CORPORATE COMPLIANCE SERVICES

AML & DUE DILIGENCE

Introduction

Corporate Service Providers (CSPs) in the UAE are legally mandated to engage in ongoing due diligence and comply with Anti-Money Laundering (AML) regulations pertaining to their clientele. This requirement underscores the UAE’s alignment with global efforts spearheaded by organizations like the Financial Action Task Force (FATF) to combat money laundering and terrorism financing. The regulatory landscape for AML and continued due diligence is enshrined under Federal Decree-Law No. (20) of 2018.

Legislative Framework and Procedural Obligations

Federal Decree-Law No. (20) of 2018 mandates CSPs, among other financial and designated non-financial businesses, to implement robust AML/CFT (Countering the Financing of Terrorism) measures. It encompasses customer due diligence, continuous monitoring, suspicious transaction reporting, and record-keeping. Cabinet Decision No. (10) of 2019 elaborates on the implementation of Decree Law No. (20) of 2018, detailing the AML/CFT procedural obligations, emphasizing the duty of CSPs to carry out ongoing due diligence and report any suspicious activities.

Guidance from the Ministry of Economy

As the supervisory authority, the Ministry of Economy issues guidelines and updates to ensure adherence to AML/CFT standards, providing clarity on compliance expectations for CSPs. Compliance monitoring falls under the purview of the UAE Ministry of Economy and entities like the Financial Intelligence Unit (FIU). To fulfill these obligations, CSPs are required to establish comprehensive AML/CFT compliance frameworks.

Compliance Measures and Risks

Non-compliance poses significant risks, including monetary fines, license revocation, or other disciplinary measures. In light of the critical role these regulations play in preserving the UAE’s financial system’s integrity, CSPs must ensure the effectiveness of their compliance programs. The Ministry of Economy also mandates that entities undergo thorough audits to verify adherence to AML regulations and other relevant laws, reflecting the accuracy of KYC and AML submissions as per Federal Decree-law No. (20) of 2018.

Our Comprehensive AML & Due Diligence Services

Our services extend to comprehensive file management, adopting a holistic strategy that not only ensures legal compliance but also promotes operational excellence. Adhering to these regulations is a continuous requirement, essential to maintaining your business’s legal and operational integrity. Annual renewals are indispensable for ensuring ongoing compliance, highlighting the non-negotiable nature of these legal responsibilities for business sustainability in the UAE. Our guidance on AML and ongoing due diligence processes is grounded in the stringent guidelines and regulations mandated by the UAE’s Ministry of Economy, ensuring alignment with the highest standards of financial integrity.

The information provided does not constitute a direct or implied recommendation or endorsement of any strategy, decision, or action. Clients are encouraged to consult with the tax, legal, or professional advisors to determine the applicability of the information to their specific circumstances. Europe Emirates Group expressly disclaims any liability for errors or omissions in this information or for any loss or damage suffered by any person as a result of reliance on the information provided. Use of and reliance on the information is at the user’s own risk.