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Anti Money Laundering Assessment Compliance in Dubai, UAE

September 16, 2021

What is Anti-Money Laundering?

Anti-Money Laundering (AML) refers to several laws and regulations that are implemented to keep the company’s finances safe from all kinds of fraud and corruption. This law prevents criminals from hiding and illegally transporting their illegally obtained funds.

There are 5 pillars of a successful AML program:

  • Independent Review
  • Ongoing AML Training
  • Customer Due Diligence
  • Documented internal policies, laws, procedures, and controls
  • A Highly Trained and Experienced Compliance Officer

These are the most important factors that determine the success of an AML program.

The process of a successful AML program consists of three essential stages:

  • Placement of Money, where money is placed into a company’s financial infrastructure.
  • The layering of Money, where the root of money laundering is layered by multiple transactions using various accounting strategies. This is conducted through the sale and purchases of financial and non-financial assets.
  • Integration of Money, where the laundered money is brought back into the economy, normally through a banking system.

The AML assessment process in Dubai involves the checking of a company’s financial activities, including their accounts, transactions, debts, and investments. AML Experts check the company’s financial activities for possible frauds and criminal activities.

The Law of AML in Dubai states that money laundering is independent of the underlying criminal offense, and a person's penalty for an underlying crime does not exempt him or her from being prosecuted for money laundering.

Money Laundering Fines and Penalties in Dubai

The laws of Money laundering in UAE are very strict and in the case of a violation, which also included attempted money laundering, individuals can get imprisoned for up to 10 years, depending upon the severity of the offense. Other than imprisonment, individuals will also have to pay fines, starting from Dh100,000 and these fines can go up to Dh 5 million depending upon the severity of the offense and the amount of money involved. Fines of Dh50,000 can be imposed upon companies who fail to train staff to combat money laundering or fail to keep records properly.

How AML impacts companies

When money laundering becomes a part of a company’s financial operations, it corrupts it in a bad way. Money laundering destroys the financial sectors of a company that are very crucial for the company’s economic growth. Crime and corruption get promoted in your work culture and it badly affects the integrity of the company. Anti-Money Laundering processes find out the root causes of such corruption and the people behind it. Anti-Money Laundering processes develop a culture in the company where every employee is accountable and cannot disrupt the company’s financial operations in an illegal way to reap personal benefits.

Firms that fail to meet UAE’s AML regulations, their company is audited and once money laundering and other forms of corruption are detected in the company's financial system, the company gets registered for AML. DFSA has the right to carry on investigations, and for that, it has the right to go through the company’s financial system and records.

Anti Money Laundering in Dubai

Benefits of AML Services in Dubai for assessment of your company

If you want to keep your financial operations free from corruption, then it is important to get registered in AML in Dubai. Here are some benefits getting AML Services in Dubai:

  • Your business will develop a trustable image in front of your investors and stakeholders.
  • Your company’s financial operations will run smoothly.
  • Banks will trust your company with debts
  • Your business will be safe from corruption and frauds
  • It will make it easier for Dubai authorities to catch criminals behind the frauds happening in your company

Anti Money Laundering Process

In the Anti-Money Laundering Process, companies first put money in the system to check loopholes in the system. After finding out the root of money laundering and system loopholes that are causing it, these loopholes are patched by using multiple accounting techniques and strategies. This is done by adding money to the system through planned purchases and sales. Then, the laundered money is brought back to the company’s financial system through a banking system.

Firms that fail to meet UAE’s AML regulations, their company is audited and once money laundering and other forms of corruption are detected in the company's financial system, the company gets registered for AML. DFSA has the right to carry on investigations, and for that, it has the right to go through the company’s financial system and records.

  • Eligibility to get AML assessment

Not every accountant can conduct an AML assessment in a company. There are certain eligibility criteria for it, and accountants who fall into that criteria are eligible to conduct an AML assessment. AML Assessment Officers must be knowledgeable in all aspects of financial policy and financial crime methods. He/she is responsible for handling confidential information and performing a proper analysis of a company’s financial processes.

  • Requirements to get AML compliance

The UAE Government takes AML very seriously to sustain its healthy business environment. DFSA’s all actions are in accordance with the United Nations and FATF, and its AML policies are based on the regulations of FATF regarding money laundering. Financial institutions in Dubai have to follow all of UAE’s AML policies. These institutions detect fraud and corruption in a company’s financial operations, such as suspicious transactions. These suspicious activities are exposed through AML practices. Then, these financial institutions forward their observations in the form of a Suspicious Activity Report to DFSA. DFSA studies these reports to decide whether there is criminal activity involved or not.

Why AML Compliance in Dubai is important?

Dubai is one of the best cities to do business, and the reason behind this is that Dubai has a no-tolerance policy against money laundering and corruption. This is the reason why Dubai has one of the healthiest and cleanest business environments in the world, where companies follow a compliance culture throughout their financial operations. AML compliance in Dubai makes sure that your business operations run smoothly and efficiently.

How to prevent Anti Money Laundering for Business

The best way to prevent AML is by hiring qualified audit managers or hire an audit company to audit your company’s business operations and transactions. Auditors are tasked to keep track of all of the company’s transactions and analyze it for anomalies and frauds. If a company gets regularly audited, it won’t be encountering money laundering and other financial crimes.

Benefits of hiring AML Expert in Dubai

AML Experts in Dubai work in accordance with the laws of DFSA, UN, and FATF to bring a culture of compliance in your company to make that your company’s financial operations run without disruptions caused by criminal activities such as money laundering. AML Experts in Dubai keep track of all of your company’s transactions and use accounting tricks to detect and layer financial loopholes in your system.

How Avyanco can Assess your Anti Money Laundering Compliance with our AML Services in Dubai?

Avyanco is one of the UAE’s leading consulting firms that provides AML Services in Dubai by helping businesses to create a transparent working environment where the company’s finances are free from all kinds of fraud and suspicious activities. AML Experts at Avyanco will check your transaction and account books and will analyze them for potential frauds and suspicious transactions.

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