Dubai: Banks and licensed financial institutions (LFIs) providing financial services to real estate, precious metals and stones businesses are required to specifically assess money laundering and financing of terrorism risks, according to Central Bank of UAE.
The Central Bank of the UAE (CBUAE) has issued a new Guidance on anti-money laundering and combatting the financing of terrorism (AML/CFT) for its licensed financial institutions (LFIs) which provide services to real estate and precious metals and stones sectors.
“LFIs providing services to real estate and precious metals and stones sectors specifically should assess the associated money laundering and terrorist financing risks and develop an effective AML/CFT programme that encompasses a competent compliance officer and provides training for LFIs’ employees on said risks,” CBUAE said in a statment.
The central bank guidance, which came into effect on 20 June, will assist the understanding and mitigation of risks as well as the effective implementation by LFIs of their statutory AML/CFT obligations, as outlined in Federal Decree-Law No. (20) of 2018 on AML/CFT and the Cabinet Decision No. (10) of 2019.
The Guidance takes also into account the standards and guidance issued by Financial Action Task Force (FATF).
“A critical part of CBUAE’s mandate is to ensure that all licensed financial institutions have a deep comprehension of their role in mitigating and addressing the risk of illicit activities in the UAE’s financial system. This Guidance serves as a key point of reference for those providing services to real estate and precious metals and stones sectors,” said Khaled Mohamed Balama, Governor of the CBUAE.
As stipulated in the Guidance, for all customer dealings, LFIs are required to perform appropriate customer due diligence and report any behaviour that they reasonably suspect may be linked to money laundering, financing of terrorism or a criminal offence by submitting suspicious activity reports directly to the UAE’s Financial Intelligence Unit using the “goAML” portal.