Ensuring AML Compliance in the UAE: A Deep Dive into Regulations

Raghunath T, Director

image

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

    Schedule a Consultation




    In the heart of a global business hub, where economic vitality converges with regulatory challenges, the UAE grapples with the imperative of safeguarding its financial system against criminal exploitation. Marked by its presence on the Financial Action Task Force’s (FATF) increased monitoring list in 2022, the UAE has become a focal point in the battle against money laundering and counter-terrorist financing deficiencies.

    Join us as we navigate the regulatory currents, exploring the landscape of AML compliance in the UAE and uncovering the strategies employed to ensure financial integrity in this dynamic corner of the world.

    THE CENTRAL BANK OF THE UAE

    The Central Bank of the UAE (CBUAE) serves as the primary financial regulator in the country, overseeing Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) supervision through its specialized department, the Anti-Money Laundering and Combatting the Financing of Terrorism Supervision Department (AMLD). AMLD focuses on regulatory compliance and collaborates with law enforcement authorities and the UAE’s Financial Intelligence Unit (FIU).

    The AMLD operates with three main objectives:

    • Evaluate licensed financial institutions (LFIs) in the UAE.
    • Ensure adherence to the regulatory and legal framework for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) in the UAE.
    • Identify AML/CFT threats, emerging risks, and weaknesses in the UAE’s financial system.

    AML REGULATIONS IN THE UAE

    The principal components of the UAE’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) legislation are outlined in two key documents:

    • Legislative measures, namely Federal Decree-Law No. (20) of 2018 addressing Anti-Money Laundering, Combating the Financing of Terrorism, and Financing of Illegal Organizations.
    • The regulatory framework includes Cabinet Decision No. (10) of 2019, outlining the Implementing Regulation for Decree-Law No. (20) of 2018 on Anti-Money Laundering, Combating the Financing of Terrorism, and Illegal Organizations.

    Referred to as the AML/CFT Law and the AML/CFT Decision respectively, these articles collectively mandate that businesses in the UAE establish and execute a risk-based AML/CFT program.

    This program encompasses elements such as Know Your Customer (KYC) checks, risk screening solutions, reporting and record-keeping processes, and effective compliance governance. Additionally, the regulations stipulate the appointment of an AML Compliance Officer responsible for overseeing the compliance solution within their organization.

    Complying with UAE AML Regulations: Key Steps

    Following FATF guidance, firms in the UAE are required to adopt a risk-based AML/CFT approach, involving the following measures:

    Customer Identification:

    • Conduct customer due diligence (CDD) to establish and verify customer identity.
    • Determine ultimate beneficial ownership (UBO) to prevent the use of shell entities for identity concealment.

     Enhanced Due Diligence (EDD):

    • Implement EDD for customers deemed high AML risk, involving more thorough scrutiny, possibly requiring official document copies or third-party audits. 

    Transaction Screening:

    • Continuously screen customer transactions for AML risk, particularly those involving high-risk counterparts or jurisdictions.

    Sanctions and Watchlists:

    • Mitigate sanctions risk by implementing effective screening for designated customers on international sanctions lists. Identify politically exposed persons (PEPs) through screening against PEP lists, given the heightened risk in the UAE.

    HLB HAMT For Your AML/CFT Requirements

    Ensuring AML compliance in the UAE requires a multifaceted approach involving robust regulations, effective enforcement, and a commitment to ongoing education and technological advancements.

    HLB HAMT, with its team of AML experts, stands ready to assist you in ensuring robust compliance with the UAE’s AML regulations. From comprehensive risk assessments to implementing effective AML/CFT solutions, our experts are equipped to guide your organization through the complexities of AML compliance.

    Contact HLB HAMT today for expert assistance!

     

     

    Would you like to rate us on Google?         

     

    Varun R Chandra
    Varun R Chandra
    07:38 25 Apr 21
    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
    Giuseppe Assi
    Giuseppe Assi
    06:20 31 Jan 21
    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
    Mohamed Sheriff
    Mohamed Sheriff
    16:16 28 Jun 20
    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
    218141 JOSEPH THOMAS
    218141 JOSEPH THOMAS
    16:20 23 Jun 20
    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
    PMI
    PMI
    07:14 23 Jun 20
    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
    RAVI CHOKSI
    RAVI CHOKSI
    08:28 21 Jun 20
    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
    Maharajan Subramaniam
    Maharajan Subramaniam
    18:17 06 Jun 20
    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
    Mohammed L
    Mohammed L
    08:07 05 Jun 20
    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
    ROY ROSHAN VIVIAN
    ROY ROSHAN VIVIAN
    06:32 04 Jun 20
    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
    Basil Daniells
    Basil Daniells
    05:55 03 Jun 20
    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
    Amar Kashyap
    Amar Kashyap
    19:28 02 Jun 20
    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
    Radz de Jesus
    Radz de Jesus
    16:03 02 Jun 20
    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
    Next Reviews
    js_loader

    Get in touch
    x
    x

    Share to:

    Copy link:

    Copied to clipboard Copy