The Dubai Financial Services Authority (DFSA) just reissued an amended version of the AML/.CTF & Sanctions section of their Rulebook. Here’s the section about sanctions:
Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) 10 SANCTIONS AND OTHER INTERNATIONAL OBLIGATIONS
10.1.1 This chapter does not apply to a person meeting part (1) (b) or (c) of the definition
of a DNFBP.
10.2 Relevant United Nations resolutions and sanctions
(2) A Relevant Person must immediately notify the DFSA when it becomesA Relevant Person must establish and maintain effective systems and controls to obtain and make appropriate use of relevant resolutions or sanctions issued by the United Nations Security Council.aware that it is:
- (a) carrying on or about to carry on an activity;
- (b) holding or about to hold money or other assets; or
- (c) undertaking or about to undertake any other business whether or not arising from or in connection with (a) or (b);
for or on behalf of a person, where such carrying on, holding or undertaking constitutes or may constitute a contravention of a relevant sanction or resolution issued by the United Nations Security Council.
(3) A Relevant Person must ensure that the notification stipulated in (2) above includes the following information:
- (a) a description of the relevant activity in (2) (a), (b) or (c); and
- (b) the action proposed to be taken or that has been taken by the Relevant Person with regard to the matters specified in the notification.
- In relation to the term “make appropriate use” in Rule 10.2.1, this may mean that a Relevant Person cannot undertake a transaction for or on behalf of a person or that it may need to undertake further due diligence in respect of a person.
- Relevant resolutions or sanctions mentioned in Rule 10.2.1 may, among other things, relate to money laundering, terrorist financing or the financing of weapons of mass destruction or otherwise be relevant to the activities carried on by the Relevant Person. For example:
- a Relevant Person should exercise due care to ensure that it does not provide services to, or otherwise conduct business with, a person engaged in money laundering, terrorist financing or the financing of weapons of mass destruction; and
- an Authorised Market Institution should exercise due care to ensure that it does not facilitate fund raising activities or listings by persons engaged in money laundering or terrorist financing or financing of weapons of mass destruction.
Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) 10.3 Government, regulatory and international findings
10.3.1 (1)A Relevant Person must establish and maintain systems and controls to obtain and make appropriate use of any findings, recommendations, guidance, directives, resolutions, sanctions, notices or other conclusions issued by:
- (a) the government of the U.A.E. or any government departments in the U.A.E.;
- (b) the Central Bank of the U.A.E. or the AMLSCU;
- (c) FATF;
- (d) U.A.E. enforcement agencies; and
- (e) the DFSA,concerning the matters in (2).
(2) For the purposes of (1), the relevant matters are:
- (a) arrangements for preventing money laundering, terrorist financing or the financing of weapons of mass destruction in a particular country or jurisdiction, including any assessment of material deficiency against relevant countries in adopting international standards; and
- (b) the names of persons, groups, organisations or entities or any other body where suspicion of money laundering or terrorist financing or the financing of weapons of mass destruction exists.
- The purpose of this Rule is to ensure that a Relevant Person takes into consideration the broad range of tools used by competent authorities and international organisations to communicate AML/CTF risks to stakeholders.
- A Relevant Person should examine and pay special attention to any transactions or business relationship with persons located in countries or jurisdictions mentioned by the persons in Rule 10.3.1(a) to (e).
- Relevant Persons considering transactions or business relationships with persons located in countries or jurisdictions that have been identified as deficient, or against which the U.A.E. or the DFSA have outstanding advisories, should be aware of the background against which the assessments, or the specific recommendations have been made. These circumstances should be taken into account in respect of introduced business from such jurisdictions, and when receiving inward payments for existing customers or in respect of inter-bank transactions.
- The Relevant Person’s MLRO is not obliged to report all transactions from these countries or jurisdictions to the AMLSCU if they do not qualify as suspicious under Federal Law No. 4 of 2002. See chapter 13 on Suspicious Activity Reports.
- Transactions with counterparties located in countries or jurisdictions which are no longer identified as deficient or have been relieved from special scrutiny (for example, taken off sources mentioned in this Guidance) may nevertheless require attention which is higher than normal.
Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML)
- In order to assist Relevant Persons, the DFSA will, from time to time, publish U.A.E., FATF or other findings, guidance, directives or sanctions. However, the DFSA expects a Relevant Person to take its own steps in acquiring relevant information from various available sources. For example, a Relevant Person may obtain relevant information from the consolidated list of financial sanctions in the European Union Office, HM Treasury (United Kingdom) lists, and the Office of Foreign Assets Control (OFAC) of the United States Department of Treasury.
- In addition, the systems and controls mentioned in Rule 10.3.1 should be established and maintained by a Relevant Person taking into account its risk assessment under chapters 5 and 6. In relation to the term “make appropriate use” in Rule 10.3.1, this may mean that a Relevant Person cannot undertake a transaction for or on behalf of a person or that it may need to undertake further due diligence in respect of such a person.
- A Relevant Person should be proactive in obtaining and appropriately using available national and international information, for example, suspect lists or databases from credible public or private sources with regard to money laundering, including obtaining relevant information from sources mentioned in Guidance 6 above. The DFSA encourages Relevant Persons to perform checks against their customer databases and records for any names appearing on such lists and databases as well as to monitor transactions accordingly.
- The risk of terrorists entering the financial system can be reduced if Relevant Persons apply effective AML strategies, particularly in respect of CDD. Relevant Persons should assess which countries carry the highest risks and should conduct an analysis of transactions from countries or jurisdictions known to be a source of terrorist financing.
- The DFSA may require Relevant Persons to take any special measures it may prescribe with respect to certain types of transactions or accounts where the DFSA reasonably believes that any of the above may pose a money laundering risk to the DIFC.