How to Develop an AML-CFT framework for your company

Financial crimes are a grave danger. Money laundering and terrorism financing are not just crimes; they put your company at legal risk. If you’re running a business in the UAE, ignoring AML/CFT compliance rules could lead to hefty fines or even a shutdown.
You can protect your business by building a strong AML (Anti-Money Laundering) and CFT (Countering Financing of Terrorism) compliance system/framework. This guide explains how you can do that step-by-step, using clear rules, smart checks, and simple processes that keep your business safe.

Jitendra Chartered Accountants (JCA) has qualified AML consultants in the UAE who help businesses develop strategies and frameworks for AML/CFT risk management and compliance.

1. Know Your Risks First

Every company faces different levels of financial crime risk. You need to look closely at:
● Who your customers are: Some customers, like politically exposed persons (PEPs), are riskier.
● How payments happen: Cash-heavy businesses, crypto use, or international transfers need more checks.
● Where your clients are from: Countries under sanctions or watchlists raise red flags.
Once you understand these risks, you can build your policies to match; there’s no guesswork. AML consultants in Dubai can help you build these policies.

2. Set Your Rules in Writing

Your business must have written AML/CFT policies. These must include:
● How you check your customer’s identity (this is called Customer Due Diligence or CDD)
● How will your team report any suspicious activity?
● How long will you keep transaction records?
● Who is in charge of making sure all rules are followed?
This document is not just paperwork. It shows regulators that you take compliance seriously.

3. Allocate a Compliance Officer

Assign a single person to oversee your AML activities. This compliance officer or AML consultant should:
• Ensure that your employees adhere to the guidelines.
• Watch out for any unusual activity.
• Consult regulators when necessary.
• Revise your guidelines as new risks emerge
They don’t need to do everything alone, but they are the main point of contact.

4. Check Every Customer Properly

Your customers must go through proper checks. This means:
● Verifying identity using official documents.
● Doing extra checks for high-risk clients, like asking where their money comes from.
● Watching their transactions regularly, not just once.
If you ignore this step, you could miss early warning signs of criminal behavior. You can even take help from AML consultants in the UAE in this case.

5. Keep Records for At Least 5 Years

The law in the UAE says you must save:

● All customer transactions; what they sent, where, and to whom.
● Reports about any risks you found.
● Copies of your AML policy and staff training.
If regulators ask for this information and you don’t have it, your company could face penalties and other legal troubles.

6. Train Your Staff Often

Your employees are the first line of defense. They should be trained to:

● Know the AML and CFT laws in the UAE.
● Spot signs of unusual behavior.
● Report problems the right way.
Training should be regular; not just once when they join. Financial crime tactics keep changing. Your team needs to stay updated. AML consultants in Dubai can help you train your staff.

7. Do Internal Checks or Hire Auditors

Don’t wait for problems to surface. Regular audits help you find gaps in your system.
● Check if your rules are followed.
● Look for any missed risks or errors.
● Make corrections before it’s too late.
Audits can be done by your own team or an experienced auditing firm like JCA. The key is honesty and improvement.

8. Use Automated Tools for Screening

Manual checks take time and can miss details. You can use software for:

● Screening names against sanctions lists.
● Flagging unusual transactions in real-time.
● Identifying politically exposed persons (PEPs).

Ongoing screening is a must in the UAE. Depending on your business risk, use tools that fit the size and nature of your business. Bigger operations need more advanced systems, which most AML consultants in Dubai use these days.

9. Follow Sanctions and PEP Screening Guidelines

Your business needs to:

• Screen customers and transactions.
• Freeze assets when someone is listed as sanctioned.
• Maintain your screening tools up to date with the most recent local and international data.

How can Jitendra Chartered Accountants Help?

In today’s world, financial crime isn’t far away. It’s your job to ensure your business doesn’t become a target or a tool for illegal money. If you’re serious about staying safe, hire AML consultants at JCA now. We help you develop clear policies, train your people, watch your transactions, and use the right approaches and tools. It’s not difficult when you have experts like JCA by your side. Just a single click will lead you to our professionals.