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The purpose of these Anti-Money Laundering and Combating the Financing of Terrorism and the Financing of Illegal Organisations Guidelines for Designated Non-Financial Businesses and Professions (DNFBPs) (Guidelines) is to provide guidance and assistance to supervised institutions that are DNFBPs, in order to assist their better understanding and effective performance of their statutory obligations under the legal and regulatory framework in force in the United Arab Emirates (UAE or State).
Specifically, and without prejudice to the definition of a DNFBP as provided for in the relevant legislative and regulatory framework of the State, they are applicable to all such natural and legal persons in the following categories:
In this phase, criminals attempt to introduce Funds or the Proceeds of Crime into the financial system using a variety of techniques or typologies:
Once the Funds or Proceeds are introduced, or placed, into the financial system, they can proceed to the next phase of the process; often, this is accomplished by placing the funds into circulation through formal financial institutions, and other legitimate businesses, both domestic and international. In this layering phase, criminals attempt to disguise the illicit nature of the Funds or Proceeds of Crime by engaging in transactions, or layers of transactions, which aim to conceal their origin. It Includes:
In this phase, criminals attempt to return, or integrate, their “laundered” Funds or the Proceeds of Crime back into the economy, or to use it to commit new criminal offences, through transactions or activities that appear to be legitimate.
DFNBPs should remain careful that their services are not being used either directly or indirectly to facilitate money laundering or the financing of terrorism or illegal organisations in any of the three stages described above.
used to assist with smuggling to another jurisdiction or to exploit low reporting requirements on currency exchange houses to minimize risk of detection – e.g., purchasing of traveller’s cheques to transport value to another jurisdiction
A method involving numerous transactions (deposits, withdrawals, transfers), often various people, high volumes of small transactions and sometimes numerous accounts to avoid detection threshold reporting obligations.
Used as instruments to access funds held in a financial institution, often in another jurisdiction
Avoiding the use of money or financial instruments in value transactions to avoid AML/CFT measures – e.g., a direct exchange of heroin for gold bullion.
to obscure the source of proceeds of crime to purchase negotiable instruments, often exploiting relatively low reporting requirements.
a technique to obscure the identity of persons controlling funds and exploit relatively low reporting requirements.
to move funds away from interdiction by domestic authorities and obscure the identity of persons controlling illicit funds.
can be for instance be used for money laundering when they have saving or investment features which may include the options for full or partial withdrawals or early surrenders.
The AML-CFT Law provides for the following sanctions against any DNFBPs, their managers or their employees, who fail to perform, whether purposely or through gross negligence, their statutory obligation to report a suspicion of money laundering or the financing of terrorism or of illegal organisations:
Mitigation of ML/FT Risks
The Elements of an AML/CFT Program:
Commonly referred to as the three lines of defence, the basic elements that must be addressed in an AML/ CFT program are
A few examples of potentially suspicious transaction types that DNFBPs should take into consideration include: