assessing ML/FT risks

2.Establishing, documenting, and updating policies and procedures to mitigate the identified ML/FT risks

3.Perform customer due diligence

4.Identifying and reporting suspicious transactions through goAML application

5.Putting in place an adequate governance framework for AML/CFT, including appointment of Compliance Officer

6.Maintaining adequate records related to all of the above; and

7.Comply with the directives of the Competent Authorities of the State

Non-compliance of the above is a criminal offence and lead to administrative penalties and/or financial penalties ranging from AED 50,000 to AED 5 million for each violation.

 

WHAT WE CAN DO

At #TheTotalCFO, we have learned ourselves and with due consultation with experts in this compliance and due diligence field, established our own due diligence and necessary policies & procedures on transactions originating from, routed through, or destined to not only from high risk jurisdictions as well as any financial or non-financial engagement involving an individual or entity hailing from them (by virtue of nationality, residency, place of incorporation) but also from jurisdictions under increased monitoring.

It is important to note that entities have diverse legal, administrative, and operational frameworks and different financial systems, and so cannot all take identical measures to monitor under AML/CFT systems

We would like to share our learning and expertise gained by implementing compliance and due diligence policies & procedures in this regard in our own firm, with #Yours.