Best Practices for Setting up an AML Compliance Department in 2024

Businesses that are highly exposed to crimes of money laundering and financing of terrorism (ML/TF) are advised to set up an in-house Anti-money Laundering (AML) compliance department. AML compliance department is an independent department functioning within a regulated entity to counter ML/TF crimes by following the regulatory requirements and implementing the AML compliance framework in the company.

The AML department can save the company from incurring hefty AML penalties in the UAE by ensuring the business is complying with the AML regulations. You need to follow certain best practices to ensure the AML compliance department is operating efficiently.

AML consultants in Dubai can help you set up an efficient AML compliance department within your firm. The below blog provides you with insights on the best practices for setting up an AML compliance department in 2024:

Analyze your compliance requirements

Understand the department’s objectives before creating an AML compliance department in your company. Analyse how the department will help you accomplish your strategic goals. Analyse your compliance requirements before setting up the department.

You may list the laws, regulations, guidelines, and industry standards relevant to your business. You should also identify the potential ML/TF risks your business faces.

Recruit skilled professionals

Skilled professionals are required to perform key duties such as monitoring transactions, performing KYC and KYB, and building risk profiles. Even though you can automate several functions, human skill is required to carry out actions such as running systems, analysing results, and making decisions.

You can either hire externally or depute eligible people from other departments in the organisation to be part of the AML compliance department. Before hiring, you need to check if they have skills, educational background, experience in regulatory compliance activities, relevant knowledge of the UAE AML requirements, commitment to the entity’s AML goals, and criminal history/adverse media.

Allocate sufficient budget for the AML department

You need to prioritise the requirements of your AML department while allocating the budget. Since any gap in your AML framework will lead to hefty penalties and severe consequences, the AML compliance department should receive an adequate budget to run without any roadblocks. The more you spend on the department, the less money you will lose on penalties and other punishments.

Impart training for the AML department

You are creating an AML compliance department in the UAE from scratch, which means the team members need to be trained on the UAE AML law and related regulations and compliance requirements.

In the absence of AML training in the UAE, all your compliance efforts will go in vain. AML advisers in Dubai can help you train the members of your internal AML department.

Keep up with the regulatory authorities and their guidelines

The UAE AML regulatory authorities have specific regulations and guidelines for each sector. For example, there are separate AML guidelines for Financial Institutions (FIs), Designated Non-Financial Businesses and Professions (DNFBPs) and Virtual Assets Service Providers (VASPs).

Make sure that your UAE AML compliance department team is aware of these regulations and guidelines. AML firms in Dubai can help your team to be aware of the regulatory authority guidelines.

Create a code of conduct for the department

Once the department is ready, you should create a code of conduct for the team. This way you can ensure that your team members perform as per the framework you have created for AML compliance in the UAE.

Provide access to critical data

Your team should have access to data such as customers and their identities, transactions, countries of operation etc. Your AML compliance process will be stalled if you deny the team access to data.

Hire the Best AML Consultants in Dubai, UAE

Companies wishing to build an AML compliance team in the UAE can adopt the best practices mentioned in this blog. If you require any assistance in setting up a compliance team, you can hire the services of the best AML consultants in Dubai such as Jitendra Chartered Accountants (JCA).

We are one of the top providers of AML compliance services in Dubai, UAE. JCA is dedicated to saving you from incurring hefty AML penalties in the UAE by building a strong compliance framework. JCA provides robust AML consulting services in Dubai with a focus on customer onboarding KYC process, and risk profiling of customers. We also offer AML training for companies on customer due diligence procedures and help comply with UAE AML laws and regulations.