Compliance Services
Keep your business running smoothly and legally with TFLC Compliance Services. Our skilled staff offer full compliance services, ensuring you stay compliant in challenging regulatory environments and have correct records updated.
The Cabinet Decision No. 10 of 2019 implementing the federal Decree No. 20 of 2018 has raised the effectiveness of the AML / CFT legal and institutional framework of the nation, in line with the FATF requirements and recommendations.
How does TFLC ensure that all significant factors are covered for an effective GoAML CFT Compliance Program?
As required by UAE’s anti-money laundering (AML) and countering financing of terrorism (CFT) legislations, we ensure that all the critical factors are addressed by a robust GoAML CFT Compliance Program. Our risk assessment methodology is followed by screening of transactions, customer due diligence (CDD), and suspicious activity reports (SAR). We help organizations get themselves registered in the GoAML portal to enable them to achieve their regulatory objectives within the stipulated time frame. We also offer audit support, policy development, and employee training to enhance AML processes. With strict compliance of all UAE financial regulations and laws, we help companies avoid financial crimes, mitigate risks, and exercise regulatory integrity through effective internal controls and real-time surveillance.
| Financial Institutions | DNFBPs |
|---|---|
| Receiving deposits and other funds or providing credit facilities | Dealers in Precious Metals |
| Private banking service | Brokers and Real Estate agents |
| Securities, finance and financial leasing | Independent Legal Professionals and Accountants |
| Currency exchange and money transfer | Trusts and Corporate Service Providers |
| Stored value service, electronic payments for retail and digital cash | Law firms and legal Consultants |
| Preparing and marketing financial activities Insurance transactions | Family Offices |
AML /CFT Compliance Services
Most Important Elements For an Effective AML/CFT Compliance Services
1. Risk-Based Approach (RBA)
There should be a Risk-Based Approach (RBA) towards the identification and management of terrorist financing and money laundering risk. Firms need to:
- Risk-assess business relationships, transactions, and customers.
- Improve controls and monitoring on high-risk customers, geographies, and sectors
- Politically exposed individuals (PEPs), high-net-worth individuals, and complex ownership companies Due Diligence (EDD)
2. Know Your Customer (KYC) and Customer Due Diligence (CDD)
KYC and CDD procedures are the initial line of defense against money laundering. Firms must:
- Identify the customer prior to onboarding.
- Know the nature and purpose of the customer relationship.
- Ongoing monitoring of customers’ activity.
- Perform EDD on high-risk or suspicious accounts.
- Ineffective KYC/CDD can lead to reputational loss, legal consequences, and regulatory penalties.
3. Suspicious Transaction Reporting (STR) through goAML
The UAE’s certified suspicious transaction reporting system is goAML, which is administered by the Financial Intelligence Unit (FIU). Organizations must:
- Report and classify STRs and SARs.
- File reports with the FIU through goAML within the given time limit.
- Maintain STRs and SARs for five years.
- Educate staff in efficient identification and reporting of suspicious transactions.Failure to report can incur hefty financial fines and business restrictions.
4. Internal Controls and Compliance Program
A well-crafted internal AML/CFT compliance Services program guarantees regulatory compliance. Companies should:
- Appoint an AML/CFT Compliance Officer.
- Formulate internal AML compliance policies and procedures.
- Institute automated monitoring systems for suspicious transactions.
- Institute automated monitoring systems for suspicious transactions.
- Regularly audit and conduct independent compliance reviews.
An inefficient internal control system increases the risk of regulatory non-compliance and susceptibility to financial crime.
5. Record-Keeping and Data Retention
Record-keeping plays a crucial role in regulatory audits and investigations. Organizations should:
- Keep KYC information, transaction details, risk assessment, and due diligence records for a minimum of five years.
- Store records in a readily accessible form at the request of the regulatory agencies.
- Ensure safe storage and retrieval centers for data to avoid misuse by unauthorized persons.
- Slackness guidelines in record maintenance precipitate regulatory fines and business inefficiencies.
6. Ultimate Beneficial Ownership (UBO) Disclosure
To ensure enhanced transparency in finances, companies are required to:
- Identify and make disclosure of their Ultimate Beneficial Owners (UBOs) to the authorities.
- Confirm identity and source of funds of UBO.
- Track changes in ownership trends that may suggest suspicious transactions.
UBO compliance closes the door on shell companies and secret financial networks from conducting criminal activity.
7. Sanctions Screening and Compliance
Companies are required to be compliant with:
- UN Security Council Sanctions.
- UAE-specific AML/CFT sanctions lists.
- Financial crime watchlists in order to prevent transactions with sanctioned parties.
- Financial crime watchlists in order to prevent transactions with sanctioned parties.
Sanctions screening technology must be part of compliance programs to allow for real-time tracking and notifications.
8. Staff Training and Awareness
Educated staff is the pillar of sound AML/CFT compliance services. Companies must:
- Provide periodic AML/CFT training to staff.
- Educate staff on detecting red flags, reporting suspicious transactions, and regulatory requirements.
- Refresh training programs with new rules and evolving trends in financial crime.
Compliance culture and lower risk of human error are achieved with regular training.
Penalties for Failure to Comply
Business entities that fail to comply with AML/CFT compliance services under Cabinet Decision No. 10 of 2019 will face:
- Fines of AED 50,000 to AED 50,000,000.
- Suspension or revocation of business licenses.
- Criminal prosecution of in-charge parties.
As a way of evading penalties, businesses are required to strictly adhere to AML/CFT compliance services
Conclusion
The Cabinet Resolution No. 10 of 2019, giving effect to Federal Decree No. 20 of 2018, has enhanced the UAE’s AML/CFT system in line with FATF expectations. Businesses have to apply a robust compliance services program, e.g., KYC/CDD, risk-based reviews, transaction screening, suspicious transactions reporting through goAML, record-keeping, and employee education.
Being totally compliant helps companies minimize risks associated with financial crime, steer clear of sanctions imposed by the regulatory authorities, and enhance the UAE’s financial stability.