AML Regulation Services

What is AML Regulation?

AML Regulation Services are designed to help your business in the UAE understand and adhere to the specific rules and guidelines aimed at preventing money laundering and the financing of terrorism. These services offer expert guidance and practical solutions to ensure you're not just ticking boxes, but truly building a robust compliance framework tailored to the UAE's legal landscape.

Do all UAE Businesses need to be AML Compliant?

The Anti-Money Laundering (AML) Regulations in the UAE, primarily based on Federal Decree-Law No. (20) of 2018 and its Implementing Regulation (Cabinet Decision No. 10 of 2019) apply to a broad range of entities to safeguard the financial system. These key categories include:

Financial Institutions

This is a wide-ranging category overseen primarily by the Central Bank of the UAE (CBUAE) and includes:

• Banks
• Money Exchange Houses
• Finance Companies
• Insurance Companies and Insurance Brokers
• Securities and Commodities Brokers (regulated by the Securities and Commodities Authority - SCA)
  
  

Designated Non-Financial Businesses and Professions (DNFBPs)

These sectors, supervised by the Ministry of Economy (MoE) and other relevant authorities, are recognized as potentially vulnerable to money laundering and terrorist financing:

• Dealers in precious metals and stones
• Real estate agents and brokers
• Trust and Corporate Service Providers
• Auditors and Independent Accountants
• Attorneys, notaries, and other legal professionals
  
  

Virtual Asset Service Providers (VASPs)

With the increasing prominence of virtual assets, these providers are subject to specific AML regulations. In Dubai, the Virtual Assets Regulatory Authority (VARA) plays a significant role in its oversight.

Entities subject to Securities and Commodities Authority (SCA) regulations, as outlined in decisions like SCA Board of Directors Decision No. 21 of 2019, which includes listed companies and other entities within the securities market.

• Comply with Federal Law No. (20) of 2018, Cabinet Decision No. (10) of 2019, and SCA Board of Directors Decision No. 21 of 2019.
• Implement internal policies and procedures for identifying and reporting suspicious transactions.
• File Suspicious Transactions Reports (STRs) and/or Suspicious Activity Reports (SARs) with the Financial Intelligence Unit (FIU) through the GoAML portal. Registration on the GoAML portal is mandatory.
• Retain all records and documents related to STRs and the results of all analyses performed.
• Identify and update risk assessments for crimes within their scope of work.
• Implement a risk-based approach (RBA) to identify and assess ML/FT risks.
• Monitor, supervise, and enforce compliance with AML/CFT Legislation.
  
  

Which are the Primary AML Regulatory Bodies for UAE businesses?

• Securities and Commodities Authority (SCA) Board of Directors Decision No. 21 of 2019: This decision outlines specific AML procedures for entities regulated by the SCA.  
• Central Bank of the UAE (CBUAE): The CBUAE also issues guidelines and regulations related to AML/CFT for financial institutions.  
• The Financial Intelligence Unit (FIU) is the major national institution in charge of receiving, evaluating, and disseminating financial information related to suspected money laundering, terrorism financing, and other illegal activities.

How do KYC/AML Providers help UAE Companies Meet Compliance?

A specialized KYC (Know Your Customer) and AML (Anti-Money Laundering) provider offers expertise and technological solutions to streamline the often complex process as follows:

• Know Your Customer Better: They help companies figure out who their customers are, checking their IDs and backgrounds, like a digital detective. This stops bad guys from hiding behind fake identities.
• Watch Out for Bad Money: They have systems that keep an eye on transactions to spot anything fishy, like large, sudden money moves that don't make sense. It's like a security guard for their money flow.
• Check Against Bad Guy Lists: They constantly check customers against lists of people and groups who are known for illegal activities or are under sanctions. This makes sure companies don't accidentally do business with them.
• Help Figure Out the Risks: They help companies understand how likely they are to run into money laundering problems and suggest ways to protect themselves better.
• Make Compliance Easier: Instead of doing everything by hand, they offer automated tools to handle all the checks and monitoring, saving time and reducing mistakes.
• Keep Good Records: They help companies keep track of all the important information and checks they've done, which is required by law.
• Stay Up-to-Date with Rules: They keep up with the latest money-laundering rules in the UAE and help companies adjust so they don't get in trouble.

