1.3. Legal Basis
يسري تنفيذه من تاريخ 8/9/2021This Guidance builds upon the provisions of the following laws and regulations:
| (i) | Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering (“AML”) and Combatting the Financing of Terrorism (“CFT”) and Financing Illegal Organisations (‘AML-CFT Law”); | |||
| (ii) | Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation for Decree-Law No. (20) of 2018 on AML and CFT and Financing of Illegal Organisations (“AML-CFT Decision”); and | |||
| (iii) | Cabinet Decision No. (74) of 2020 Regarding Terrorism Lists Regulation and Implementation of United Nations Security Council (UNSC) Resolutions on the Suppression and Combating of Terrorism, Terrorist Financing, Countering the Proliferation of Weapons of Mass Destruction and its Financing and Relevant Resolution (“Cabinet Decision 74”). | |||
With respect to transaction monitoring (“TM”), and as per Articles 4.2 (a) and 20 of AML-CFT Decision, LFIs are obliged to develop internal policies, controls, and procedures that are commensurate with the nature and size of their business and are approved by senior management to enable them to manage the crime risks that have been identified. They must also continuously update them. Furthermore, under Article 16 of AML-CFT Decision, LFIs must put in place indicators that can be used to identify suspicious transactions and other activity in order to file suspicious transaction reports (“STR”), suspicious activity reports (“SAR”) or other report types to the UAE’s Financial Intelligence Unit (“FIU). LFIs must update these indicators on an ongoing basis, in line with all applicable instructions from the UAE’s supervisory authorities and FIU.
With respect to sanctions screening, and as per Article 21.2 of Cabinet Decision 74, LFIs are obliged to regularly screen their databases and transactions against names on lists issued by the UNSC and its relevant Committees (UN Consolidated List) or by the UAE Cabinet (Local Terrorist List), and also immediately when notified of any changes to any of such lists. Such screening must include regular searches of their customer databases, parties to any transactions, potential customers, beneficial owners, and persons and organizations with which the LFI has a direct or indirect relationship. LFIs must also screen their customer database before conducting any transaction, or entering into a business relationship with any person, to ensure that their name is not listed on the UN Consolidated List or the Local Terrorist List.
For more details and information, please refer to the Executive Office of the Committee for Goods and Materials Subject to Import and Export Control’s (“Executive Office”) Guidance on TFS for Financial Institutions and Designated Non-financial Business and Professions2, the CBUAE’s Guidance for Licensed Financial Institutions on the Implementation of TFS, and the CBUAE’s Guidance for Licensed Financial Institutions on STR3. LFIs should consult the CBUAE’s and the Executive Office’s websites as updated from time to time.
2 Available at: https://www.uaeiec.gov.ae/en-us/un-page.
3 Available at: https://www.centralbank.ae/en/cbuae-amlcft.