AML Compliance Services in Dubai, UAE | Anti Money Laundering
Anti-Money Laundering Laws and Regulations
Anti-money laundering legislation compliance is mandatory in the United Arab Emirates for organizations that are at risk. UAE government, with the amendment of previous anti-money laundering (AML) regulations through Federal Decree (No 20) of 2018 on Anti-Money Laundering, has taken effective steps in combating financial crime occurring in the country.
Farahat & Co., the leading anti-money laundering specialist, provides end-to-end anti-money laundering (AML) solutions that meet the compliance obligations of business organizations operating in the UAE.
In recent years, AML penalties and AML audits have steadily increased. Protect your company from regulatory penalties through our comprehensive AML solutions!
Companies We’ve Assisted With AML Compliance in UAE Who Are Affected by the Legislation Are As Follows:
Designated Non-Financial Businesses & Professions (DNFBPs)
- Real estate agents and brokers: When they are concluding operations for customers’ benefit concerning the purchase and/or sale of property and real estate
- Notaries, law firms, and all other independent advocates and professionals: When preparing, executing, or conducting financial transactions for customers concerning purchasing and/or sale of property and real estate; the management of funds that were owned by clients; the management of savings accounts, securities accounts, and bank accounts; organization of contributions for management, operation, or establishment of companies; selling and/or buying commercial legal entities; and creation, management or operation of legal arrangements or legal persons.
- Dealers in precious stones and precious metals: In carrying out monetary transactions that appear equal or interrelated to more than Dhs55,000.
- Providers of trusts and corporate services: Upon executing or performing transactions on behalf of clients concerning certain activities such as acting as agents in the establishment or creation of legal persons; working to serve as secretary, director, or partner of a business; providing a work address, registered office, administrative address, or correspondence address of a legal arrangement or legal person; and equipping or working with another person in actin as the nominal shareholder in the favor of another legal person
Financial Institutions
(Business organizations that provide the activities listed below)
- Credit facilities for different kinds
- Receiving deposits and all other funds which may be paid by consumers, including deposits according to the Islamic Sharia law
- Cash brokerage services
- Money transfer services and currency exchange
- Financial transactions in securities and financial leasing
- Virtual banking services
- Stored value services and electronic payments for digital cash and retail
- Management and issuance of means of payment, obligations, or guarantees
- Operating, managing, investing, or trading funds, futures contracts, option contracts, and any other negotiable financial instruments
- Managing portfolios and funds of different kinds
- Participating in the issuance of securities and provision of financial services about the issues
- Preparation and marketing of financial activities
How Our Experts Will Help You With AML Compliance
As AML laws in the country are becoming stringent, more businesses are seeking our seasoned AML professionals’ guidance and advisory with AML compliance, which involves the following:
The internal AML program of a company has to be overseen by an appointed compliance officer or money laundering reporting officer. The compliance offer will have sufficient authority and has to have the necessary expertise in carrying out the role effectively for an organization. A compliance officer also has to have extensive industry experience or experience within the financial sector, specifically AML compliance, and internal or legal risk audits. The appropriate certification is also a must. Our team providing AML solutions is approved by the major regulators in UAE. We also provide firms that are affected by AML regulations select a compliance officer who’ll be responsible for reporting suspicious activities.
Our AML professionals help DNFBPs and financial institutions identify and asses their crime risks concerning the nature and size of their respective organizations. This includes documenting the risk assessment operations, making them available when requested by the regulatory authorities, and keeping them updated on an ongoing basis; as well as considering relevant risk factors e.g., countries, geographic areas, customers, and services, delivery channels, transactions, and products before determining levels of overall risk, including appropriate levels of mitigation required.
The firm helps business organizations in the UAE develop internal controls commensurate with the size and nature of their businesses with the approval of senior management to help manage risk identified and monitor the implementation of the policies, procedures, and controls.
Apart from being mandatory, this is to enhance the management of high risks upon their identification. Our team carries out, on behalf of a company, the acquisition of information and investigation of information about Beneficial Owner and Customer identity; updating customer due diligence (CDD) information of Beneficial Owner and Customer more systematically; taking reasonable measures in identifying the source of funds of Beneficial Owner and Customer, and obtaining approval of senior management in commencing a business relationship with company clients or customers.
