AML Compliance in the UAE
Anti-Money Laundering is now the norm for businesses operating in global financial centers like the UAE. With its location and economy booming the UAE has put in place strict measures to prevent financial crimes and to be in line with international standards and to protect the country’s economy. We look into below the key aspects of AML compliance in the UAE, covering regulation and practical application into future developments.
Our Consulting Services for UAE Anti-Money Laundering Law
We develop flexible and customized AML/CFT compliance frameworks to suit your business needs. These include strong policies, procedures and best practices to ensure compliance with UAE AML laws.
Our consulting services ensure the AML compliance departments can keep up with the dynamic challenges of AML/CFT and be resilient to money laundering in your organization.
We offer training in key AML subjects such as UAE laws, KYC, screening, risk profiling, CDD, EDD and STR filing so your team will be compliant and proactive.
We help businesses choose low cost AML software that supports transaction monitoring, customer screening and compliance with all regulations while streamlining activities and minimizing risks.
We help DNFBPs and Financial Institutions prepare and file the annual AML/CFT Risk Assessment Report as required by the UAE Ministry of Economy.
This service checks your organization’s compliance to AML/CFT guidelines and identifies which areas need improvement.
We conduct AML Business Risk Assessments (BRA) to help DNFBPs and Financial Institutions identify and mitigate financial crime risks.
We help businesses meet UAE’s regulatory reporting requirements, ensuring compliance with government requirements for transparency and accountability.
Our managed services provide low cost solutions for KYC and CDD to ensure AML compliance while minimizing your compliance costs.
1. AML in the UAE
The financial hub and trading center that makes UAE prone to money laundering and terrorist financing needs to have effective measures to combat it. The country has a strong establishment of anti-money laundering and counter-terrorist financing framework.
Why AML Matters
AML practices protect financial institutions from being used for criminal activities. Non-compliance to such regulations can result to financial, reputational and legal consequences. Major AML Institutions in the UAE UAE Central Bank- It monitors compliance within the banks and financial markets.
Dubai Financial Services Authority (DFSA):
Dubai International Financial Centre (DIFC) Executive Office for AML/CFT- Aligns Countrywide Anti-money laundering efforts
What is Money Laundering?
Money laundering is the process of disguising illegal proceeds so that they appear to be legitimate. The final objective is to introduce illegal money into the legitimate economy without detection.
Stages of Money Laundering
Placement
Introduction of illegal funds into the financial system
Layering
Changeling funds through complicated financial transactions to disguise their source
Integration
Introduction of laundered funds into the legitimate economy through investments or big purchases
Regulations and Guidelines in the UAE
The UAE has implemented laws to combat money laundering in line with FATF (Financial Action Task Force) recommendations.
Federal Decree-Law No. 20 of 2018
This law establishes the UAE’s legal framework to combat money laundering and terrorist financing.
Money Laundering Activities: Including transfer, concealment or possession of illegal funds.
Non-compliance Negligence: Businesses that do not institute AML measures.
