Financial Crime World

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Anti-Money Laundering (AML) Regulations and Know Your Customer (KYC) Requirements in the UAE

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The United Arab Emirates has implemented robust Anti-Money Laundering (AML) regulations and Know Your Customer (KYC) requirements to combat money laundering, terrorist financing, and other financial crimes.

AML Regulations

The UAE has enacted the AML-CFT Law and Decision, which requires Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) to implement strict compliance measures. These measures include:

  • Identifying, assessing, and understanding risks
  • Defining the scope of due diligence
  • Appointing compliance officers
  • Putting in place management systems to mitigate risks

Failure to report suspicious activities can result in imprisonment and fines ranging from AED 100,000 (approximately $27,200) to AED 1,000,000 (approximately $272,000). Non-compliance with other AML/CFT requirements can result in imprisonment or fines between AED 10,000 (approximately $2,720) and AED 100,000 (approximately $27,200).

KYC Requirements

To comply with KYC regulations, individual customers must provide:

  • ID or travel document
  • Proof of residential address

Companies must provide the following documents:

  • ID/travel documents for all shareholders with 25% and more shares
  • Proof of Operating Address in the UAE (utility bill or other bank statements from last three months)
  • Trade License or Certificate of Incorporation
  • Memorandum & Articles of Association
  • Resolution of the Board of Directors to open an account

goAML

goAML is a special application created by the UNODC to combat money laundering, terrorism financing, and other financial crimes. All FIs, DNFBPs, and Virtual Asset Service Providers (VASPs) are required to register on the goAML portal as part of their compliance procedures.

Other Points

  • The UAE has improved its AML policies and is no longer subject to increased monitoring by the Financial Action Task Force (FATF).
  • Sumsub offers a variety of solutions for companies to stay compliant with AML regulations in the UAE, including tailored verification checks.
  • Downloading the UAE Compliance Guidelines can provide insights into the country’s jurisdictions and legal requirements.

Note: This article provides general information on AML regulations and KYC requirements in the UAE. It is essential to consult with a qualified professional or regulatory authority for specific guidance and compliance requirements.