UAE Federal Law No 20 of 2018 on Anti Money Laundering (AML) was introduced in the UAE for combating the financing terrorism and illegal organization. The law enforced responsibilities on DNFBP to tackle Money Laundering. DNFBP includes Broker and Real Estate Agent, Dealers in Precious Metal and precious stones, Legal professionals, Independent accountants and provider of corporate services and trusts.
Duties and responsibilities of DNFBP: Appointment of compliance officer, Performance customer due diligence (CDD), Conducting screening for existing and new customers, Suspicious Transaction report (STR) to Financials Intelligence Unit (FIU), Keep records for Five years, ensure all compliance related to AML.
To fulfill the compliances, DNFBPs should ensure that they have adequate internal policies, procedures and controls in place.
Procedures for Dealers in Precious Metals& Stones Licensed in, UAE
Transactions with resident individuals / Non Resident Individuals:
Cash transactions equal to or exceeding AED. 55,000
Entities & Companies:
Cash transactions or through Wire transfer equal to or exceeding AED. 55,000
Need to receive & Submit
- Emirate ID ‘or’ Passport, ID
- If transaction with entities / companies then Trade License, Emirate ID and passport of representing the company
- Register the information “ Dealers in Precious Metals and Stones Report” (DPMSR”) to FIU through GOAML plat form.
- DPMSR report in additional submission to STR and other compliances report.
- Documents need to maintain minimum Five years.
Red Flag – Dealers in Precious Metals& Stones:
“Red Flag is indications that Pinpoint involvement of any fraud or suspicious activities in a financial transaction”
Below few Red Flags in Dealers in Precious Metals& Stones Transaction:
- Customer drastically increasing purchase of gold for no apparent reason
- Multiple transaction over short period
- Transfer between associates no proper reason
- Customer occupations inconsistent business
- Customer with not proper address & mail etc.,
- Customer requesting a refiner to turn gold into bullion
- Changes business name & address frequently
- Transactions with shell companies
- Many companies registered at one address
- Cash payment for high value items
- Wrong details on customs declaration form
- Gold prices are higher than those of the local gold market
- Fund transfer and withdrawal immediately
- Sales proceeds send to unknown third party
- Business without proper License etc.,
If you are looking for Anti Money Laundering (AML) Registration, customer due diligence support, Suspicious Transaction report (STR) to Financials Intelligence Unit (FIU) etc., related to DNFBPs please contact us.: Singiri & Co., Dubai, UAE. 00971 589 320 410 / 411