Appointment of a Compliance Officer
The internal AML program of a company has to be overseen by an appointed compliance officer or money laundering reporting officer. The compliance offer will have sufficient authority and has to have the necessary expertise in carrying out the role effectively for an organization. A compliance officer also has to have extensive industry experience or experience within the financial sector, specifically AML compliance, and internal or legal risk audits. The appropriate certification is also a must. Our team providing AML solutions is approved by the major regulators in UAE. We also provide firms that are affected by AML regulations select a compliance officer who’ll be responsible for reporting suspicious activities.
Identifying, Assessing, and Understanding Crime Risks
Our AML professionals help DNFBPs and financial institutions identify and asses their crime risks concerning the nature and size of their respective organizations. This includes documenting the risk assessment operations, making them available when requested by the regulatory authorities, and keeping them updated on an ongoing basis; as well as considering relevant risk factors e.g., countries, geographic areas, customers, and services, delivery channels, transactions, and products before determining levels of overall risk, including appropriate levels of mitigation required.
Development of Internal Policies, Procedures, and Controls
The firm helps business organizations in the UAE develop internal controls commensurate with the size and nature of their businesses with the approval of senior management to help manage risk identified and monitor the implementation of the policies, procedures, and controls.
Application of CDD Measures
Apart from being mandatory, this is to enhance the management of high risks upon their identification. Our team carries out, on behalf of a company, the acquisition of information and investigation of information about Beneficial Owner and Customer identity; updating customer due diligence (CDD) information of Beneficial Owner and Customer more systematically; taking reasonable measures in identifying the source of funds of Beneficial Owner and Customer, and obtaining approval of senior management in commencing a business relationship with company clients or customers.
To discuss with our AML team how we can help ensure the full compliance of your business with relevant AML regulations, call us today!
Frequently Asked Questions (FAQ’S) About AML
What is the Anti-Money Laundering (AML) law in the UAE?
The UAE Anti-Money Laundering law is Federal Decree-Law No. 20 of 2018, which aims to combat money laundering, terrorist financing, and illegal financial activities by imposing compliance obligations on businesses and professionals.
Who needs to comply with AML regulations in the UAE?
AML compliance applies to financial institutions and DNFBPs (Designated Non-Financial Businesses and Professions), including real estate brokers, law firms, auditors, accountants, dealers in precious metals and stones, and corporate service providers.
What are DNFBPs under UAE AML law?
DNFBPs are non-financial businesses and professions that are at higher risk of money laundering. This includes lawyers, accountants, real estate agents, and dealers in precious metals and gemstones.
What is customer due diligence (CDD) in UAE AML compliance?
Customer due diligence (CDD) is the process of verifying a client’s identity, understanding the nature of their business, and assessing the risk of money laundering or terrorist financing.
What is the role of the UAE Financial Intelligence Unit (FIU)?
The UAE FIU receives, analyzes, and investigates suspicious transaction reports (STRs) submitted by businesses. It acts as the main authority for AML-related reporting.
What are the penalties for non-compliance with AML law in the UAE?
Penalties include administrative fines, suspension of business licenses, blacklisting, and even imprisonment for severe violations. Fines can reach up to AED 5 million depending on the case.
How can companies file a Suspicious Transaction Report (STR) in the UAE?
Companies must file STRs through the UAE’s goAML system managed by the FIU. Filing is mandatory when suspicious activities are detected.
What is the difference between AML and CTF in the UAE?
AML (Anti-Money Laundering) focuses on preventing illegal funds from entering the financial system, while CTF (Counter-Terrorist Financing) targets preventing funds from being used to support terrorism.
Do small businesses in the UAE need to comply with AML regulations?
Yes. Even small businesses that fall under DNFBPs must comply with AML requirements, including record-keeping, CDD, and reporting suspicious transactions.
How can businesses in the UAE ensure AML compliance?
Businesses can ensure compliance by registering with the goAML system, conducting regular risk assessments, training staff, applying KYC/CDD processes, and maintaining proper record-keeping.
