Using the services of HLB HAMT can provide a protective shield against money laundering challenges for firms in the DIFC and related financial institutions in UAE.

1. ANTI-MONEY LAUNDERING
(AML) IN UAE
https://hlbhamt.com/

2. The UAE, and Dubai in particular, over the years, has been well established as one of
the leading financial hubs of the world. This financial activity, and the presence of
numerous local and international banking institutions, comes with and increased risk
of financial crime – most significant among which are money laundering and terrorist
funding. Everybody – from ordinary residents to large multinationals can be affected by
money laundering and fraud.
The UAE’s new regulation aims at offering recommendations that will assist financial
institutions in strengthening the compliance programme of anti-money laundering in
UAE. Using the services of HLB HAMT can provide a protective shield against money
laundering challenges for firms in the DIFC and related financial institutions.

3. DIFC TO TACKLE MONEY LAUNDERING
Dubai, amongst the most significant financial centers in the Middle East, welcomes a
variety of global corporations to the Dubai International Financial Centre (DIFC).
From its very establishment in 2004, the DIFC has developed to become one of the
finest financial hubs, employing numerous banking and financial organizations.
Dubai’s prominence also makes it a desirable prey for fraudsters looking to commit
fraud by taking advantage of the emirate’s wealth accumulation.

4. In the DIFC, the following actions are illegal:
1. Money laundering
 To act with the aim and awareness that the subject in question is the product of
wrongdoing
 Transform criminal funds with the intent of hiding or masking their unlawful origins, or
hiding or confusing the source of dirty money
 Obtain, utilize, or hold criminal proceeds
 Assist a money-laundering or criminal offender in avoiding imprisonment

5. 2. Bribing people those who are being investigated for questionable transactions by
relevant authorities
3. Financial support for unlawful entities
4. Terrorist support
A severe money laundering violation occurs when an individual:
 performs any of the aforementioned money-laundering acts while knowing that the
benefits are partially or entirely held by a terrorist organization/person, or with the aim to
sponsor a terrorist organization/person, even if the funds are not intended to be hidden or
disguised.
 Offers, gathers, arranges, or receives the illegal activities, explicitly or implicitly,
understanding that such profits will be used to undertake a terrorist crime, or to
purposefully dedicate such deeds on behalf of a terrorist organization/person while
understanding their real intention.

6. Operations that take place outside of the UAE might potentially be an issue of frustration
for DIFC-registered businesses. Legal liability may be imposed on such companies if:
 Any aspect of the money laundering process that took place inside or via the UAE
involves the DIFC Company.
 The reward of a money-laundering transaction is generated or was meant to be
completed in the UAE, entirely or substantially for the profit of the DIFC firm.
 A culprit assists or participates in a money-laundering offence that takes place
completely or partially in the UAE.

7. MEASURES TO STRENGTHEN AML/CFT
PROGRAMMES
The DIFC has its own regulatory structure in place to deal with the financial issues.
The Dubai Financial Services Authority (DFSA), which is in charge of preventing
money laundering and other financial crimes, oversees this framework. As a result,
financial institutions doing business in Dubai should be mindful of the financing
threats, as well as how to adhere with DFSA laws.
The DFSA mandates that businesses in the DIFC tackle money laundering in a risk-
based strategy. In reality, this implies that firms must create an AML/CFT programme
that is proportional to the money laundering challenges and incorporates the elements
listed below.

8.  Observation of transactions
Customers’ activities should be monitored for behaviour that might reveal money
laundering, such as activities over a particular limit.
 Checking
Customers should be screened for negative media coverage and their position as socially
exposed individuals, as well as against appropriate international sanctions lists.
 Officer in charge of compliance
Internal anti-money laundering (AML) programmes should be monitored by a compliance
officer who has adequate authority and experience to properly carry out their duties.
 Customer Due Diligence
Companies should implement the relevant due diligence processes and specify their scope,
taking into consideration the numerous risk factors as well as the findings of the national
risk management.

9. When businesses in the DIFC refuse to obey AML/CFT laws, the DFSA has the
authority to investigate the violations. As part of the inquiry, the DFSA may pursue a
spectrum of information, including acquiring accounts and documents and conducting
interviews with workers. When businesses fail to meet required compliance criteria,
the DFSA has the authority to impose penalties such as penalties, license
cancellations, or disciplinary actions.

10. ANTI-MONEY LAUNDERING/CFT
LEGISLATION IN THE UAE
The below state-adopted legislation addresses anti-money laundering and counter-
terrorist financing:
 Anti-Money Laundering and Counter-Terrorism Financing Federal Decree-Law No.
20 of 2018
 Federal Law No. 1 of 2004, Decree on Combating Terrorism Offences
 On Anti-Money Laundering and Combating the Financing of Terrorism and illegal
Organisations
The statutes listed above describe money laundering, as well as its predicate offences
and punishments. Banks and licensed financial institutions (LFIs) must implement the
use of Know Your Customer practices when taking on new customers or suffer huge and
massive penalties from the Central Bank and other responsible authorities.

11. AML Compliance Services: Conclusion
The UAE’s Ministry of Economy has created an anti-money laundering (AML)
department to supervise the monitoring of anti-money laundering and counter-
terrorist financing laws and regulations. The UAE has enacted extensive legislation
and is not shying away. The Ministry is planning to develop and execute the Financial
Action Task Force’s recommendations in all earnest.

12. CONTACT US
HLB HAMT
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates.
Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com