1. Introduction
1.1 Purpose
Article 44.11 of the Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation of Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations charges Supervisory Authorities with “providing Financial Institutions…with guidelines and feedback to enhance the effectiveness of implementation of the Crime-combatting measures.”
The purpose of this Guidance is to assist the understanding and effective performance by the United Arab Emirates Central Bank’s (“CBUAE”) licensed financial institutions (“LFIs”) of their statutory obligations under the legal and regulatory framework in force in the UAE. It should be read in conjunction with the CBUAE's Procedures for Anti-Money Laundering and Combating the Financing of Terrorism and Illicit Organizations (issued by Notice No. 74/2019 dated 19/06/2019) and Guidelines on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations for Financial Institutions (issued by Notice 79/2019 dated 27/06/2019) and any amendments or updates thereof.1 As such, while this Guidance neither constitutes additional legislation or regulation nor replaces or supersedes any legal or regulatory requirements or statutory obligations, it sets out the expectations of the CBUAE for LFIs to be able to demonstrate compliance with these requirements. In the event of a discrepancy between this Guidance and the legal or regulatory frameworks currently in force, the latter will prevail. This Guidance may be supplemented with additional separate guidance materials, such as outreach sessions and thematic reviews conducted by the Central Bank.
Furthermore, this Guidance takes into account standards and guidance issued by the Financial Action Task Force (“FATF”), industry best practices, and red flag indicators. These are not exhaustive and do not set limitations on the measures to be taken by LFIs in order to meet their statutory obligations under the legal and regulatory framework currently in force. As such, LFIs should perform their own assessments of the manner in which they should meet their statutory obligations.
This Guidance comes into effect immediately upon its issuance by the CBUAE with LFIs expected to demonstrate compliance with its requirements within one month from its coming into effect.
1 Available at https://www.centralbank.ae/en/cbuae-amlcft.
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:
• National banks, branches of foreign banks, exchange houses, finance companies, payment service providers, registered hawala providers and other LFIs; and • Insurance companies, agencies, and brokers.
1.3 Legal Basis
This Guidance builds upon the provisions of the following laws and regulations:
1.4 Definitions
Bearer Negotiable Instruments: Financial instruments of whatever form, whether in the form of a bearer document, such as: traveler’s cheques; promissory notes and cheques, payment orders, or others. These instruments may either be in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery; or may be incomplete instruments (including cheques, promissory notes and money orders) signed, but with the payee’s name omitted.
CBUAE Regulations: Any resolution, regulation, circular, rule, instruction, standard or notice issued by the Central Bank.
Cash Couriers: Natural persons who physically transport currency and bearer negotiable instruments on their person or accompanying luggage from one jurisdiction to another.
Cash or Currency: Banknotes and coins that are legal tender in circulation as a medium of exchange.
Cross-Border Transportation of Currency or Bearer Negotiable Instruments: Any in-bound or outbound physical transportation of currency or bearer negotiable instruments from one country to another country. The term includes the following modes of transportation: (1) physical transportation by a natural person, or in that person’s accompanying luggage or vehicle; (2) shipment of currency through containerized cargo; or (3) the mailing of currency or bearer negotiable instruments by a natural or legal person.
Predicate Offense: Any act constituting a felony or misdemeanor under the applicable laws of the UAE whether this act is committed inside or outside the UAE when such act is punishable in both countries.