Essentially, these providers alleviate the burden of adhering to complicated financial regulations, allowing UAE firms to focus on what they do best while being on the right side of the law.

What should you look for in an AML Regulation Service Provider?

• Intricate and current understanding of the UAE's AML framework: Including Federal Decree-Law No. (20) of 2018, its implementing regulations, and sector-specific guidance from the Central Bank, SCA, and the Ministry of Economy.
• Strong track record of successfully assisting businesses like yours right here in the UAE, indicating local market acumen and experience.
• Comprehensive and tailored solutions: Offering services such as risk assessments, bespoke policy development, robust CDD/EDD frameworks, transaction monitoring solutions, STR guidance, and engaging employee training.
• Understanding of international AML standards: To ensure preparedness for the global stage.
• Leveraging cutting-edge technology: To streamline KYC, screening, and transaction monitoring processes.
• Clear communication and actionable reporting: Ensuring you understand the process and results.
• Ongoing support: To adapt to evolving regulations.
  
  

Why Choose Reyson Badger for AML Regulation Services?

Navigating UAE AML laws requires expert guidance. At Reyson Badger, we offer:

• Deep awareness of UAE rules, including all major laws and directives.
• Proven success in the local market: Helping businesses like yours comply effectively.
• Tailored, comprehensive solutions: From risk assessment to training, designed for your needs.
• Future-focused approach: Keeping you ahead of evolving global standards.
• Technology-enabled efficiency: Streamlining your compliance processes.
• Clear, actionable advice: Making complex regulations understandable.
• Dedicated partnership: We're invested in your long-term compliance success.

Ensure robust AML compliance for your UAE business. Contact Reyson Badger today for a Free consultation.

FAQs

Does the JFSC AML Handbook have any Implications for Businesses Operating in or with Jersey from the UAE?

If your UAE-based business operates in or has dealings with Jersey (a self-governing island in the Channel Islands, known as a financial center) then yes, the JFSC (Jersey Financial Services Commission) AML Handbook has implications for you.

Think of it this way: Jersey has its own set of rules to prevent money laundering, just like the UAE. If you're doing business there, you need to play by their rules, too.

Here's why it matters:

• Their Rules, Your Responsibility: If you have clients, subsidiaries, or any financial activities in Jersey, you'll need to comply with the JFSC AML Handbook.
• Due Diligence is Key: You'll likely need to conduct due diligence on your Jersey-related activities and potentially your Jersey-based customers, following their guidelines.
• Reporting Obligations: If you spot anything suspicious related to your Jersey operations, you'll need to understand their reporting requirements.

In short, if Jersey is part of your business landscape, understanding and adhering to the JFSC AML Handbook isn't optional – it's a must to operate smoothly and legally.

Why International AML Standards Matter to Your UAE Business?

Even while legislation like OFAC and FCA may appear distant, the worldwide fight against money laundering has an impact right here in the UAE. Think of it this way:

As a responsible global player, the UAE follows international best practices set by bodies like FATF. These are the same standards that influence regulations in places like the US and the UK.

Here's why this matters to you:

• Global Trust: International partners and banks expect UAE businesses to have strong AML controls, making it easier to work together.
• Smooth Transactions: Aligning with global standards helps ensure smoother international payments and access to global markets.
• Protecting Our Reputation: By following these norms, we collectively maintain the UAE's standing as a trusted place to do business.
• Staying Ahead: As global rules evolve, the UAE adapts, meaning your business needs to be aware of these international trends to stay compliant.
  
  

How does the UAE anti-money laundering law 2021 impact businesses? 

The UAE anti-money laundering law 2021 represents a significant step in strengthening the country's AML framework. This law introduces stricter requirements around beneficial ownership transparency, enhanced due diligence for high-risk customers, and more stringent penalties for non-compliance. Understanding the nuances of this law is crucial for all businesses operating in the UAE to ensure they are meeting the latest legal obligations.

What are the AML/CFT Regulations in the UAE?