Federal Decree No. 20 of 2018 on Anti-Money Laundering and Countering the Financing of Terrorism was issued to establish a legal framework for complying with international standards on anti-money laundering and countering the financing of terrorism. Primarily, it describes the legal requirements the government must observe to comply with international standards. In addition, it capitalizes on the legal and institutional framework's efficacy in implementing procedures and interventions that help anti-money laundering efforts and fight terrorism and criminal organization financing.
The UAE conducted its first national risk assessment on money laundering and terrorist funding in 2018, with broad participation from all relevant authorities. According to the assessment, money laundering and terrorist funding are high risks in various regions. FATF (Financial Action Task Force) reviewed the UAE in compliance with international standards in 2019 and discovered a range of areas that would benefit from a national structure to tackle money laundering and terrorist funding.
In line with the UAE’s interest in and commitment to enforcing AML/CFT legislation, the ‘Higher Committee Overseeing National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism’ was formed and headed by His Highness Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation. This strategy will implement 12 national strategic goals from 2020-to 2023.
The Governor of the Central Bank chairs the NAMLCFTC, which was founded in the year 2000. It controls the country's strategies and efforts to tackle money laundering and terrorist financing.
It is an obligation to file an annual AML/CTF risk assessment report to the Ministry of Economy (MoE) for all Designated non-financial businesses and Professionals.
In accordance with Article 44.4 1 of "Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulations of Decree-Law No. (20) of 2018, on Countering Money Laundering and Terrorism Financing and Combatting Illegal Organizations", all DNFBPs must provide information as discussed below. Information requests such as this are part of the Ministry of Economy's efforts to modify its activities as a Supervisory Authority of Designated Non-Financial Businesses or Professions in accordance with a risk-based approach. Therefore, the Ministry of Economy will seek such information annually moving forward.
It consists of internal and external information about the business and its activities to assess how it complies with AML laws and regulations, based on which the authorities give entities a risk score. Providing wrong information or lack of compliance is taken seriously and will likely be penalized by the authorities. The information that needs to be delivered can be divided into the following parts:
This section contains mainly the following type of information:
This section deals with how the entity is implementing AML-CTF controls and procedures and how are they documented, including:
It includes the details of the person who prepares the report and has reviewed it. Furthermore, as mentioned above, it is a yearly obligation. Therefore it is essential to ensure all Regulated reporting entities within UAE implement proper and robust controls and measures necessary to develop and maintain a sound compliance system.
| Auditors and Accountants | 07 September 2021, 00:09 UAE time |
| Real Estate Brokers | 23 August 2021 at 11:59 pm |
| Dealers of Precious metals and Stones | 16 August 2021 |
All goAML registered entities will receive filing notification and details on your registered email.
The Ministry of Economy (MoE) announced the launch of an awareness and monitoring campaign to enable registered Designated Non-Financial Business and Professions (DNFBPs) in the UAE to register with the Financial Intelligent Unit (goAML) system. Similarly, it encourages targeted groups to write in the design of the Committee on Goods Subject to Import and Export Control (Automatic Reporting System for Sanctions Lists) and to take action in relation to both the provisions of Federal Law No 20 of 2018 on the fight against money laundering crimes and the funding of terrorism and criminal organizations and the legislation and related decision-making rules and regulations.
According to the Ministry of Economy, the last date to register in the goAML system was April 30, 2021. However, registrations are still being accepted by the MoE. Further Anti-Money Laundering (AML) violators may face administrative fines ranging from AED 50,000 to 1,000,000.
The goAML system is an integrated digital platform through which financial institutions, designated non-financial businesses, occupations, and the relevant authorities can send Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs). The Financial Intelligence Unit uses it to collect, evaluate and distribute suspicious transaction information rapidly and effectively.
What is Committee for Commodities Subject to Import and Export Control (Automatic Reporting System for Sanctions Lists)?
By registering in this system, financial institutions and designated non-financial undertakings and professions will be able to receive timely updates when individuals are added or removed to the local or UN list of targeted financial sanctions. In addition, the system automatically sends e-mail notifications to all registered establishments and authorities.
A DNFBP is anyone who engages in the following trade or business activities:
According to the Ministry of Economy, the targeted establishment must take three key measures to protect its enterprises against money laundering threats. As follows, the three steps are:
The Ministry of Economy (MoE) has stated that it will organize field inspection campaigns to track the scope of the dedication of the target establishments to the registration and implementation of relevant measures in both systems. Such initiatives will also help raise awareness of federal law requirements and punishments for violations and ensure they are committed to its provisions.
By including the Financial Action Task Force (FATF) standards in the updated guidance, which came into effect on the 1st of August-2022, LFIs will understand risks better and ensure they are meeting their statutory obligations in terms of Anti-Money laundering and counter-terrorism financing.
According to the newly issued guidance some of the key preventive measures that should be implemented by LFIs to mitigate the money laundering and the financing of terrorism risks relating to payments include, but not limited to, the following:
*Note: These preventive measures should be integrated into an LFI’s AML/CFT compliance program and supported with governance and training*
The goAML system and the Automatic Reporting System for Sanctions Lists are two of the newest anti-money laundering programs introduced by the Ministry of Economy (MOE). According to the MOE, AMCA will help you register in the four classifications : (1) Brokers and Real Estate Agents, (2) Dealers in Precious Metals and Precious Stones, (3) Auditors, and (4) Corporate Service Providers.
