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Registered on goAML? What Next?

Great, you successfully registered on goAML! Do your obligations end there?

What are the subsequent steps to be taken to comply with AML regulations?
Will DNFBPs be inspected for Compliance?

Background
UAE’s Ministry of Economy (MOE) has prepared comprehensive plans for implementation and compliance with the requirements of Federal Decree Law no 20 of 2018 concerning AML and CFT. in this regard, MOE is vested with the duty of supervising and regulating Designated Non-Financial Businesses and Professions (DNFBP) operating in UAE for AML, CFT and Financing of Illegal Organizations Crimes.

Read our previous post about goAML Registration, Penalties & Deadlines.

To recap, who are DNFBP?
Article 3 of the Cabinet Decision 10 of 2019 has defined the following sectors as DNFBP:

  1. Real Estate Brokers and Agents
  2. Dealers in precious metals and stones
  3. Lawyers, Notaries, independent legal professionals, independent accountants
  4. Providers of Corporate Services and Trusts
  5. Other professions and activities as decided by Minister

Read our previous post for details on who are DNFBP and why register on goAML?

Obligations of DNFBP

The first step for DNFBP is to register on goAML. The compliance requirements by DNFBP does not end there.

DNFBP are required to perform the following obligations:

  • To identify, assess, understand risks related to AML /CFT
  • To define the scope of and take necessary due diligence measures
  • To appoint an AML/CFT compliance officer, approved by the relevant Supervisory Authority
  • To put in place adequate management and information systems, internal controls, policies, procedures to mitigate risks and monitor implementation
  • To put in place indicators to identify suspicious transactions
  • To report suspicious activity and cooperate with Competent Authorities
  • To promptly apply directives of Competent Authorities
  • To maintain adequate records

As DNFBP, how to deal with the requirements?

DNFBPs are obliged to identify, assess, and understand the ML/FT risks to which they are exposed. Both the AML-CFT Law and the AML-CFT Decision provide that supervised institutions may utilize a risk-based approach with respect to the identification and assessment of ML/FT risks.

DNFBPs are required to develop a risk based AML system addressing the following:

  • Develop a Governance framework including appointment of a Compliance Officer to manage the AML compliance activity
  • Identify AML related risks in their business – customers, country related risks, products and transactions related risks
  • Mitigate the AML related risks through internal control system involving policies, procedures and staff training
  • Put in place the system to identify suspicious transactions, report suspicious transactions as per AML guidelines in the goAML system and cooperate with the Authorities on dealing with suspicious transactions
  • Maintain adequate and complete records of all financial transactions for a period of five years from the date of completion of the transaction

Inspection and Penalties

The Supervising Authorities may inspect DNFBPs for AML-CFT in line with the guidelines and risk assessment guidelines followed by the Supervising Authorities.

The AML-CFT Federal Decree Law no (20) of 2018 prescribes various administrative penalties and/or imprisonment depending on the nature and severity of non-compliance to the Law. They include:

  • Financial penalties ranging from AED 50k to AED 5M
  • Banning violators, restricting Board power to arresting Responsible Officers/Board Members
  • Restricting Company activity to cancelling of Trade Licence

Deadline to Register on UAE’s goAML System

The registration final date is 31st March 2021. In case registration is not done, there are penalties including cancellation of license. Also the administrative  penalties relating to non-compliance by DNFBP ranges from AED 50,000 up to AED 5 million.

How can MCA help you with goAML?

MCA Management Consultants can help in designing and maintaining the compliance system expected from the entity to fulfil the DNFBP related obligations:

  • Develop the Governance structure for AML compliance consisting of policies, procedures and systems.
  • Provide outsourced Compliance function or assist the nominated Compliance Officer for maintaining the compliance as per AML-CFT laws.
  • Develop/Review the process/system for Customer Due diligence.
  • Develop the process/system for identifying and reporting suspicious transactions.
  • Advise on the documentation requirements for AML Complianc
Contact Details

Email: mcatax@mcagulf.com
Telephone (Dubai UAE): +971 4 3319501
Working Hours: 9AM – 6PM, Sunday to Thursday