United Arab Emirates

Guide to Compliance

Money laundering, terrorist and proliferation financing can destabilize communities, economic sectors, or national economies. Criminals and terrorist networks may be able to carry out their criminal and potentially destructive activities via a multitude of mechanisms and structures by transforming the proceeds of illicit activities into legitimate money.

The National Committee for Combating Money Laundering and the Financing of Terrorism and Illegal Organisations (NAMLCFTC) oversees the national risk assessment process. The UAE identifies and assesses the money laundering and terror financing risks it faces, in line with its obligations under the Financial Action Task Force Standards.

All financial entities and Designated Non-Financial Businesses or Professions (DNFBPs) have to develop and implement policies and procedures which create a risk-based approach framework to money laundering as well as perform the appropriate verification, name screening and other KYC checks to comply with the regulations. They must also register on anti-money laundering platform ‘goAML’ which is developed by the United Nations Office on Drugs and Crime (UNODC) to report and curb organised crimes.

As per article 2 of Federal Decree-law No. (20) of 2018 and Federal Law No. (7) of 2014 ,offences related to non-compliance with AML-CFT laws in the UAE will attract penalties up to AED 1 million.

Financial Institutions (FI)

Who are classified as FIs?

What is required from FIs?

1. In favour of a customer for amounts equal to or greater than AED 55,000 (or equivalent in any other currency).
2. Wire transfer equal to or exceeding AED 3500 (or equivalent in any other currency).
3. When there is ML/TF suspicion.
4. When there are doubts about veracity or adequacy of identification.

Designated Non-financial Businesses
and Professions (DNFBPs)

Who are classified as DNFBPs?

What is required from DNFBPs?

Precious metals and precious stones dealers who carry out single or multiple covered transactions that equal AED 55,000
Screening against Sanctions lists, PEP lists , Adverse media list
Verify and identify true beneficial owner and corroborating legitimacy of source of funds
Undertake risk based CDD measures when there is a suspicion of a crime
Undertake risk based CDD measures when there are doubts about veracity or adequacy of identification
Ongoing monitoring and Supervision of business relationship
MVTS / NPO is properly licensed or registered
Identify and report suspicious transactions to Finance Intelligence Unit (FIU)
Record keeping and maintenance of client data and transactions