AML Regulation Services

AML regulation services are important in today's financial world, since they try to prevent illegal actions like money laundering and terrorism funding. These services include customer due diligence, transaction monitoring, and suspicious activity reporting, all of which are aimed to assure regulatory compliance. AML regulation services enable financial institutions and businesses to reduce risks, maintain regulatory compliance, and protect the integrity of the financial system by utilizing innovative technology and experience.

As part of the UAE government's efforts to combat these financial crimes, AML/CFT regulations have been issued, backed up by detailed guidelines issued by various supervisory authorities, outlining the principles and best practices required to identify financial crime cases and mitigate risks. Here is a thorough guide on the UAE's Anti-Money Laundering (AML) regulations for DNFBPs.

AML Regulations in UAE

The AML Regulation in  UAE applies to financial institutions, banks, insurance companies, Designated Non-Financial Businesses and Professions, and Virtual Asset Services Providers (VASPs).

• 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

The AML Regulations

The main AML/CFT Regulations applicable are:  

• Federal Decree-Law No. (20) of 2018 On  Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations (as amended by Federal Decree Law No. (26) of 2021), 
• Cabinet Decision No. (10) of 2019 implements Decree-Law No. (20) of 2018 on anti-money laundering and combating the financing of terrorism and illegal organizations, as revised by Cabinet Resolution No. (24) of 2022

Aside from all of that, one must respect the following regulations:

• Cabinet Decision No. (58) of 2020 on Beneficial Owner Procedures,
• Cabinet Resolution No. ((53) of 2021 Regarding the Administrative Penalties against Violators of the Provisions of the Cabinet Resolution No. (58) of 2020 Concerning the Regulation of Beneficiary Owner Procedures
• Cabinet Decision No. (16) of 2021 Regarding the Unified List of Violations and Administrative Fines for the Said Violations of Measures to Combat Money Laundering and Terrorism Financing Subject to the Supervision of the Ministry of Justice and the Ministry of Economy, 
• Cabinet Resolution No. (74) of 2020 Concerning the Terrorist Lists Regulation and Implementation of UN Security Council Resolutions on the Suppression and Combating of Terrorism, Terrorist Financing, and Countering the Proliferation of Weapons.

The essential components of the AML regulations in the UAE are

1. Internal Policies and Controls

• Develop clear AML policies and define precise job descriptions.
• Provide AML awareness training to employees frequently.
• Maintain internal oversight regarding compliance.
  

2. Risk-Based Approach for ML/TF

• Assess and monitor the risks posed by money laundering and financing terrorist activities.
• Profile clients and customers according to levels of risk.
• Keep reviewing transactions and accounts with a higher risk level.
  

3. Due diligence on customers and KYC

• Due diligence on customers and KYC
• Establish the identity of the customers and beneficial ownership.
• Customer information should be updated regularly
  

4. Reporting Suspicious Activity

• Report suspicious transactions to the FIU in the UAE.
• Formulate an internal reporting procedure
• Protect whistleblowers who will report suspicious activity
  

5. Maintaining Records

• All customer and transaction records will be kept for a period of five years or more.
• Records will ensure access in case of any investigations.
• Ensure that the audit trail exists for tracing.
  

These steps help businesses in the UAE adhere to AML standards and therefore reduce financial crime risks.

How to Comply with UAE AML Regulations?

According to FATF guidelines, the UAE requires businesses to implement a risk-based AML/CFT solution, which entails conducting risk assessments to determine the level of risk that particular customers present, and then implementing proportionate compliance measures. Therefore, UAE compliance solutions should include:

Customer identification: Companies must establish and verify their customers' identities through appropriate customer due diligence (CDD), gathering sufficient information to undertake an effective AML/CFT risk assessment. Similarly, businesses should establish ultimate beneficial ownership (UBO) of customer organisations in order to avoid the use of shell corporations and corporate structures to conceal customer identities. 

Enhanced due diligence: When consumers are recognized as presenting a high AML risk, companies should execute enhanced due diligence (EDD), which involves a higher level of investigation, such as obtaining copies of official documents or conducting a third-party audit. 

Transaction screening: Companies must screen customer transactions for AML risk on a regular basis, including transactions with high-risk counterparties or jurisdictions.

Sanctions and watchlists: Because UAE businesses face a higher level of sanctions risk, they must implement an efficient sanctions screening solution to detect designated consumers on international sanctions lists. Firms should also attempt to identify politically exposed persons (PEPs) by screening against PEP lists.

Conclusion

Choosing Reyson Badger for your  AML Regulation Services  means you're getting a team of experts who understand the complexities of compliance and are dedicated to protecting your business. We keep up with the latest regulatory changes and have a strong track record of helping businesses stay ahead of the AML requirements. Our customized solutions fit your unique needs, reducing risks and improving efficiency.