AML Documentation

Anti-Money Laundering (AML) compliance services assist organizations in identifying suspicious activity linked to illegal crimes such as money laundering and terrorism funding. Businesses are under great pressure from increased regulation and investigations by international and local authorities, which has resulted in significant assessments, audits, and litigation.

The UAE is a major international financial and business center. The country has numerous free trade zones, which attract huge companies while also posing money laundering and terrorist financing risks. To address these concerns, the UAE has strict anti-money laundering laws and regulations in place. In recent years, the UAE has made significant progress to improve its anti-money laundering regulations. This includes updated standards for financial companies, which will be announced in June 2021, as well as the creation of a new specialized anti-money laundering court. This Service will discuss the AML documentation in UAE.

The UAE's AML Law applies to financial institutions, banks, insurance companies, Designated Non-Financial Businesses and Professions, and Virtual Asset Services Providers. The Designated Non-Financial Businesses and Professions (DNFBPs) are:

• dealers in precious metals and stones.
• Real estate agents and brokers.
• Trust and Corporate Service Providers.
• Auditors and Independent Accountants
• Attorneys, notaries, and other legal professionals

What is AML?

AML (Anti-Money Laundering) is a widely recognized term for combating and preventing money-related financial crimes. The Anti-Money Laundering (AML) process consists of legislation, laws, and policies designed to restrict and combat money laundering activities and crimes. Financial institutions and banks must implement anti-money laundering legislation.

AML Documentation  

Natural Persons

Information 

• Personal information such as name, date of birth, nationality, gender, contact information, and address
• Tax number
• Details about the occupation, including the employer's name and address.
• Purpose of transaction

Documents

• Identification: Emirates ID, passport, driving licence, or any other government-issued document with a photograph.
• Address verification: Utility bill, municipal tax record, property purchase or rent agreement, bank statement, insurance policy, or any other government-issued document that captures address.

Corporate/Legal Entities

Information 

• Organisation details such as name, date of establishment, nature of business, and address information for directors, shareholders, and senior management
• Annual Report for the Previous Year

Documents

• Identification: Certificate of Incorporation / Memorandum of Association / Articles of Association, Trade License, /and Certificate of Good Standing Address.
• Verification: Utility bill / municipal tax record /property purchase or rent agreement /bank statement / insurance policy. 
• Others: Audited Financial Statements, Register of Shareholders/Directors/UBO, Board Resolution Appointing Authorised Signatories
  

DIRECTORS/UBO/PARTNERS/SHAREHOLDERS

• Information and Documentation: Same as Natural Person 
• Directors/Senior Management: Designation. Partners/Shareholders: % of shareholding
• UBO: Reason for qualifying as UBO.

Foreign Persons

• Bills or statements from public utilities
• Documents issued by both local and national governments
• Registered property purchase, lease, or rental agreements
• Bank statements, credit or debit card statements, or insurance policies are examples of documents issued by supervised third-party financial organizations.
  
  

Why is AML Documentation important?

A consumer must always present an official identity document, such as a passport or driver's license, for any identity verification process. Additional documents confirming the customer's identity and/or address, such as a utility bill, may also be requested. The validity and accuracy of a check depend on verifying the legitimacy of all the papers that are included.

If the corporation cannot show that they have verified these documents—especially if there is a possibility of money laundering—they could be subject to legal action. Significant fines, legal repercussions, and harm to a company's reputation may result from this.

Organisations can detect when a criminal is attempting to fraudulently utilize their services by validating the authenticity of documents and reporting that individual to the appropriate authorities.

Conclusion

Reyson Badger offers Anti-Money Laundering (AML) compliance services in UAE, with a specific focus on the UAE market. We are committed to increasing business compliance in the UAE with all essential anti-money laundering consultancy and countering terrorist funding through proper rule and regulation enforcement. Our AML consultants relieve you of the strain of AML compliance, allowing you to focus on your business.