AML in UAE: How to File a Dealers in Precious Metals and Stones Report?
The Dealers of Precious Metals and Stones (DPMS) are required to ensure AML compliance in the UAE by submitting the Dealers in Precious Metals and Stones Report (DPMSR). The DPMSR submission requirement in the UAE is mandatory for DPMS as per the Circular No. 08/AML/2021 issued by the Ministry of Economy effective from June 12th 2021. Compliance failure may attract severe consequences and therefore it is advisable to seek the advice of the best AML consultants in Dubai.
Businesses classified as DPMS need to understand the process and requirements to file a DPMSR in the UAE to avoid any errors. This article will enlighten you on how to submit flawless DPMSRs in the UAE to ensure AML compliance. Read ahead for more insights:
DPMSR Procedure for Transactions with UAE Resident Individuals
A DPMS should obtain identification documents (Emirates ID or Passport) for cash transactions equal to or exceeding AED 55,000. It should also register the information in the Financial Intelligence Unit’s (“FIU”) GoAML platform using the recently created DPMSR.
DPMSR Procedure for Transactions with Non-resident Individuals
If the transaction is with an individual who is a no-resident of the UAE, the DPMS must obtain identification documents (ID or Passport) for cash transactions equal to or exceeding AED 55,000. They should also register the information in the FIU’s GoAML platform using the newly created DPMSR.
DPMSR Procedure for Transactions with Entities/Companies
If the transaction is with an entity or a company, the DPMS are required to obtain a copy of the trade license, and identification documents (Emirates ID or passport) of the person representing the company, in transactions equal to or exceeding AED 55,000 in cash or through wire transfer. They should also register the information in the FIU’s GoAML using the newly created DPMSR.
Record Keeping Requirements for Submitting DPMSR
Companies that classify as DPMS are required to keep records of all documents and information related to the transactions for a minimum of 5 years. Assistance of AML consultants in Dubai can be availed to ensure compliance with the record-keeping requirement.
Why DPMSR was made Mandatory on goAML for DPMS?
The DPMS that classify as Designated Non-Financial Business and Professions (DNFBPs) are required to meet different forms of AML compliance requirements in the UAE, including the DPMSR submission. This is due to the increased vulnerability of the sector to the risk of money laundering and terrorist financing (ML-FT). As per the UAE’s Money Laundering/Financial Terrorism National Risk Assessment (NRA): “The overall large size and openness of the UAE Financial Sector, its geography, the large proportion of foreign residents, the use of cash in transactions, and the highly active trade in gold and precious metals and stones, were also inherently open to ML/TF abuse by criminals.”
Moreover, the scale and diversity of small and mid-sized participants in the markets for precious metals and precious stones, and the generally low level of awareness and education among them in regard to the ML/FT risks, due-diligence requirements, and the red-flag indicators associated with their trade, increase the vulnerability of DPMS to exploitation by criminals and terrorists. Considering all these factors, the government has made it mandatory for the DPMS to submit DPMSRs in the UAE goAML platform without fail.
Is DPMSR Submission the Only Reporting Requirement for DPMS?
The submission of DPMSR is an additional requirement for the DPMS to ensure AML compliance in the UAE. DPMS that qualify as a DNFBP are required to comply with other AML reporting requirements including the filing of Suspicious Transaction Reports (STRs). Avail of AML consulting services in Dubai to get advice on AML reporting requirements. DPMS are also required to comply with the following AML obligations in the UAE:
- Identify and assess ML/FT risks
- Establish, document, and update policies and procedures to mitigate the identified ML/FT risks
- Maintain adequate risk-based customer due diligence (CDD) and ongoing monitoring procedures
- Identify and report suspicious transactions
- Establish an adequate governance framework for AML/CFT
- Appointing an AML/CFT Compliance Officer
- Give AML training in the UAE for staff
- Register in the goAML platform
Consult with the Best AML Consultants in Dubai, UAE
DPMS entities need to file DPMSR to ensure AML compliance in the UAE. However, the process can be complex for businesses for which they can consult with AML consultants in Dubai such as Jitendra Chartered Accountants (JCA). JCA is one of the top providers of AML consulting services in Dubai with years of experience. Our AML advisers in Dubai are highly qualified and come with impressive experience and expertise. JCA provide services such as implementing AML Policy and Procedures, assessment of tools and controls design, review of current AML Policy, planning of AML-CFT framework, AML audit and reporting, AML training for the staff, Assistance with goAML registration and AML penalty appeal services.