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  • 1 Introduction

    • 1.2 Applicability

      Unless otherwise noted, this Guidance applies to all natural and legal persons which are licensed and/or supervised by the CBUAE in the following categories:

        Registered Hawala Providers (``RHP'');
        National banks, branches of foreign banks; and
        Exchange houses.
       
      Key Definitions and Acronyms
       

      AML/CFT: Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations.

      Beneficial owner: The natural person who owns or exercises effective ultimate control, directly or indirectly, over a client; or the natural person on whose behalf a transaction is being conducted; or the natural person who exercises effective ultimate control over a legal person or legal arrangement.

      Beneficiary Hawala Provider: The beneficiary's Hawala Provider, or receiving Hawala Provider, that receives the funds or equivalent value from the Originating Hawala Provider.

      CBUAE Regulations: Any resolution, regulation, circular, rule, instruction, standard or notice issued by the CBUAE.

      Hawala Activity: The arrangements for transfer and receipt of funds or equivalent value and settlement through trade and cash.

      Hawala Provider Certificate: The Certificate issued by the CBUAE for carrying on Hawala activity in the UAE.

      Legal person: Any entities other than natural persons that can establish in their own right a permanent customer relationship with a financial institution or otherwise own property. This can include companies, bodies corporate, foundations, partnerships, or associations, along with similar entities.

      Money or Value Transfer Service (MVTS): financial services that involve the acceptance of cash, cheques, other monetary instruments or other stores of value and the payment of a corresponding sum in cash or other form to a beneficiary by means of a communication, message, transfer, or through a clearing network to which the MVTS provider belongs.

      Originating Hawala Provider: The originator's Hawala Provider, or sending Hawala Provider, that initiates and carries out the transfer of funds or equivalent value to the Beneficiary Hawala Provider.

      Registered Hawala Provider: Any natural person holding a valid residency visa or Legal Person, who is registered in the CBUAE's Hawala Providers Register in accordance with the provisions of its Circular No. 24/2019, including its agents or a network of agents.

      Registered Hawala Provider Agent: Any natural or legal person carrying out activity outside the UAE on behalf of a Registered Hawala Provider.

       

    • 1.4 Organization of this Guidance

      The FATF's Mutual Evaluation Report of the UAE issued in April 2020 stated that the MVTS sector, including the Hawala service providers, is weighted as highly important in terms of risk and materiality in the UAE. This Guidance is addressed to the i) RHP and ii) LFIs that provide accounts or financial services to RHP. Part I of this Guidance applies to both RHP and LFIs, whereas Part II applies specifically to RHP and Part III specifically to LFIs.