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(2 versions)
Jul 14 2013 - Jan 31 2017Feb 1 2017 onwards

AML 4.1.1 Guidance

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. Rule 4.1.1 requires a Relevant PersonG to adopt an approach to AML which is proportionate to the risks. This is called the "risk-based approach" ("RBA") and is illustrated in figure 1 above. The DFSAG expects the RBA to be a key part of the Relevant Person'sG money laundering compliance culture and to cascade down from the senior management to the rest of the organisation. Embedding the RBA within its business allows a Relevant PersonG to make decisions and allocate AML resources in the most efficient and effective way.
2. In implementing the RBA, a Relevant PersonG is expected to have in place processes to identify and assess money laundering risks. After the risk assessment, the Relevant PersonG is expected to monitor, manage and mitigate the risks in a way that is proportionate to the Relevant Person's exposure to those money laundering risks. The general principle is that where there are higher risks of money laundering, a Relevant PersonG is required to take enhanced measures to manage and mitigate those risks, and that, correspondingly, when the risks are lower, simplified measures are permitted.
3. The RBA discourages a "tick-box" approach to AML. Instead a Relevant PersonG is required to assess relevant money laundering risks and adopt a proportionate response to such risks. The outcome of using the RBA is akin to using a sliding scale, where the type of CDDG undertaken on each customer will ultimately depend on the outcome of the risk-based assessment made of such customer under this chapter.
4. The Rules regarding record-keeping for the purposes of this module are in section 14.4. These Rules apply in relation to Rule 4.1.1(b)(iii).
Derived from RM117/2013 [VER9/07-13]
[Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]