BMS Auditing provides expert AML compliance services in the UAE, helping businesses comply with anti-money laundering laws, reduce risks, and protect their reputations. Please feel free to contact us for a free consultation.
The United Arab Emirates is a global business hub and a leading financial center that maintains a strict AML compliance policy to effectively curb illegal financial dealings. The UAE has a comprehensive regulatory framework for preventing and timely reporting of money laundering and terror financing, aligning with global standards. These regulations apply to various sectors, such as banking, insurance, asset and wealth management, fintech, lending, and cryptocurrency, and ensure compliance with global anti-money laundering measures.
Let’s walk you through the UAE anti-money laundering regulations, their importance, AML compliance, and the steps companies can take to stay compliant with set AML rules and regulations.
Overview of AML in UAE
AML regulations focus on combating money laundering and terrorism financing while safeguarding the UAE economy and helping to mitigate risk.
Key AML Framework components:
- Federal Decree-Law No. (20) of 2018 on AML-CFT: This is the main legislation governing AML in the UAE, focusing on AML obligations for business and financial institutions across the UAE.
- Cabinet Decision No. (10) of 2019: This decision provides executive guidelines for implementing AML laws.
- Central Bank of UAE Guidelines: These legislations provide guidelines for meeting AML regulations ensuring compliance in the UAE.
Scope of AML Law in UAE
The UAE’s Anti Money Laundering applies to various entities such as:-
- Financial Institutions like banks and insurance companies
- Designated Non-financial Business and Professions (DNFBPs) consist of
- Precious metals and Dealer's stone
- Real estate agents and brokers
- Trust and corporate tax providers
- Auditors and independent accountants
- Lawyers, notaries, and legal professionals
- Virtual Asset Service providers(VASPs)
Importance of AML compliance in Business
Let us hop onto the significance of AML compliance. Adherence to AML compliance in the UAE is necessary to prevent financial crimes.
- Protect Financial System: AML regulations help protect the company’s financial system, assisting businesses in monitoring and identifying illegal activities.
- Protect business reputation: AML regulation helps to safeguard your company from reputational risk, penalties, and license suspension.
- Ensure regulatory and legal compliance: AML regulations ensure business integrity and compliance protecting businesses from penalties, fines, and legal action.
- Maintain UAE as a safe global landscape: AML regulations help to protect UAE as the best destination for the worldwide business hub.
- Mitigate unlawful risk: AML regulations help businesses to safeguard from risk from unlawful activities while damaging the reputation and credibility of the business.
AML law aims to detect and report suspected money laundering activities. These regulations help businesses to pinpoint, verify, and alert regulatory authorities about unlawful activities.
Key Obligation for UAE’s AML Compliance
Business needs to adhere to the following AML obligations to ensure compliance, such as:
- Customer Due Diligence(CDD): Before initiating any business relationship, it is important to verify the identity of clients and check any risk associated with them to prevent money laundering.
- Keeping Records: Maintain client identification records and other transactions for at least five years while ensuring all records can be retrieved for audits.
- Suspicious Transaction Reporting(STR): AML regulations help to identify, and report to UAE Financial Intelligence Unit and take action to prevent illegal activities.
- Employee Education and Training: Conduct periodic training and education on AML regulations, identify any suspicious activities, and study prevention and reporting methods.
- Internal Control and Risk Management: Implement internal control measures to monitor and reduce money laundering risk.
- Periodic Audit: Monitoring regular audit practices helps to ensure compliance and prevent money laundering.
Pillars of Effective Anti-Money Laundering Program
Anti-money laundering involves various steps. Let us discuss the points.
- Know-Your Customer (KYC): KYC must be done regularly to update the client's data and it helps to ensure they comply with the latest regulations and fall into risk.
- Risk-based AML policies: Businesses should develop policies to identify risk, monitor, and report suspicious activity.
- Monitoring suspicious activities: Businesses should develop strategies to continuously monitor customer activities for the prevention of money laundering. So real-time detection software helps to mitigate financial crimes.
- Understand Regulatory Obligation: Stay informed of the AML laws based on the business type.
- Stay Up to date: Maintain up-to-date track on AML laws to ensure compliance.
- AML Compliance Training: The best choice to train employees with the latest AML regulation updates is to hire an Internal Compliance office or KYC Provider.
Penalty Risk of AML Compliance
Failure to meet AML regulations can lead to serious consequences. Let us know how:-
- Financial penalties: Depending on the density of violations, penalties can range from AED 50000 to AED 5 million.
- License Suspension: Non-compliance may cause temporary or permanent suspension of license.
- Reputation Risk: Non-compliance with regulation may cause harm to reputation, credibility, and also loss of clients.
- Legal actions: Customers involved in money laundering activities can lead to imprisonment.
BMS Auditing’s AML compliance service
BMS Auditing offers a wide spectrum of AML compliance solutions to handle the complexities of anti-money laundering and combating financial terrorism (CFT). Our services are:-
- Continuous Compliance Support
- AML Reporting and Monitoring
- AML Health check
- Documentation Review
- Anti-corruption and Prevention of Fraud
- Mitigation of Risk
- AML compliance policy and procedures.
Why partner with BMS Auditing?
BMS Auditing is a leading anti-money laundering service provider in the UAE. Our expert consultants offer robust AML compliance solutions to all UAE businesses across the UAE. Our team of experienced professionals is well equipped with knowledge and expertise to navigate the complexities of anti-money laundering policies and helps to stay updated with the latest AML regulations.
Partner with BMS Auditing for streamlined and stress-free AML solutions.
Call us now for a Free Consultation.
