Businesses told to comply with anti-money laundering steps
FOUR CATEGORIES OF BUSINESSES MUST COMPLETE FORMALITIES BY MARCH 31
The UAE’s Ministry of Economy has extended the grace period until March 31 for certain business categories to be in full compliance with anti-money laundering and prevention of terrorism financing.
Businesses that fail to do so will face fines range from Dh50,000 to up to Dhl million and can be raised to Dh5 mil-lion based on the provisions of the law and according to the assessment of the Supreme Committee for Combating Money Laundering, and Financing of Terrorism and Illegal Organizations.
This applies to activities in four categories — brokers and real estate agents, dealers of precious metals and gemstones, auditors, and corporate service providers.
The ministry issued a list of 26 violations. Three actions will invite fines of Dhl million each.
These are for dealing with fake banks in all ways; opening or maintaining bank ac-counts with fake names or numbers without the names of their canters; and failure to take measures related to clients listed on international or domestic sanctions lists, prior to establishing or continuing a business relationship.
Steps to be taken
These businesses must first register with the Financial Intelligence Unit (goAML) and on the Committee for Commodities Subject to Import and Ex-port Control system (Automatic Reporting System for Sanctions Lists).
Following the registrations, they should adopt other measures related to the two systems in accordance with the provisions of the Decree-law, its implementing regulations and the relevant decisions.
“We call on all concerned companies to establish internal policies, procedures and controls to avoid money laundering risks in accordance with the measure set forth by the executive regulations of the law, which can be found on the official website of the Ministry of Economy,” Said Safeya Al Safi director of the Anti-Money Laundering Department, Ministry of Economy.
The Ministry called on the companies practicing the four categories of activities to enhance their awareness and knowledge on the risks of money laundering and keep pace with the government’s efforts in this regard.
Registration extended
The Ministry clarified that the grace period for registering on the two systems has been extended until March 31, 2021, and that the companies that fail to do so before this date will be subject to penalties, including suspension of the license and closure of the facility.
In addition, it underlined the significance of completing the post-registration procedures and measures to avoid the fines set by the Cabinet Resolution No. 16 of 2021.
AI Sail said: “The Department is committed to answering the inquiries of all stakeholders and helping the targeted establishments comply with the requirements of the law, via the Ministry’s call center number 800-1222.
Al Safi explained that the issuance of the violations and fines list supports the UAE’s efforts in combating money laundering crimes and financing of terrorism. It enhances the business sec-tor’s and non-financial professions’ compliance levels as de-fined by the provisions of the law and its implementing regulations, thereby contributing to raising the national economy’s ability to achieve healthy and sustainable growth. Furthermore, the measure reflects the UAE’s keenness, under the guidance of its wise leadership, to continuously develop Its economic legislation to enhance its competitiveness as a safe and stable global business destination. Al Safi also affirmed the Ministry of Economy’s commitment to strengthening partnerships with private sector companies and establishments that belong to the designated non-financial business and professions sector.
| No | Category according No to the executive Violation regulations | Violation | Value of the administrative fine |
| 1 | Dealing with suspicious banks | Dealing with unauthorized banks in any way whatsoever | Dh 1,000,000 |
| 2 | Opening bank account using an alias | Opening or maintaining bank accounts using alias, fictitious or fake names, or numbers, rather than holders’ names | Dh 1,000,000 |
| 3 | Implementing Security Council’s resolutions | Failure to take measures concerning customers included in international or local sanction lists before establishing business relationship | Dh 1,000,000 |
| 4 | Identify and reduce risks — High risk countries | Not taking enhanced due diligence measures to manage high risks. | Dh 2,000,000 |
| 5 | Establishing or continuing a business relationship or executing a business transaction | Not notifying the financial Information Unit of a suspicious transaction report when it is not possible to take due diligence measures towards a client before establishing or continuing a business relationship with him or carrying out a transaction for the benefit of the client or in his name. | Dh 2,000,000 |
| 6 | Response to the Financial Intelligence Unit (FIU) | Failure to respond to FIU’s requests for additional information regarding any reported suspicious transactions. | Dh 2,000,000 |
| 7 | Method of reporting suspicious transactions | Disclosing directly or indirectly to the customer or a third party, the process of, or intention to, report the customer due to suspicious about the nature of business relationship with the customer | Dh 2,000,000 |
| 8 | Relaying on third party | Failure to implement the measures identified by the National Committee for Combating Money Laundering in respect of customers from high risk countries | Dh 2,000,000 |
| 9 | Identification and reduction of risks | Not taking necessary measure to determine crime risks in the field of works | Dh 100,000 |
| 10 | Requirements related to new technologies | Failure to identify and evaluate risks that may arise In the field of work when a businessman develops the services he provides or undertakes new professional practices through his establishment. | Dh 100,000 |
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