Thursday 08 December 2022 - 2:38:03 pm

CBUAE issues guidance on anti-money laundering, combatting terrorism for licenced financial institutions

ABU DHABI, 29th June, 2021 (WAM) -- The Central Bank of the UAE (CBUAE) has issued a new guidance on anti-money laundering and combatting the financing of terrorism (AML/CFT) for its licenced financial institutions (LFIs) that provide services to real estate and precious metals and stones sectors.

The guidance, which came into effect on 20th June, will assist the understanding and mitigation of risks as well as the implementation by LFIs of their statutory AML/CFT obligations, as outlined in Federal Decree-Law No. (20) of 2018 on AML/CFT and the Cabinet Decision No. (10) of 2019.

The guidance also takes into account the standards issued by Financial Action Task Force (FATF).

As stipulated in the guidance, for all customer dealings, LFIs are required to perform appropriate customer due diligence and report any behaviour that they reasonably suspect may be linked to money laundering, financing of terrorism or a criminal offence by submitting suspicious activity reports directly to the UAE’s Financial Intelligence Unit using the "goAML" portal.

LFIs providing services to real estate and precious metals and stones sectors specifically should assess the associated money laundering and terrorist financing risks and develop an effective AML/CFT programme that encompasses a competent compliance officer and provides training for LFIs’ employees on said risks.

Khaled Mohamed Balama, Governor of the CBUAE, said, "A critical part of CBUAE’s mandate is to ensure that all licenced financial institutions have a deep comprehension of their role in mitigating and addressing the risk of illicit activities in the UAE’s financial system. This Guidance serves as a key point of reference for those providing services to real estate and precious metals and stones sectors and is set to increase the efficacy of licenced financial institutions in contributing to the stringent national efforts in the field of AML/CFT."

The UAE Ministry of Economy - which issues the relevant guidance - supervises real estate agents, brokers and dealers in precious metals and stones who are qualified as designated non-financial businesses and professions.