Transportation of cash and remittances poses risks, hence combating money laundering and terrorism financing (CFT) is critical to protect the economy in particular. In order to reinforce this process, the government of the UAE implemented the Anti-Money Laundering UAE regulations and issued all detailed guidelines from the respective supervisory authorities. The guidelines prescribe key principles and best practices to identify financial crimes and reduce risks. This guide, specifically written for DNFBP, helps in understanding Anti-Money Laundering UAE laws.

Anti-Money Laundering (AML) Regulations in the UAE

AML Law UAE applies to financial institutions, banks, insurance companies, DNFBPs, and VASPs. DNFBPs include:

• A dealer in precious metals and stones
• Real estate agents and brokers
• Trust and company service providers
• Auditors, independent accountants
• Legal or judicial professionals (e.g. lawyers, notaries, judges)

As a result, all these entities have to comply with anti-money laundering UAE regulations on active levels to exercise financial integrity and hinder illegal activities.

Checklist of the Core AML Regulations in the UAE: Key Anti Money Laundering UAE Guidelines

The following is a checklist for the compliance of the DNFBPs with the UAE Anti-Money Laundering Law and all AML/CFT obligations under the UAE AML laws:

• Register on the goAML Portal.
• Designate a competent AML/CFT Compliance Officer responsible for compliance.
• Identify and assess your business’s exposure to ML/FT risks.
• Functioning guides and rules that conform to AML/CFT laws and Enterprise-Wide Risk Assessment (EWRA) make sure that your threat procedures are sound and that you are successful.
• Set up a clear Customer Due Diligence process.
• Deliver effective Targeted Financial Sanctions (TFS).
• Evaluate customer risk using all relevant ML/FT risk factors.
• Full Enhanced Due Diligence for high-risk customers.
• Keep a structured process to identify and report Suspicious Transactions and other relevant reports through the goAML Portal.
• Maintain AML/CFT records for a minimum five-year period

This proactive approach ensures compliance with UAE Anti-Money Laundering Law and strengthens your financial crime prevention framework.

Regulatory Framework

Anti Money Laundering UAE laws form the foundation of financial crime prevention in the Emirates. These include:

• Federal Decree-Law No. (20) of 2018 concerning Anti-Money Laundering, the Financing of Terrorism, and the Financing of Illegal Organizations. In order to further enhance its effectiveness this Law has recently been amended by Federal Decree-Law No. (26) of 2021.
• Cabinet Decision No. (10) of 2019, which provides for the Implementing Regulation for Federal Decree-Law No. (20) of 2018. Cabinet Resolution No. (24) of 2022 also updated it to enforce compliance.

This regulation lays down a strong legal infrastructure against financial crimes that comply with international Anti Money Laundering UAE standards.

Conclusion 

In summary, Anti-Money Laundering UAE regulations offer a robust framework for the prevention of financial crimes to guarantee nationwide economic security. The UAE’s robust legal and regulatory framework is reinforced by stringent compliance measures. 

Including AML/CFT obligations for DNFBPs and other entities underpins its commitment to maintaining a secure financial system and complying with global standards. These rules are crucial to stop money laundering, manage risk, and ensure a clear financial system.

Having said that, Contact Khairallah Advocates & Legal Consultants and benefit from our free 30-min legal consultation.

*Disclaimer: our blogs, law updates and FAQ’s are freely distributed for educational purposes and to showcase recent updates and regulations in the UAE’s framework.

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