03/03/21

UNITED ARAB EMIRATES: Ministry of Economy extends anti-money laundering compliance date for four business categories.

As published on gulfnews.com, Tuesday 2 March, 2021.

Dubai: The UAE’s Ministry of Economy has extended the grace period until March 31 for certain business categories to be in full compliance with anti-money laundering and prevention of terrorism financing.

Businesses that fail to do so will face fines range from Dh50,000 to up to Dh1 million and can be raised to Dh5 million based on the provisions of the law and according to the assessment of the Supreme Committee for Combating Money Laundering, and Financing of Terrorism and Illegal Organizations.

This applies to activities in four categories - brokers and real estate agents, dealers of precious metals and gemstones, auditors, and corporate service providers.

Three actions will invite fines of Dh1 million each.

These are for dealing with fake banks in all ways; opening or maintaining bank accounts with fake names or numbers without the names of their owners; and failure to take measures related to clients listed on international or domestic sanctions lists, prior to establishing or continuing a business relationship.

These businesses must first register with the Financial Intelligence Unit (goAML) and on the Committee for Commodities Subject to Import and Export Control system (Automatic Reporting System for Sanctions Lists).

Following the registrations, they should adopt other measures related to the two systems in accordance with the provisions of the Decree-Law, its implementing regulations and the relevant decisions.

“We call on all concerned companies to establish internal policies, procedures and controls to avoid money laundering risks in accordance with the measures set forth by the executive regulations of the law, which can be found on the official website of the Ministry of Economy,” said Safeya Al Safi, Director of the Anti-Money Laundering Department, Ministry of Economy.