The Ministry of Economy in UAE, in accordance with the provisions of Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations, and through its Implementing Regulation has launched the awareness campaign to enable registered Designated Non-financial Businesses and Professions (DNFBPs) to register in the Financial Intelligent Unit (FIU) GoAML System. In the event of non-fulfillment of the requirements stated above, may result in the suspension of business license as directed by the Ministry of Economy.
The DNFBPs sectors include a wide range of non-financial sectors and activities that mostly exposed to the risks of money laundering and misuse of commercial transactions and the funds traded in them for the purposes of money laundering or other illegal practices, given the nature of the services they provide or the products they deal with. This falls in line with international standards issued by FATF. The categories under these sectors have been divided according to the nature of activity in each sector, as follows:
• Brokers and real estate agents
• Dealers of precious metals and gemstones
• Independent accountants and auditors
• Corporate service providers
Money laundering and the terrorist financing are two global problems that endangers the security and stability of financial institutions and systems across the world. Financial Intelligence Units (FIUs) play a vital role in combating money laundering and terrorist financing activities. Being responsible for collecting and analysing reports made by financial institutions in line with the requirements of domestic AML/CTF laws and regulations. These reports gathered by FIUs (CBUAE) act as the basis for conducting investigations into money laundering, terrorist financing, and other serious offences.
The Central Bank of UAE has made it mandatory for all financial institutions in the UAE to report suspicious activities directly through its GoAML software. GoAML System is an integrated digital platform through which financial institutions, Designated Non-financial Businesses and Professions (DNFBPs) and relevant authorities can send Suspicious Transaction Reports (SRTs) and Suspicious Activity Reports (SAPs) to Financial Intelligent Units to alert about possible criminal activities. GoAML is primarily been used by FIU to collect, evaluate and distribute suspicious transactions rapidly and effectively.
As per the directives from the Ministry of Economy, UAE, the relevant establishment must take three measures to protect itself from money laundering threats, these steps are:
1. Appointing a Compliance Officer: - The company shall appoint a legal person who shall be responsible for registration and compliance in accordance the Regulations on Anti Money Laundering and Combating the Financing Of Terrorism.
2. Performing the due diligence measures: It is the process of identifying or verifying the information of the client or the beneficiary Owner, whether he is a natural or legal person, or a legal arrangement, the nature of his work, the purpose of the business relationship, the ownership structure and the control over it.
3. Registration in the GoAML System and Reporting suspicious transactions through it and Registration in the Automatic Reporting Systems for sanctioned lists of the committee for commodities subject to import and export control and alignment of their commercial operations with the lists produced on an ongoing basis by the system.
Pursuant to the relevant Cabinet decisions, the Ministry of Economy is the supervisory authority entrusted with the supervision of the ‘Designated Non-financial Businesses and Professions’ (DNFBPs) sector at the state level and commercial free zones with regard to AML/CFT. It is committed to developing a strong regulatory framework and providing a safe environment for organizations, companies, and designated non-financial professions to work within. The Ministry has stated that it will organize field inspections and campaigns to track the scope of dedications of the target establishments to the registration and implementation of relevant measures in both systems. Such initiative will also help to raise awareness of the requirements of federal law and punishment for violations, and to ensure they are committed to its provisions.
In order to comply with the regulation, we at Black Stone Tax Consultancy, can guide you through the registration process. We will collect all the necessary documents required and will be happy to do it on your behalf.