Money laundering refers to the act of laundering money to make it appear as legal funds. Anti-money laundering specialists are indispensable in helping businesses manage AML compliance issues. These professionals understand the legal requirements of AML and specific tactics that can be used to create compliance measures. The anti-money laundering specialist certification is vital for the UAE business to prevent and report the occurrence of AML/CFT in its operations.
The United Arab Emirates (UAE) is an international business hub; therefore, it is in the spotlight of money laundering. Subsequently, the UAE has incorporated strict AML measures.
Also read: UAE AML Regulations
Recent Developments in UAE’s AML Measures
The following are recent measures effected to combat money laundering:
- Increased Fines and Asset Confiscations: Recent efforts by the UAE to counter money laundering have led to significant increases in fines and asset confiscations. In the first quarter of 2023, fines exceeded AED 115 million, compared to AED 76 million in the previous year. During this period, 161 fines were issued to 76 entities, and assets worth AED 925 million were frozen between November 2022 and February 2023.
- Robust AML/CFT Measures: The UAE’s growing economy necessitates robust AML/CFT measures across both public and private sectors. Increased enforcement and heightened awareness of financial crimes have resulted in a responsive system. UAE law enforcement agencies have actively participated in international investigations and arrests ranked 5th number worldwide.
- STRs and SARs: The Financial Intelligence Unit has received a substantial increase in suspicious transaction reports (STRs) and suspicious activity reports (SARs) from financial institutions and businesses. Changes in anti-money laundering legislation, particularly concerning virtual assets, have also been implemented.
- FATF Grey List: In the last year, the UAE put on the Financial Action Task Force or the FATF ‘grey list,’ thereby inching up its efforts. The director general of the country’s Executive Office for AML/CFT with the cooperation of the FATF discussed the key achievements. The economy of the UAE has been improving, it is essential to instill proper implementation of AML/CFT procedures all over the UAE and in the private sphere. The enforcement has also enhanced over the years and the awareness of financial crimes has dawned, showing that there is a responsive system.
- Inspections and Fines: The UAE Central Bank and the Ministry of Economy have been involved in inspections and have been this year fining businesses to enforce AML policies. The UAE entered into MLATs and cooperated with other countries or jurisdictions to prevent and prosecute financial crimes.
- Association of Certified Anti-Money Laundering Specialists: November is set to witness the Association of Certified Anti-Money Laundering Specialists hosting a conference in Dubai where regulators and professionals in the sector will share knowledge and practice as well as deliberate on proven strategies to contain financial criminals.
Managing the Process for Terrorism Financing and Money Laundering
This process involves three stages:
- Placement: – Regulating the customers and their relations with other aspects of the economy; Illegally infusing the monies into the system.
- Layering: – complicated negotiations when it is mandatory to know the source of the money and who is the recipient
Farhat & Co – Leading Anti-money Laundering Specialists in UAE
Anti-money laundering specialists refer to experts who have the qualifications and expertise to ensure that organizations comply with the anti-money laundering legal requirements. Anti-money laundering specialists are professionals well-versed with the AML laws and regulations on the subject. Farahat & Co.’s seasoned AML team comprises of, compliance advisors, business financial analysts, and consultants, among others, to provide quality solutions to AML services.
- AML/CFT Procedures, Policy & Documentation: Anti-money laundering specialists are compliant and built to be easily implementable scalable business compliance solutions for AML/CFT, that encompass policies, procedures, guidelines, and best practices. The documentation means that AML/CFT compliance can be worked for businesses with as much ease and efficiency as possible.
- In-house AML Compliance Department Setup: Anti-money laundering specialists help in setting up a structure of the AML compliance department specific to the problem of money laundering and terrorism financing. Such a structure helps keep businesses adequately prepared to address the UAE’s AML/CFT standards.
- AML Training: Anti-money laundering specialists offer building-training services to the executives and all the employees where they learn the AML laws, KYC, screening and risk profiling, the CDD and EDD, and even the STRs. Through this training, companies are guaranteed to be following the laws of UAE AML regulations.
- AML Software Selection: It is therefore important to make the right selection when sourcing for a given AML software. Anti-money laundering specialists’ solutions analysis enables companies to select the appropriate cost-effective software for Transaction Monitoring and Customer Screening for optimized AML operations. Farhat & Co offers help to business organizations in the development of this important report.
- AML/CFT Health Check: Anti-money laundering specialists offer their clients AML/CFT awareness plant health checks; this will provide them with a view of their preparedness. This assessment helps one see areas that require urgent attention and change to meet the set standards.
- Business Risk Assessment: Anti-money laundering specialists conduct Whole Business and Financial Institution AML Assessments by the UAE regulation for DNFBPs and FIs.
- Regulatory Reporting Managing reporting requirements is customary in AML procedures. Anti-money laundering specialists make sure that such requirements are being complied with; thereby, making sure that businesses are not subjected to fines as well as guaranteeing their sound compliance status.
- Managed KYC and Customer Due Diligence Services: Anti-money laundering specialists are professionally managed KYC and Customer Due Diligence (CDD) services for businesses to maintain AML compliance inexpensively. They are involved in matters such as easy conveyance of the different levels of customers and their monitoring hence improving the compliance of such services.
Seek the Expert Services of Top AML Specialists in the UAE
To protect the economy and maintain global competitiveness, businesses need to enforce effective measures against money laundering. Thus, it is advised for businesses to seek the expert services of trusted AML consultants in UAE to effectively combat anti-money laundering and ensure compliance.
Farhat & Co. is a reputable AML specialist, committed to providing comprehensive AML consulting services, helping businesses prevent and mitigate the effects of financial crimes.
FAQs
What Is Money Laundering?
Money laundering is one of the processes of hiding and eliminating detectable links with the alleged criminal source of funds. It typically involves three stages: placement, layering, and integration.
What Are the Reasons for Having Aml Compliance in UAE?
Being a financial city, the UAE is prone to such malpractices as money laundering and financing of terrorism. This way, AML compliance contributes to the protection of the economy, compliance with the norms of the international financial system, and prevents the imposition of severe penalties.
What Services Do Anti-money Laundering Specialists Provide About the AML?
Anti-money laundering specialists provide AML consulting services regarding documentation of AML/CFT policies, establishing an in-house compliance department, training in AML, and selection of software together with risk assessments, reporting to the regulators, and more KYC/CDD services.
What Impact Does the FATF Grey List Have on the UAE?
Proposing the VAT with the FATF, being on the grey list proves the need for better AML measures. Entry into the UAE has put pressure to try to meet the sources of the global standard and enhance the nation’s AML/CFT model.
What Is the Anti-money Laundering Specialist’s Role in AML Software Selection?
Anti-money laundering specialists advise companies on the selection of affordable and appropriate AML software for the monitoring of transactions, clients, and all other aspects of AML processes.
Why Is There the Need to Have Managed KYC and CDD Services?
Outsourcing of the management of KYC and CDD services significantly speeds up the process of customer identification and evaluation which also helps to effectively carry out the AML regulation, and at the same time, it is cost-effective and efficient.