Anti-Money Laundering Advisory
Anti-Money Laundering (AML) Advisory
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Anti-Money Laundering (AML) Advisory
The UAE has certainly earned its place in the top 10 global financial centers with unprecedented growth and development in the financial sector. A major financial center in the Middle East, it is home to many international businesses and a dedicated economic zone known as the Dubai International Financial Center (DIFC).
In addition to the country’s overall economy, banks and financial institutions also benefit from the high concentration of money coming from foreign sources. However, this influx of big money makes the UAE, especially the city of Dubai, increasingly vulnerable to financial crime.
So, implementing a robust anti-money laundering program in your business has become more important, with increasingly stringent regulations against terrorist funding and money laundering imposed by the government.
Table of Contents
What is Anti-Money Laundering (AML) in UAE?
Anti-money laundering (AML) is a network of laws, regulations and procedures designed to detect efforts to disguise illicit funds as legitimate income. Money laundering seeks to conceal crimes ranging from petty tax evasion and drug trafficking to public corruption and the financing of groups designated as terrorist organizations.
AML legislation was a response to the growth of the financial industry, the lifting of international capital controls and the increasing ease of carrying out complex chains of financial transactions.
The UN High Level Panel estimated annual money laundering flows at $1.6 trillion, representing 2.7% of global GDP in 2020.
Anti-Money Laundering Challenges
Anti-money laundering regulations do not allow you to have a losing hand. Prevention of money laundering is a matter of national interest. It is not only necessary to save people from fraud, but it works as a preventive measure to counter-terrorist funding. That’s why our AML advisory company ensures efficiency to look at every aspect of the business to make it flawless.
AML challenges that a company may face:
- It is difficult to visualize all the risks that are associated with money laundering.
- The correct interpretation of anti-money laundering law and regulations is not a simple matter.
- With the rapid increase in the number of customers, it is difficult to putting a check and control each customer.
- When a company wishes to ensure AML compliance itself or turns to an incompetent AML consultancy, there is a chance that poor KYC (Know Your Customer) standards will be followed. These standards have way out that allow customers to hide their true identity. Identity theft can also occur when proper standards are not followed.
- When your company has its subsidiaries in more than one country, it is difficult to have a harmonious process for AML compliance. This is due to changes in regulations by nation.
- Customers do not have simplified funds and sources of income. However, to be completely sure, it is necessary to find all finances without compromise. Companies and businesses generally overlook this requirement because it is time-consuming.
- If the data capture and verification process is not up to the mark, it may never reveal the true identity and finances of the person you are dealing with.
DIFC and UAE Money Laundering Compliance
According to FATF recommendations, the DFSA requires DIFC companies to take a risk-based approach to money laundering in UAE. In practice, this means that they must develop an AML/CFT program that is commensurate with the money laundering risks they face and includes the following measures and processes:
- Customer due diligence: Businesses should put in place appropriate CDD measures to verify the identity of their clients and ensure they are being truthful about the nature of their business. Customers who pose a higher risk of money laundering should be subject to enhanced due diligence (EDD) measures.
- Transaction monitoring: Businesses should monitor client’s transactions and accounts for activity that could indicate money laundering, such as suspicious transaction patterns, transactions exceeding a certain threshold, or transactions involving high-risk nations.
- Screening: Businesses should screen their clients for adverse media and politically exposed person status, as well as relevant international sanctions lists.
- Compliance Officer: Internal AML programs should be overseen by a compliance officer, also known as a money laundering reporting officer (MLRO), who has sufficient authority and expertise to carry out his role effectively.
In case, when firms within the DIFC detect suspicious activities, such as AML in Dubai. They should submit a suspicious activity report to the Central Bank Dubai and to the DFSA by Supervised Firm Contact Form.
Importance of UAE Anti-Money Laundering Compliance
Financial institutions are realizing the importance of anti-money laundering compliance due to increasing regulatory scrutiny. Implementing an AML compliance program is complex and varied, but once it is followed, it has an enormously positive effect on a company’s internal financial controls as well as the country’s economy. However, the implementation of AML and the risk approach of selecting money laundering tools and techniques is a major challenge for financial institutions.
As a country, the UAE is deeply committed to preventing money laundering and the financing of terrorism and illegal organizations. The authorities have created a law and framework to detect, prevent and deter financial crimes. Authorities are constantly working to expand and improve the capabilities of law enforcement institutions. The Government is also improving the effectiveness of its efforts by adhering to internationally recognized anti-money laundering standards and procedures recommended by the FATF, the United Nations, the International Monetary Fund and the World Bank.
Some of the benefits are listed below:
- Stay on the right side of the law and avoid legal troubles
- Ensure that the Dubai remains a safe place for all investors
- Prevent the branching and financing of terrorist organizations
- Improve your trustworthiness, credibility and goodwill among your customers
- Attract more investors and lenders
- Build continuous relationships with customer and other financial institutions
- Make sure you always maintain 100% compliance
Beyond View Services of AML in UAE
Since the prevention of money laundering is a matter of national interest, it does not only protect people from fraud, but acts as a deterrent against the financing of terrorism. Our expert AML consulting team ensures efficiency in analyzing every aspect of your business to make it flawless. We will help you with the following services:
- Consultation for AML Compliance
- Documentation of AML/CFT Policies
- Set up of in-house AML Compliance Department
- Creation of an Efficient Personalized Manual for AML/CTF Checks
- Employee AML Training
- Managed KYC and client Due Diligence Service
- AML Enhanced Due Diligence
- AML/CTF Compliance Audit
- AML Mystery Shopping
- AML Software Consultancy
- AML Customer Risk Assessment Service
- AML Compliance Agent Service
- AML Transaction Monitoring and Alert Review
- AML Records Review and Evidence Analytics
Why partner with us?
It is difficult for businesses to keep up with changing anti-money laundering regulatory conditions. Furthermore, a minor failure on your part can result in a huge fine, loss of reputation and even legal consequences. Therefore, the need of the anti-money laundering consulting service comes.
Beyond View is one of the most trustworthy companies who’s offering Anti-Money Laundering advisory services which helps to analyze systems and develop effective solutions. This reduces the risk of your company becoming a victim of employee, supplier or external corporate and financial crimes. Our unsurpassed investigative capabilities and AML services, global presence and longstanding reputation for independence and integrity make us uniquely qualified to address regulatory challenges.