(AML-CFT Law Article 15; AML-CFT Decision Articles 17.2, 21.2, 31.3, 39)

Financial Institutions are obliged to report to the UAE’s Financial Intelligence Unit (FIU) when they have reasonable grounds to suspect a transaction or funds representing all or some proceeds, or suspicion of their relationship to a Crime (see Section 7, Suspicious Transaction Reporting). In reporting their suspicions, they must maintain confidentiality with regard to both the information being reported and to the act of reporting itself, and make reasonable efforts to ensure the information and data reported are protected from access by any unauthorised person.

It should be noted that the confidentiality requirement does not pertain to communication within the FI or its affiliated group members (foreign branches, subsidiaries, or parent company) for the purpose of sharing information relevant to the identification, prevention or reporting of a Crime. However, under no circumstances are FIs, or their managers or employees, permitted to inform a Customer or the representative of a Business Relationship, either directly or indirectly, that a report has been made, under penalty of sanctions (see Section 3.9, Sanctions against Persons Violating Obligations). This is the so-called “tipping off” requirement. This also extends to any related information that might be provided to the FIU or information that is being requested by the FIU.

FIs are not permitted to object to the statutory reporting of suspicions on the grounds of Customer confidentiality or data privacy, under penalty of sanctions. Moreover, data protection laws include provisions that allow the FI to report to the authorities. (see Section 3.9, Sanctions against Persons Violating Obligations).