To Real Estate Agents, Precious Metal and Stone Traders, Account Auditors and Company Services Providers, the Ministry of Economy extends its greetings and best wishes of continuous success.
Introduction
Cabinet Resolution Nos. (3/1و) and (28 م/ 4 و ) of 2019, which vest in the Ministry of Economy the duty of supervising and regulating Designated Non-financial Businesses and Professions (DNFBPs) of entities operating in the State, including the entities operating in commercial free zones, confronting money laundering crimes and combating financing Terrorism and the financing of illegal organization and Accreditation as a regulator.
In the framework of the Ministry of Economy’s endeavors to facilitate task and simplify procedures that must be implemented to achieve international requirements and obligations regarding Anti-Money Laundering and Combating Financing of Terrorist (AML/CTF), and in implementation of the relevant legislation set forth below, we seek to explain and clarify all written requirements in the texts of this circular or in videos and associated explanatory documents.
The Anti-Money Laundering Department works with you to enforce Anti-Money Laundering and Combating Financing of Terrorist (AML/CTF) legislation, Pursuant to:
- Federal Decree-law No. (20) of 2018 On Anti-Money Laundering And Combating The Financing Of Terrorism And Financing Of Illegal Organizations.
- Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation of Decree-law No. (20) of 2018 On Anti-Money Laundering And Combating The Financing Of Terrorism And Financing Of Illegal Organizations.
- Cabinet Decision No. (58) of 2020 Regulating the Beneficiary Owner Procedure.
- Cabinet Decision No. (74) of 2020 Regarding Terrorism Lists Regulation and Implementation of UN Security Council Resolutions on the Suppression and Combating of Terrorism, Terrorists Financing & Proliferation of Weapons of Mass Destruction, and Related Resolutions.
According to the above legislation, you must do the following:
First: Appointing a Compliance Officer:
- The legal person (the company) shall appoint a natural person who shall be responsible for compliance, in accordance with Article (21) of Implementation Regulations No. (10) of 2019 for Federal Decree-law No. (20) of 2018 On Anti-Money Laundering And Combating The Financing Of Terrorism, and Article (11) Cabinet Decision No. (58) of 2020 Regulating the Beneficiary Owner Procedure.
The compliance officer defines as: A natural person who is employed by a legal person (the company) or is appointed, who has the appropriate competence and experience, and is tasked with undertaking on behalf of the legal person (the company) to provide all relevant data, procedures and obligations that are enforceable For the supervisory authority (Ministry of Economy) to fulfill the requirements of (AML/CFT) legislation.
- Maintain/Keep the compliance officer’s data and providing it upon request (name, contact information, a valid copy of passport, ID card and a letter of assignment from the company to the duties of the compliance officer).
- The duties of the compliance officer as per Article (21) of the Implementation Regulations No. (10) of 2019 for Federal Decree-law No. (20) of 2018 On Anti-Money Laundering And Combating The Financing of Terrorism.
Second: Performing the due diligence measures:
It is the process of identifying or verifying the information of the client or the beneficiary Owner, whether he is a natural or legal person, or a legal arrangement, the nature of his work, the purpose of the business relationship, the ownership structure and the control over it, for the purposes of implementing Federal Decree Law No. (20) of 2018 and its implementation regulation.
To implement the due diligence requirements, refer to Implementation Regulations No. (10) of 2019 for Decree-law No. (20) of 2018 On Anti-Money Laundering And Combating The Financing Of Terrorism.
(Implementation Regulations: Chapter Three: Article 5 to Article 14, Chapter Four: Article 15)
Third: Reporting suspicious transactions:
- In the event that customer due diligence procedures and measures taken and there were suspicious in any form, the compliance officer must submit the suspicious transaction reports to the FIU through the goAML system.
- Establishments of DNFBPs and their directors, officers and employees must not disclose, directly or indirectly, to the client or any other person that they reported, or they are about to report about suspicious transactions or information and data related to them, or that there is an investigation thereof, for the purpose of Customer not to be alert.
(Implementation Regulation: Chapter Three Article 13, Chapter Four Point 2 of Article 15, Chapter Five Article 16, 17)
Register in the goAML System:
- Registration in the goAML system is a prerequisite for submitting suspicious transaction reports (STRs).
- Definition of the goAML system: it is an internationally approved electronic system to collect and analyze financial and non-financial information to confront money laundering and combat the financing of terrorism. It enables the Financial Intelligence Unit (FIU) in the United Arab Emirates with better monitor trends during analyzing reports of suspicious activities and transactions to reduce potential threats at more efficient rate and potency.
- The legal person (the company) is obligated to register in the goAML system of the Financial Intelligence Unit (FIU), as a requirement for effective enforcement of legislation to combat money laundering and terrorist financing in receiving suspicious transactions reports.
- To know more about the system and how to register, please click on the following link:
https://www.economy.gov.ae/English/aml/pages/str.aspx
Fourth: Registration in the automatic reporting system for sanction lists:
- Designated non-financial businesses and professions (DNFBPs) should implement Cabinet Decision No. (74) of 2020 Regarding Terrorism Lists Regulation and Implementation of UN Security Council Resolutions on the Suppression and Combating of Terrorism, Terrorists Financing & Proliferation of Weapons of Mass Destruction, and Related Resolutions.
- Designated non-financial businesses and professions (DNFBPs) must register in the automatic reporting system for sanctions lists, to obtain automatically and instantly updated lists of targeted financial sanctions from the United Nations Security Council consolidated sanctions lists and domestic terrorism lists.
- Subscription to the automatic reporting system for sanctions lists can be done through the website of the Committee for Goods and Material Subjected to Import and Export Control to ensure that updates are obtained directly as soon as they are issued.
- To subscribe, please click on the following link:
https://www.uaeiec.gov.ae/en-us/united-nations-security-council-sanctions
- Ensure full compliance with Article (15) and Article (21) of Cabinet Decision No. (74) of 2020, which outline the requirements of freezing of funds under the UNSC Consolidated lists or Local lists.
- Upon a new update to the relevant sanctions list, screen customer database without delay when new names are listed. Then inform the supervisory authority if there is a match. (Within hours of designation by UNSCR or UAE Federal Cabinet).
For more information about the procedures to be implemented in this regard, please refer to Circular No. 1/2020 (Concerning the Procedures of Cabinet Decision No. (74) of 2020 regarding the terrorist list system and the implementation of security council resolutions related to preventing and suppressing terrorism and its financing, counter of proliferation and its financing, and the relevant resolutions.
Inspection procedures:
- The Ministry of Economy applies inspection procedures to designated non-financial businesses and professions (DNFBPs), in accordance on risk-based approach and in accordance with the recommendations of the Financial Action Task Force (FATF) and international practices and standards. - The Ministry applies the methodology of onsite and offsite inspection.
Inspection procedures are summarized as follows:
- Sending a letter to the companies to inform them of the date of the inspection process and to specify the requirements.
- Starting the onsite inspection process and visiting companies according to the prepared schedule.
- Fill out inspection forms according to what observed during the inspection visit.
- Request additional documents from companies during or after the inspection visit if required.
- Imposing fines and violations on violating companies.
For legislation Guidance, and instructions Related to Anti- money laundering and combating financing of terrorism, please visit the Ministry of Economy website at: https://www.economy.gov.ae/English/aml/pages/default.aspx