UAE AML/CFT/CPF Guidance for DNFBPs
- Issuing authority
- Central Bank of the United Arab Emirates (CBUAE)
- Effective date
- Effective from 16 June 2021.
- Scope
- CBUAE-supervised Licensed Financial Institutions (LFIs) providing services to customers in the real estate and precious metals and stones sectors.
Quick Summary
This CBUAE guidance explains how banks and other Licensed Financial Institutions should identify and manage money laundering and terrorist financing risks when providing services to businesses and customers operating in the real estate and precious metals and stones sectors. Both sectors can be attractive for illicit finance because they involve high-value assets that can be used to store or transfer wealth. The guidance therefore expects financial institutions to understand these sector-specific risks and apply appropriate risk-based AML/CFT controls.
Who does it apply to?
- Banks
- Payment service providers
- Insurance businesses
- Other Licensed Financial Institutions
What it means
This guidance tells financial institutions how to manage the risks of having certain businesses as customers. For example, if a bank provides an account to a precious-metals dealer, it should understand the nature of the dealer's business, the regulatory environment it operates in, expected transaction activity and relevant risks. Similarly, financial institutions dealing with real-estate businesses should consider risks arising from high-value transactions, complex ownership structures and the movement or storage of wealth through property.