Ultimate Purpose of AML

The ultimate purpose of these measures is to establish a reliable paper trail of business relationships and transactions, and to trace the true beneficial ownership and movement of assets, in order to prevent DPMS from being exploited for the purposes of money laundering and/or the financing of terrorism, and to aid the Competent Authorities of the State by reporting suspicious transactions

Cabinet Decision No. (10) of 2019

Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation of Decree Law No. (20) of 2018 On Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations (the “AML-CFT Decision”) identifies dealers in precious metals and precious stones (DPMS)1 as Designated Non-

Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation of Decree Law No. (20) of 2018 On Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organization’s (the “AML-CFT Decision”) identifies dealers in precious metals and precious stones (DPMS)1 as Designated Non-Financial Business and Professions (DNFBPs), when they engage in carrying out any single monetary transaction, or several transactions which appear to be interrelated, whose value is equal to or greater than AED 55,000,2 and subjects them to specific AML/CFT obligations under the AML/CFT legislative and regulatory framework of the United Arab Emirates.

Cabinet Decision no. (16) of 2021 Regarding the Unified list of the Violations and Administrative Fines

Cabinet Decision no. (16) of 2021 Regarding the Unified list of the Violations and Administrative Fines for the Said Violations of Measures to combat Money Laundering and Terrorism financing that are subject to the supervision of the Ministry of Justice and the Ministry of Economy

Maximum Fines for UAE AML Violations

UAE Anti Money Laundering (AML) Administrative Penalties / Fine AED. 50,000/-

• Failure to undertake the actions and procedures necessary to mitigate the risks identified based on the results of the national risk assessment or the self- assessment process given the nature and scale of the violator’s business.
• Failure to implement internal policies, procedures and controls within the facility aimed at combating crime or preventing involvement in suspicious business relationships.
• Failure to take the necessary simplified due diligence measures to manage low risks.
• Failure to undertake the necessary measures to understand the purpose to the business relationship and its nature, or the failure to acquire any information pertaining to its purpose when needed.
• Failure to undertake the necessary measures to understand the nature of the customer’s business, the ownership structure of his/her business, and the extent to which the customer has control over that business.
• Failure to undertake the due diligence measures pertaining to the ongoing supervision of customers while conducting the business relationship.
• Failure to appoint a compliance officer.
• Failure to create records that keep track of financial transactions with the customers in an organized manner, which prevents data analysis and tracking of financial transactions.
• Failure to keep records and documents related to the financial transactions for a period of five years from the date of concluding the transaction or terminating the business relationship with the customer, or from the date of completion of the inspection for the customer’s facilities.
• Failure to make all the information pertaining to the customer due to diligence, ongoing supervision, and the results of their analysis, record, files, documents, correspondence and forms available to the competent authorities upon request.
• Failure to provide training for the facility’s employees on combating money laundering and the financing of terrorism.

UAE Anti Money Laundering (AML) Administrative Penalties / Fine AED. 100,000/-

• Failure to undertake the actions and procedures necessary to identify the risks associated with the crime in the violator’s field of work.
• Failure to identify and assess the risks that may arise in the violator’s field of work when developing the services that the violator offers or when conducting new professional practice through its facility.
• Failure to undertake the necessary customer due diligence measures before establishing the business relationship or resuming a business relationship or performing a transaction under the customer’s name or in his/her favor. Failure to verify the identity of the customer and the real beneficiary or their representative using documents or data collected from reliable and independent sources before or while establishing a business relationship or opening an account or prior to performing a transaction for a customer with whom no business relationship has been established.
• Delay in notifying the financial intelligence unit of the suspicious transaction report in case there is suspicion or if there are reasonable grounds to suspect that the business relationship with the customer is in the whole or in part linked to the crime, or that the customer’s fund that are subjected to the business relationship are in fact proceeds of a crime or were used in committing a crime.
• Failure to conduct due to diligence measures on politically exposed persons before establishing or continuing a business relationship with such customers.
• Failure to create records for keeping track of financial transactions with customers.

UAE Anti Money Laundering (AML) Administrative Penalties / Fine AED. 200,000/-

• Failure to take necessary enhanced due diligence measures to manage high risk.
• Failure to notify the financial intelligence unit of the suspicious transaction when the customer due diligence measures were not taken before establishing or continuing the business relationship with the customer or performing a transaction for the customer or under his/her name.
• Failure to provide the financial intelligence unit with the additional information it requires regarding the matter reported in the suspicious transaction report.
• Disclosing, directly or indirectly to customers or any other person(s) that they have reported or intending to report a suspicious transaction.
• Failure to implement the measures prescribed by the national committee for combating money laundering and the financing of terrorism and illegal organizations with respect to customers from high-risk countries.

UAE Anti Money Laundering (AML) Administrative Penalties / Fine AED. 1,000,000/-

• Dealing with shell bank in any way.
• Opening or maintaining bank accounts using pseudonyms, fictitious names or numbered accounts without account holder’s name.
• Failure to take the necessary measures regarding customers included in the international or domestic sanctions list before establishing or continuing a business relationship with those customers.  

What will if UAE AML Volitions are repeat:

The Ministry may Double the Fine on the violator if the violation is repeated

Is UAE AML Penalties / fines being Uphold, Replace, Cancel, withdrawn, modify:

Violating party may appeal to minister on imposing of fine within 15 days from the date of being notified / informed of the decision. The Ministry upon reviewing grievance Uphold, Replace and Cancel. Failure to respond to the grievances within 30 days from date of submitting will be considered as Grievance is dismissed