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Anti-Money laundering regulations in UAE

21
Aug

Anti-Money Laundering Regulations in UAE

UAE Government has implemented an effective Anti-Money Laundering System to protect its financial sector from potential Money Laundering offenses. The Central Bank of the UAE has been among the first regulators in the region to address Anti-Money Laundering issues.

Combating money laundering is a major issue for any business operating in the UAE, and in an increasingly regulatory climate, it can often be a challenge for many companies to maintain a balance between complying with legal and regulatory requirements and that of providing the best service to their clients.  In conducting their business, companies must consider not only the risk of regulatory sanction and large fines, but also the potentially significant reputational damage to their businesses, if they fall foul of recent money laundering rules and regulations.

Anti-Money Laundering Policy

  • The central theme of any Anti-Money Laundering Policy is focused as “Know Your Customer”. Anti-Money Laundering The banks have to strictly follow in letter and spirit the instructions and guidelines emanating from time to time from the Central Bank of the UAE, which will become part of the Bank’s Operation Manual. These regulations & instructions shall apply in all domestic branches and subsidiaries branches
  • The banks should fully cooperate and appreciate the potential reputational damage whether intentional or unintentional that would be caused to the Bank and therefore will not tolerate any involvement in money laundering activity. To ensure full compliance with Anti-Money Laundering laws, regulation, rules and guidance, it should be Bank’s policy to continue relationship with customers or counter-parties, including other banks, whose conduct gives rise to serious concern of involvement in illegal activities.
  • The Bank should seek to terminate any relationship that gives the Bank reasonable cause to believe or suspect on-going involvement with illegal activities. Any such termination shall follow reporting of the suspicion to the appropriate legal regulatory authorities and thereafter shall be undertaken in consultation with the relevant authorities and in accordance with market practice, to avoid any risk for the Bank committing a tipping-off offence.
  • The Bank’s Compliance Officer shall have the overall responsibility at corporate level to ensure that the Bank adheres to all local regulatory policies and requirements. As per the requirement of UAE Central Bank, a Money Laundering Reporting Officer (MLRO) is appointed at the corporate level; additionally, each branch has a designated Money Laundering Reporting Officer to ensure compliance of the policies and procedures. Each Head of Group / Division is responsible to fully implement and comply with the Bank’s Anti-Money Laundering policy and other related local guidelines, regulations and laws.Now Banks in UAE can stop anti money laundering by using ascent AML Software
  • Ascent AML’s rule based surveillance engine monitors current transactional data, non-transactional data (KYC), and historical data for suspicious trading patterns. It covers a broad range of asset classes & transaction types like Banking transactions (ATM, Switch, POS etc.), Treasury/Trading transactions (Equities, Fixed Income, FX, Derivatives, Swaps, Commodities etc.).

Ascent AML comes with extensive library of analytical foundation & detection models which helps organization to be compliant with anti-money laundering (AML) regulations from AMLSCU – Central Bank UAE, SEBI, RBI, SEC, FRB, BSA, FinCEN, FATF, FSA, JMLSG, and MiFID.

A single, comprehensive and fully cross-referenced solution helps you quickly locate and associate links between people, businesses, assets, and locations through a variety of easy-to-understand subject summaries and broader detailed views.

Ascent is a niche software solution provider of powerful and flexible solutions in the area of Business Continuity Management, Risk Management and Financial Technology.

The company specializes in Consulting, Software Solutions and Training for Banking, Financial Services and Insurance, Government and various industries.