A well-designed compliance programme, integrated into your company’s business operations, covering your management of internal policy, general regulations and inhouse employee training. Through employing a compliance initiative and ensuring it’s standard practice across your organization, risk of violations will be mitigated and safeguarded against.
Know Your Customer (KYC) is the term used for when a business carries out the appropriate checks on a prospective client, through a series of systematic checks and information gathering. The aim of this process is to prevent, detect and deter Money Laundering (ML) / Financing Terrorism (FT) risks in your business. Keeping a record and maintaining accurate reports on the organisation’s clients is a critical element to ongoing KYC conformity.
KYC is a global standard and is particularly prominent for certain industries who are required to conduct new and ongoing due diligence on their client base and activity. The processes of KYC are used to protect all stakeholders within the business from violations, which makes KYC a very important aspect and a key interest for investors and firms. For an effective KYC, a business needs to include a process of customer identification, risk profiling, customer acceptance, risk rating, monitoring, investigation and record keeping
Anti-Money Laundering (AML) is the term which is used to refer to the laws, practices and regulations that businesses have in place in order to prevent criminal activity and illegally obtained funds from being used and disguised as legitimate income. This practice of having policies in place for AML measures is becoming increasingly prevalent and strict for financial service providers and Designated Non-Financial Businesses and Professions (DNFBPs) to counteract funding of criminal activity and terrorism. The Combatting of Financing of Terrorism (CFT) is a set of government laws, regulations, and other practices that are intended to restrict access to funding and financial services for those whom the government designates as terrorists. By tracking down the source of the funds that support terrorist activities, law enforcement may be able to prevent some of those activities from occurring.
A Designated Non-Financial Business and Professions (DNFBP) is a compliance categorisation for companies which must uphold a higher scrutiny over their compliance requirements.
DNFBPs are obliged to assess and to understand the ML/FT risks to which they are exposed, and how they may be affected by those risks.
Companies seeing increased governing and responsibilities, with regards to compliance, are those involved in insurance, banking, other financial institutions and other DNFBPs including:
The increased scrutiny necessary for operating within these activities calls for heightened KYC, Due Diligence (DD) and AML checks and measures.
Money laundering and the financing of terrorism are crimes that threaten the security, stability and integrity of the global economic and financial system, and of society as a whole. Combatting money laundering and the financing of terrorist activities is therefore an urgent priority in the global fight against organised crime.
The UAE is deeply committed to combatting money laundering and the financing of terrorism and illegal organisations. To this end, the Competent Authorities have established the appropriate legislative, regulatory and institutional frameworks for the prevention, detection and deterrence of financial crimes, including ML/FT.
AML – Registration
Standard and Enhanced KYC policy
Compliance handbooks/policies
We can help you fulfil certain obligations which constitute the basis of an effective risk-based Anti-Money Laundering (AML) / Counter Financing of Terrorism (CFT) programme. Some of these include:
PPG can provide companies in the UAE with a breadth of services under the domain of AML and CFT compliance. Our expertise, knowledge, and industry experience bring a splash of value to every service that we render to our clients. Our team of AML professionals, compliance experts, financial analysts, technology enthusiasts, economists, policymakers, strategic decision-makers, law enforcement executives, and data scientists ensure to provide quality AML/CFT compliance services for your entire AML journey.
Sovereign PPG has an experienced team with unparalleled knowledge of business incorporation procedures and government regulatory requirements.
We can guide you through the process of regulatory compliance for your business, licensing, visa acquisition and liaising directly with government departments on your behalf.
If you need assistance with setting up a regulatory compliant company, onshore or offshore setup, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Oman, Qatar or KSA, then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at SovPPG@SovereignGroup.com or complete the contact form below and we will be delighted to assist you.
Anti-Money Laundering (AML) in the UAE is a compliance programme that helps businesses to uncover and identify suspicious activities that may be associated with money laundering and terrorist financing. The principal legislation in the UAE is the Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering and Combatting the Financing of Terrorism and Financing of Illegal Organisations.
As criminal legislation is under federal jurisdiction throughout the UAE, including the Financial and Commercial Free Zones, the crimes of money laundering, the financing of terrorism, and the financing of illegal organisations are covered under federal criminal statutes and the federal penal code.
Placement, Layering and Integration
First Stage
Initial or Placement - The launderer introduces his illegal cash into the financial system (Banks / Exchange house).
Second Stage
Layering or Structuring - After the funds have entered the financial system. In this phase, the launderer engages in a series of conversions or movement of the funds to distance themselves from the money.
Third Stage
Integration - in which the funds re-enter the legitimate economy.
DNFBPs shall report Suspicious Transaction Reports (STRs) “via the electronic system of the Financial Intelligence Unit (FIU) or by any other means approved by the FIU”, which is the FIU’s GoAML system
The compliance officer is DNFBP’s officer in charge of reviewing, scrutinizing and reporting Suspicious Transaction Reports (STRs). In this capacity, the Compliance Officer (CO) is ultimately responsible for the detection of transactions related to the crimes of money laundering and the financing of terrorism and of illegal organisations, for reporting suspicions to the Financial Intelligence Unit (FIU), and for cooperating with the Competent Authorities in relation to the performance of their duties in regard to AML/CFT. The CO should ensure the quality, strength and effectiveness of the DNFBP’s AML/CFT programme. The CO is responsible for helping to establish and maintain a strong and effective AML/CFT compliance culture within the DNFBP.
The Executive Office for Control & Non-Proliferation is pleased to announce the publication of an updated Guidance on Counter Proliferation Financing for FIs, DNFBPs, and VASPs
Published Date: 01 November 2022
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