AML / CFT Regulations in UAE

The UAE has robust AML/CFT regulations in place to combat money laundering and terrorism financing. The regulations outline the responsibilities of financial institutions, including banks, insurance companies, and other businesses, to implement and maintain effective AML/CFT policies and procedures.

“Money laundering is the process of converting illegally obtained funds into legitimate money or assets. It involves concealing the source of illegal funds and disguising them as legitimate assets”.

“Terrorist financing refers to the provision of funds to support or facilitate terrorism activities. The act of providing financial support to terror groups poses a significant threat to security, as legitimate business services can also be used to fund such activities”.

Some key components to build an effective AML/CFT compliance program in the UAE include:

• Initial Assessment

  • Governance framework, appointing a compliance officer & ensuring adequate staff screening

• Internal controls and policies

  • Establishing, documenting and updating policies & procedures manuals, and safeguards.

• Risk Assessment

  • Review of customer risk assessment methodology

  • Assisting in the development of a customer risk assessment model considering NRA guidelines

  • Assisting in preparation of Risk Register – Risk identification and mitigation

• AML/CFT Software Advisory and Setup

  • Assistance in the selection of appropriate AML/CFT software

  • Conduct software demos

  • Review of existing core solutions, risk profiling, screening, and monitoring software solutions

• MIS and reporting of suspicious activities

  • Assistance in registration on the goAML Portal

  • Guidance to AML Compliance Officer for performing his day-to-day function

  • Assistance in the preparation of statutory reports, if required

  • Assistance in Screening of customers and counterparty

  • Conducting Audits/reviews as per statutory requirements

• KYC and Customer due diligence

  • Maintaining adequate risk-based CDD and ongoing monitoring procedures.

• Record keeping & Documentation

  • Periodic review of onboarding documentation and transactions

  • Assistance in the preparation of documentation standards

• Regulatory Remediation

  • Assisting businesses in addressing regulatory issues and deficiencies identified by regulatory authorities.

  • To remediate any compliance gaps and ensure the business meets regulatory expectations.

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