Legal persons and arrangements are an important part of LFIs’ customer base and of economic activity in the UAE. However, legal persons and arrangements create real, and diverse, risks for financial institutions. LFIs are not expected to prohibit legal person and arrangement customers. Instead, they must understand, manage, and mitigate the risk through the appropriate application of preventive measures required under AML-CFT Decision and CBUAE directives and guidance documents.

This section describes LFIs’ obligations under UAE Law with specific reference to legal persons and arrangements. It is not a comprehensive discussion of all requirements imposed on LFIs. LFIs should consult the Laws and regulations including AML-CFT Decision and the CBUAE’s Anti-Money Laundering the Combating the Financing of Terrorism and Illegal Organizations Guidelines. The controls discussed below must be integrated into the LFI’s larger AML/CFT compliance program, and supported with appropriate governance and training.