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Do you have following questions regarding AML/CFT?

 

  • What is Anti money laundry Law in UAE?
  • What is goAML?
  • To whom AML/CFT Law is applicable?
  • What is an AML Compliance Program?
  • When to file Suspicious activity report (SAR)?
  • What CDD is?
  • Internal controls and ongoing monitoring of your business are in place?

 

Look no further we will explain all that is required for you to know about AML/CFT compliance in UAE.

What is Money Laundering?

 

 

Money laundering is defined as any transaction aiming at cleaning illegal funds i.e. dirty money in order to make them appear as legitimate and clean.

money laundering

Anti Money Laundering

 

Anti-Money Laundering (AML) is a set of actions that include policies and procedures to prevents money laundering.

 

In UAE, as per UAE govt. portal, Federal Decree No. 20 of 2018 on Anti-Money Laundering and Countering the Financing of Terrorism was issued to develop the legislative and legal structure of the nation to ensure compliance with international standards on anti-money laundering and countering the financing of terrorism. The law aims to:

  • combat money-laundering practices
  • establish a legal framework that supports the authorities concerned with anti-money laundering and crimes related to money-laundering
  • counter the financing of terrorist operations and suspicious organisations.

Requirements to comply with AML/CFT Law

 

  • Risk assessments
  • Preparation of policies and procedures
  • Implementing, monitoring and updating Internal control procedures
  • Know Your Customer (KYC)
  • Customer Due Diligence (CDD)
  • Know your business
  • Transaction reviews and investigations
  • Compliance Officer appointment
  • SAR reporting
AML compliance UAE

FAQ section.

1. Who or which sector is required to register for AML/CFT compliance? Determine if you come under a definition of a Designated Non-Financial Businesses and Professions (DNFBP)?

Any business or professional who is conducting one or more of the activities classified as DNFBPs are required to be in compliance with UAE AML/CFT rules as in real estate agents, Auditors and accountants, dealers of precious metal, trust company/corporate service providers, lawyers.

 

2. How to get registered for AML/CFT? Are there specific dates for businesses to register for AML/CFT?

The Financial Intelligence Unit (FIU) of the Central Bank of UAE launched the anti-money laundering platform ‘goAML’. All Designated Non-Financial Business and Professions (DNFBPs) have to register with the ‘goAML’ system. According to the Ministry of Economy, last date to register in the goAML system was April 30, 2021. However, registrations are still being accepted by the MoE.

 

3. Is there any penalty for non compliance of AML/CFT?

Anti-Money Laundering (AML) violators may face administrative fines ranging from AED 50,000 to AED 1,000,000.

 

4. How we will help?

The goAML system and the Automatic Reporting System for Sanctions Lists are two of the newest anti-money laundering programs introduced by the Ministry of Economy (MOE).

We never want you to miss anything in complying with the requirements. We will make sure to take care of your necessary registration process regarding AML/CFT.

 

5. What is SAR?

When financial institutions detect suspicious transactions, it is their duty to report i.e. suspicious activity report (SAR) to the UAE Central Bank.

 

6. What is CDD?

Customer due deligence.Customers who present a higher money laundering risk should be subject to enhanced due diligence measures (EDD).