Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) Measures During the COVID-19 Pandemic

Advisory from the Central Bank of the UAE (CBUAE)

The Central Bank of the UAE has issued an advisory to Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) regarding Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) measures during the COVID-19 pandemic.

Key Points

• Risk Assessment and Control Frameworks
  • FIs and DNFBPs must review their risk assessment and control frameworks to ensure they are up-to-date.
  • Internal policies and procedures should be revised as necessary, and policy amendments formally approved and documented.
• Non-Static Customer Identity Documentation
  • FIs and DNFBPs should keep up with the UAE Cabinet’s decisions regarding automation of renewals for non-static customer identification documents.
  • Customers are encouraged to utilize government smart services.
• Transaction Monitoring
  • Altered patterns of normal and suspicious transactional behavior may arise due to COVID-19, requiring careful analysis by FIs and DNFBPs.
  • Systems and monitoring rules should be adjusted accordingly to distinguish between new normal and suspicious behavior.
• Suspicious Transaction Reporting
  • The CBUAE expects FIs and DNFBPs to report suspicious transactions through the FIU’s goAML reporting platform in a timely manner.
  • If operational challenges arise due to COVID-19, contact the FIU for interim arrangements.
• Sanction Screening Processes
  • FIs and DNFBPs must update records daily to identify individuals or entities designated by the UNSC and/or UAE Cabinet.
  • Conduct quality and timely reviews, and freeze funds upon match with relevant listings.

Conclusion

This advisory emphasizes the importance of FIs and DNFBPs maintaining robust AML/CFT measures during the COVID-19 pandemic, adapting to emerging risks, and reporting suspicious transactions in a timely manner.