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Dubai Financial Services Authority (DFSA): Contents

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Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) [VER15/07-18]
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  Versions
(1 version)
 
Oct 29 2018 onwards

AML 6.1.2



Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) When assessing if there is a high risk of money laundering in a particular situation, a Relevant PersonG must take into account, among other things:
(a) customer risk factors, including whether:
(i) the business relationship is conducted in unusual circumstances;
(ii) the customer is resident, established or registered in a geographical area of high risk (as set out in paragraph (c));
(iii) the customer is a legal person or legal arrangement that is a vehicle for holding personal assets;
(iv) the customer is a company that has nominee shareholders or shares in bearer form;
(v) the customer is a business that is cash intensive, such as a business that receives a majority of its revenue in cash; and
(vi) the corporate structure of the customer is unusual or excessively complex given the nature of the business;
(b) product, service, transaction or delivery channel risk factors, including whether:
(i) the service involves private banking;
(ii) the product, service or transaction is one that might favour anonymity;
(iii) the situation involves non face-to-face business relationships or transactions, without certain safeguards, such as electronic signatures;
(iv) payments will be received from unknown or unassociated third parties;
(v) new products and new business practices are involved, including new delivery mechanisms or the use of new or developing technologies for both new and pre-existing products; and
(vi) the service involves the provision of nominee directors, nominee shareholders or shadow directors, or the formation of companies in another country; and
(c) geographical risk factors, including:
(i) countries identified in reports by credible sources, such as mutual evaluations, detailed assessment reports or follow-up reports, as:
(A) not having effective systems to counter money laundering; or
(B) not implementing requirements to counter money laundering that are consistent with FATFG Recommendations;
(ii) countries identified by credible sources as having significant levels of corruption or other criminal activity, such as terrorism, money laundering or the production and supply of illicit drugs;
(iii) countries subject to sanctions, embargos or similar measures issued by, for example, the United Nations or the State;
(iv) countries providing funding or support for terrorism; and
(v) countries that have organisations operating within their territory that have been designated by the State, other countries or International Organisations as terrorist organisations.
(2) For the purposes of (1)(c), a credible source includes, but is not limited to, FATFG , the IMF, the World Bank, the OECD and other International Organisations.
(3) When assessing the risk factors referred to in (1), Relevant PersonsG must bear in mind that the presence of one or more risk factors may not always indicate a high risk of money laundering in a particular situation.
Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]