DNFBPs: A Checklist for Ensuring Smooth AML Compliance in UAE
The United Arab Emirates has a robust regulatory and legal framework when it comes to dealing with money laundering and financing of terrorism and terrorist organisations. All DNFBPs- Designated Non-financial business and professionals such as lawyers, real estate brokers, dealers in precious metals and gold (DPMS), Trust and corporate service providers (TCSP), auditors and accountants have to comply with AML regulations and requirements for smooth operations and successful business. Compliance is not limited to catching money launderers only. It is, however, a thorough process with long-term effects on your business. Businesses must have a deeper understanding of AML regulations and requirements and where they stand in complying with them.
AML compliance is a complex process which should not be taken for granted. It is suggested that businesses take assistance from qualified AML consultants in UAE such as Jitendra Chartered Accountants to understand AML and comply with the laws better. Having the right AML consultant at your back will benefit you greatly.
Following is a checklist for smooth AML compliance in UAE;
Register at goAML
GoAML is an online portal introduced by the Financial Intelligence Unit (FIU) in UAE where the FIU receives reports about suspicious activities and transactions. All businesses that are subject to compliance with AML regulations need to register with FIU at goAML.
Subscribe at UAEIEC
A subscription is required to be made on the UAEIEC website to get regular updates for recent changes in the UN Sanctions list and UAE terrorist lists to comply with Targeted Financial Sanctions (TFS) rules in the UAE.
Identify and Minimise Risks
Enterprise-Wide Risk Assessments (EWRA) are important for businesses to carry out in order to identify and minimise risks related to money laundering, financing of terrorism and terrorist organisations. Identify occurrence likelihood, check the impact on business, and utilise control measures.
Risk Screening (Pre-Onboard)
Every FI/DNFBP/VSP is required to conduct risk screening before onboarding any customer to know about listings on UN Sanctions list and UAE terrorist lists, PEP, and adverse media, so that necessary due diligence measures can be taken.
KYC & CDD
Know Your Customers by incorporating effective due diligence measures. As soon as a business relationship starts, customer information must be acquired and customer identity must be verified through valid sources. Also, due diligence measures should be conducted accordingly like simplified for low risk and enhanced for Medium or High Risk.
Report Suspicious Transactions or other submissions
Businesses must create indicators according to the type of business activities that can highlight suspicious activities and transactions. Suspicious transactions and activities must be reported to FIU by way of the goAML portal. In addition, DPMS is required to submit DPMR, and Real Estate agents are required to submit REAR Reports.
Develop Internal Control
Internal controls involve a series of measures that businesses need to adopt in their organisations. This includes reporting procedures for suspicious activities and transactions, CDD measures, crime combating measures, employment criteria efficiency measures, preparation of training and workshops, and auditing functions for testing internal control measures.
Hire the Best AML Compliance Officer
Hiring an expert AML compliance officer is also a part of internal control measures. The compliance officer appointed by the business must be qualified as well as authorised to perform compliance officer duties. Internal control highly depends on the AML compliance officer.
Keep Records
Various records need to be kept in accurate order for the purpose of AML compliance. Records can include customer information, transaction information, risk assessment results, due diligence reports, audit reports, etc. All these records must be kept by businesses so that they can be used for the best purposes whenever required. Also, the FIU can acquire these records at the time of reporting suspicious transactions.
Learn AML Regulations
Businesses should know what are AML regulations in UAE and what laws govern these regulations;
FIU Guidelines
CBUAE (Central Bank of United Arab Emirates) AML Regulations
Cabinet Decision No. 10 of 2019 on Implementing Regulations of Federal Decree-Law No. 20 of 2018
Federal Decree Law no. 20 of 2018 on Anti Money Laundering & Combating the Financing of Terrorism & Terrorist Organisations
AML Training & Governance
Adequate training should be provided to every member of the organisation including employees. This training should be governed by AML officers and higher management.
Why Choose Jitendra Chartered Accountants?
It is vitally important for businesses to create, review and update their AML compliance and control policies. Along with managing various business operations, it is quite difficult for business owners to give the required attention to AML processes. This is why having expert AML consultants like Jitendra Chartered Accountants in place is crucial for businesses.
At JCA, our team of expert AML consultants assist financial institutions, VASPs, NPOs, and DNFBPs to create, review and regularly update their AML policies and control strategies. Our experts also help in staff training, due diligence measures, AML audits and other important AML functions. Consult our experts today to comply with AML in UAE better.