Compliance & Anti-Money Laundering

Compliance & Anti-Money Laundering

by Aswani

Anti-Money Laundering (AML) / Counter-Terrorist Financing (CFT) Compliance Services

During this pandemic stricken period, the economic crisis coupled with technological innovations has produced a lethal mix for financial institutions, which has resulted in a host of difficulties. Banking firms are always striving to adopt new rules and create full compliance systems as the regulatory framework evolves and gets more complicated. Financial offences such as anti-money laundering (AML) and counter-terrorist financing (CFT) threats are infiltrating and destroying nations’ monetary systems through these vulnerable and complicated regions.

In counteracting these fraudulent risks, the Central Bank of the United Arab Emirates (CBUAE) developed a specialized department, the Anti-Money Laundering and Counter-Terrorism Financing Supervision Department (AMLD) to address all AML/CFT issues. The CBUAE works closely with the UAE’s National AML/CFT to successfully implement the National Action Plan. AMLD collaborates with the Banking Supervision Department’s Examination Division to exchange AML/CFT information on LFIs inside the CBUAE. And externally, AMLD serves as a liaison between the CBUAE and domestic stakeholders.

The Anti-Money Laundering and Counter-Terrorism Financing Supervision Department (AMLD) has three major goals:

  • Conducting investigations against Licensed Financial Institutions (LFI)
  • Maintaining compliance with the UAE’s anti-money laundering and counter-terrorist financing legislative and regulatory framework
  • Detecting threats to the UAE’s financial industry, as well as weaknesses and emerging hazards

The United Arab Emirates (UAE) has declared the creation of a new branch of its court system dedicated to hearing matters involving money laundering and financial crime. This new court, which is part of the UAE’s National Action Plan to combat the financing of terrorism, will be managed by the newly formed Executive Office of Anti-Money Laundering and Counter-Terrorist Finance and supervised by expert judges.

The UAE’s AML/CFT regulatory system was further strengthened by two Cabinet Decisions:

I. New rules for entities to disclose their beneficial owners were implemented by Cabinet Decision No. (58), with the goal of:

  • Improve the transparency of entities registered in the UAE; and
  • Generate beneficial owner data executive and regulatory systems and procedures that are effective and long-lasting.

II. The execution of relevant UN Security Council Resolutions was mandated by Cabinet Decision No. (74) of 2020

The UAE government insists on a sophisticated anti-money laundering (AML) system to combat the risk of money laundering and terrorist funding, and also provides directives for how financial institutions in various industries should monitor for money laundering activities. The following industries/individuals must adhere to AML/CFT rules.

  • Banks, finance firms, exchange houses, and money service businesses are all examples of money service enterprises (including hawala systems or other monetary value transfer services)
  • Insurance firms, agencies, and brokers are all part of the insurance industry.
  • Brokers, dealers, advisers, and investment managers in the securities and commodities industries
  • Other Financial Institutions

Suspicious Transaction Reports (STR)

The UAE Central Bank has launched new guidance mandating all UAE financial institutions to submit suspicious activity reports (SARs) or suspicious transaction reports (STRs) to the UAE’s Financial Intelligence Unit (FIU) via the goAML portal within 35 calendar days of any behaviour they reasonably believe is linked to money laundering, terror financing, or other illegal conduct. The new guidelines also advise UAE financial institutions that there is no minimum threshold for reporting suspicious activity or transactions, even attempted transactions, and that all suspicious activities and transactions, regardless of amount, should be notified to the UAE Financial Intelligence Unit (FIU) online using the GoAML site, which is their integrated system.

Filing Suspicious Transactions Report

A reporting entity must be linked to the goAML platform in order to submit a STR to the UAE FIU.

  • Money Exchange Houses and Hawaladars who are registered: The UAE Remittance Reporting System (UAERRS) provides a platform for reporting the specifics of all daily transfers.
  • In the case of Supervisory Bodies: Supervisory Bodies should login to the goAML portal to authorise regulated entities access and obtain information about their STR filings for monitoring.
  • For domestic Competent Authorities: To receive STR disclosures and interact with the UAE FIU, law enforcement agencies must login to the goAML portal. Domestic authorities can link to the Integrated Enquiry Management System (IEMS), which is a platform for exchanging specific requests and accompanying correspondence, in addition to goAML.

Any breach of the -Law and Regulation may result in administrative fines. Failure to disclose suspicions of money laundering or terrorist funding is a criminal crime in the UAE, according to the AML Law.

The UAE has been designated as cash based economy and aims to improve government activities in a structured and planned manner to effectively counter fraudulent risks. As a result, the UAE’s drive toward a more comprehensive anti-money laundering system highlights the country’s status as a major financial hub, indicating a clear commitment to bringing the UAE in compliance with international standards.

Why Choose Buchprufer Consultants?

We are a seasoned firm that provides cost-effective solutions to the financial spectrum of businesses across the globe. Buchprufer Consultants has a roster of specialists with more than a decade of experience delivering offshore services to a number of leading companies. Our team consists of around 100 highly qualified professionals that provide top-notch, highly professional accounting, auditing, payroll, taxation, IT, and HR services. Our ethics and compliance professionals have a streamlined approach and procedures which are as follows:

  • Firstly, we conduct a risk assessment of your company to better understand the compliance risks that might jeopardize your company’s ability to achieve its strategic goals.
  • Our team will analyze the risks that are most likely to cause legal, financial, operational, or reputational harm and provide suitable guidance to eliminate those risks.
  • To assist in enhancing the efficacy of risk management, compliance, and internal audit, our compliance team will design realistic solutions, optimize compliance procedures, and alter current organizational structures. Operational, legal, and regulatory compliance concerns are likely to be included in our compliance risk assessment.

In addition to the aforementioned procedure, our staff can assist you with the following:

  • Outsourced Compliance and Money Laundering Reporting Officers for DFSA-regulated companies and others
  • Advisory, audit, and training on anti-money laundering (AML) and compliance
  • Complete end-to-end support with new business incorporation and authorization…
  • Drafting papers and manuals, such as compliance and anti-money laundering manuals, as well as compliance monitoring programmes
  • Preparation for an Initial Public Offering (IPO)
  • Conversion consulting for International Financial Reporting Standards (IFRS)

Our technology platform allows our clients to remain updated on regulatory standards while also assisting them in updating their present systems to keep up with the latest advances in order to satisfy the ever-changing regulatory landscape.

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