UAE, being the biggest market leader globally, it becomes crucial to maintain the integrity of the financial market and prevent the entry of any criminal group or illegal act categorized as a breach of trust. Individuals or organizations might perpetrate money laundering to obtain money, property, or services to secure their personal or commercial gain.
The UAE government recently published a revised and more detailed anti-money laundering policy. It contains a list of breaches, and administrative penalties levied to prevent money laundering in UAE and take appropriate actions against terrorist funding. Based on the UAE federal legislation, the regulation is developed to meet the international Anti-Money Laundering (AML) / Combating the Financing of Terrorism (CFT) standards structured in recommendation with the Financial Action Task Force.
The list of 26 violations inscribed in the regulation involves individuals' activities in the business sector, corporate service providers, and the Designated Non-Financial Businesses and Professionals (DNFBPs) in combating money laundering and terrorism financing under Federal Decree-Law No.20 of 2018. The officials classified the activities under the four main categories being:
- Brokers and Real Estate Agents
- Dealers of Precious Metals & Gemstones
- Corporate Service Providers
What is the Registration Process and Deadline for AML Regulation?
Companies operating in similar sectors must develop their expertise and be mindful of the threats that lead to money laundering to keep up with the government's efforts. The company must register with the Financial Intelligence Unit to be in safe hands under the UAE law. According to the Ministry, the grace period for registering on the two anti-money laundering and anti-terrorist financing schemes has been extended until March 31, 2021. If a company fails to comply by the deadline, sanctions will be imposed, including revoking the business license and the corporation's termination.
What are the Penalties stated under AML Regulation?
Once a company has been registered with the Financial Intelligence Unit, they are expected to obey other system-related steps in AML compliance with the Decree-Law provisions. If leniency is given, the company will be subject to the penalties levied by Cabinet Regulation No. 16 of 2021. The fines range from AED 50,000 to AED 1 million, and they can be doubled up to AED 5 million depending on the provisions of the law and the assessment of the Supreme Committee for Combating Money Laundering, Funding of Terrorism, and Criminal Organizations.
How can Avyanco help with AML Registration in the UAE?
Are you conducting a business in the UAE and fall into one of the AML categories? Avyanco Group might act as your safeguard. As the leading financial consulting company in the UAE, we first determine your business's nature and provide you with relevant advice on whether or not your business is controlled. If this is the case, we will file your company details in full confidence and handle the rest of the procedure for you. It will be entirely our duty to keep your company free of fines and legal responsibilities, as well as to provide you with end-to-end financial solutions that will make your job much simpler and easier. Our honesty and consumer satisfaction set us apart from the competition. Please contact us if you have any questions about Anti-Money Laundering / Combating the Finance of Terrorism or any other audit and financial services in the UAE.
Call/WhatsApp: +971 50 3989000, (T):+97142405000, Email: firstname.lastname@example.org.