UAE: AML Compliance DNFBP

Gupta Accountants understands the intricate challenges faced by designated non-financial businesses and professions (DNFBPs) in fulfilling their compliance obligations under the UAE's Anti-Money Laundering (AML) regulations. Given the unique landscape of business in the UAE, it is essential for DNFBPs to navigate these regulations effectively to mitigate risks and ensure their operations align with legal standards. To address these challenges, Gupta Accountants offers a comprehensive suite of intelligent solutions tailored specifically for AML compliance. By leveraging their expertise and industry insights, they empower businesses to implement efficient processes, reduce regulatory burdens, and foster a culture of compliance, ultimately enhancing their operational integrity in the dynamic UAE market.

UAE: AML regulations

Law :   Federal Decree by Law No. (20) of 2018 on Anti Money Laundering and Combating the Financing of Terrorism and Illegal Organizations

Executive Regulation : 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 organizations

Decisions: Cabinet Decision No. (58) of 2020 Regulating the Beneficial Owner Procedures

Decisions: Cabinet Resolution No. (74) of 2020 Regarding the Terrorist List System and The Implementation of Security Council Resolutions Related to Preventing and Suppressing Terrorism and Its financing, Counter of Proliferation and its financing, and the relevant resolutions

UAE: Understanding DNFBP AML Compliance

What are DNFBPs?

DNFBP stands for "Designated Non-Financial Business and Professions"(DNFBP). Certain types of "non-financial" businesses have been identified as being susceptible to money laundering and terrorist financing due to the nature of their business and the transactions with activity that they may conduct.
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Certain class of business and professions, which currently are classified as Designated Non-Financial Business and Professions"(DNFBP) in UAE is as as follows;

1. Real Estate Firm that carries out transactions with customers involving the buying or selling of real property For example, real estate developers, brokers and agents.

2. Auditing, accounting or tax consultancy Firm that provide professional services and assurance to third parties on the financial and tax soundness of them and/or their business. For example, chartered accountants, accountants, tax specialists etc.

3. Dealer of precious metals or stones who are are involved in the production of precious metals or precious stones, an intermediate buyer or broker, precious stone cutter and polisher, precious metal refiners, and/or jewelry manufacturer who use precious metals and precious stones to retail sellers to the public or buyers and sellers in the secondary and scrap markets. These include gold, silver, platinum, diamonds etc. For example, jewelry stores.

4. Trust or Company Service Provider who is involved in providing business services and consulting to third parties.

Registration obligations under the goAML in UAE are on the DNFBP (Designated Non-Financial Businesses and Professions) based in mainland and free zone.

Why DNFBPs?

Designated Non-Financial Businesses and Professions (DNFBPs) play a critical role in the fight against money laundering and terrorism financing under UAE AML regulations. These entities, which include real estate agents, legal professionals, accountants, and jewelers, are required to implement robust customer due diligence measures, report suspicious transactions, and maintain comprehensive records. By adhering to the guidelines set forth in the UAE's Anti-Money Laundering framework, DNFBPs contribute significantly to the detection and prevention of illicit financial activities. Their proactive involvement not only enhances the integrity of the financial system but also bolsters national security efforts to combat terrorism financing. As the regulatory environment evolves, the commitment of DNFBPs to compliance and ethical practices remains imperative in safeguarding the economy and upholding international standards against financial crimes.

UAE: Key DNFBP AML Compliance Requirements

• Risk-Based Approach (RBA)
• Customer Due Diligence (CDD)
• Enhanced Due Diligence (EDD) for high-risk clients
• Record-Keeping and Data Retention
• Reporting Suspicious Transactions (STRs)

UAE: Non-Compliance Penalties

In the UAE, non-compliance with Anti-Money Laundering (AML) laws can lead to severe penalties. Here are the key points to understand:     

1. Fines: Individuals and companies may face hefty fines, which can range from thousands to millions of dirhams depending on the severity of the violation.

2. Imprisonment: Serious offenses can result in imprisonment for individuals involved in money laundering activities.

3. License Revocation: Businesses found violating AML laws risk losing their operating licenses.

4. Reputation Damage: Non-compliance can harm a company's reputation, leading to loss of customer trust. ​

5. Increased Regulatory Scrutiny: Companies may face closer monitoring from regulatory bodies if found non-compliant.

Understanding these consequences can help individuals and businesses prioritize compliance with AML regulations in the UAE.

UAE: Stages, AML Compliance DNFBP

• Conducting regular risk assessments.

• Implementing robust AML policies and procedures.

• Training staff on AML compliance obligations.

• Leveraging technology for transaction monitoring and reporting.

In the UAE, Designated Non-Financial Businesses and Professions (DNFBPs) play a crucial role in ensuring Anti-Money Laundering (AML) compliance. To effectively avoid non-compliance, DNFBPs must implement a robust framework that includes conducting thorough customer due diligence, monitoring transactions for suspicious activities, and maintaining accurate records as per regulatory requirements. Regular training for staff on AML regulations and risk assessment is vital to cultivate a culture of compliance. Additionally, DNFBPs should leverage technology to automate compliance processes, thereby enhancing their ability to detect and report anomalies promptly. By adhering to guidelines set forth by the Financial Action Task Force (FATF) and the UAE's relevant authorities, DNFBPs can not only mitigate the risk of non-compliance but also contribute to the broader fight against financial crime in the region.

UAE: Gupta Accountants DNFBP AML Compliance Services

​Risk Assessment and Mitigation Service 

AML Training Programs

Assistance with AML Regulatory Reporting

AML Compliance audit

UAE: goAML

The goAML application is a fully integrated software solution developed specifically for use by Financial Intelligence Units (FIU's) and is one of UNODC's strategic responses to financial crime, including money-laundering and terrorist financing. Financial Intelligence Units play a leading role in any anti-money laundering regime as they are generally responsible for receiving, processing and analyzing reports made by financial institutions or other entities according to the requirements of domestic anti-money laundering laws and regulations. Such reports and other information gathered by FIU's often provide the basis for investigations into money laundering, terrorist financing and other serious offences. goAML is specifically designed to meet the data collection, management, analytical, document management, workflow and statistical needs of any Finance Intelligence Unit. The goAML application was developed by the Information Technology Service (ITS) of UNODC in partnership with the UNODC Global Programme Against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML).
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UAE: Key terms related to AML (Anti-Money Laundering) compliance

1. AML/CFT - Anti-Money Laundering and Combating the Financing of Terrorism
2. Federal Decree-Law No. 20 of 2018 - Governs AML/CFT in the UAE
   
3. Financial Action Task Force (FATF) - Global standard-setting body for AML compliance
   
4. Suspicious Transaction Report (STR) - Mandatory reporting of unusual or suspicious activities
   
5. Customer Due Diligence (CDD) - Verifying customer identity and assessing risks
   
6. Ultimate Beneficial Owner (UBO) - Identifying the individual(s) who ultimately own or control a business
   
7. GoAML - UAE's digital platform for reporting AML compliance requirements
   

UAE: Gupta Accountants DNFB Compliance Services ​

• Professionally qualified Chartered Accountants with experience in  AML - Anti Money Laundering Compliance, Review, Support,  Consulting  and Advisory 

• Cost Effective AML - Anti Money Laundering Compliance & Support Services in UAE.

• Compliance to local, International standards & applicable rules and regulations. ​

• Gupta Accountants team of AML - Anti Money Laundering Compliance Consultants in provides supports at all the stages of DNFB Compliance Services in the UAE including Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Fujairah, and Ras Al Khaimah.​