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Dubai Financial Services Authority (DFSA): Contents

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  • AML 3 Interpretation and Terminology

    • AML 3.1 Interpretation

      • AML 3.1.1

        A reference in this module to "money laundering" in lower case includes a reference to terrorist financing and the financing of unlawful organisations, unless the context provides or implies otherwise.

        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]

        • AML 3.1.1 Guidance

          Chapter 6, section 6.2, of the General (GEN) module sets out how to interpret the Rulebook, including this module.

          Derived from RM117/2013 [VER9/07-13]

    • AML 3.2 Glossary for AML

      • AML 3.2 Guidance

        1. In order to make this module easier to read, some of the defined terms in this module have not had the initial letter of each word capitalised in the same way as in other Rulebook modules.
        2. Some of the defined terms and abbreviations in this module may also be found in the DFSA'sG Glossary module (GLO). Where a defined term in this module does not appear in Rule 3.2.1, a Relevant PersonG should look in GLO to find the meaning. In addition, AML Rule 9.3.2 of this module sets out definitions relevant to AML section 9.3 (Electronic fund transfers).
        3. In accordance with the interpretation provisions in the Regulatory LawG , a reference to legislation includes a reference to the legislation as amended or re-enacted from time to time.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

      • AML 3.2.1

        In this module, the terms and abbreviations listed in the table below have the following meanings:

        AML Means either "anti-money laundering" or this Anti-Money Laundering, Counter-Terrorist Financing and Sanctions module, depending on the context.
        Authorised PersonG Means an Authorised FirmG or an Authorised Market InstitutionG .
        Beneficial OwnerG

        (1) In relation to a customer, means a natural person who ultimately owns or controls the customer or a natural person on whose behalf a transaction is conducted or a business relationship is established, and includes:

        (a) in relation to a body corporate, a person referred to in AML Rule 7.3.3 (2) or (4);
        (b) in relation to a foundation, a person referred to in AML Rule 7.3.5 (2) or (3); and
        (c) in relation to a trust or other similar legal arrangement, a person referred to in AML Rule 7.3.6 (2) or (3).

        (2) In relation to a beneficiary of a life insurance or other similar policy, means a natural person who ultimately owns or controls the beneficiary.

        body corporateG

        Any body corporate, including a limited liability partnership, whether constituted under the law of the DIFCG , an EmirateG , the StateG or any other country or territory.

        BranchG Means a place of business within the DIFCG :
        (a) which has no separate legal personality;
        (b) which forms a legally dependant part of a Relevant PersonG whose principal place of business and head office is in a jurisdiction other than the DIFCG ; and
        (c) through which the Relevant PersonG carries on business in or from the DIFCG .
        Cabinet Resolution No. 38 of 2014 Means Federal Cabinet Resolution No. 38 of 2014 on the Implementing Regulations of Federal Law No. 4 of 2002.
        ClientG Has the meaning in chapter 2 of the Conduct of Business module.
        company service provider Means a person, not falling into parts (1)(a) to (e) or (g) of the definition of a DNFBPG that, by way of business, provides any of the following services to a customer:
        (a) acting as a formation agent of legal persons;
        (b) acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons;
        (c) providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement; or
        (d) acting as (or arranging for another person to act as) a nominee shareholder for another person.
        Contract of InsuranceG Has the meaning in GEN Rule A4.1.1.
        CTF Means counter-terrorist financing.
        customer Unless otherwise provided, means:
        (a) a person where, in relation to a business relationship between the person and a Relevant PersonG , there is a firm intention or commitment by each party to enter into a contractual relationship or where there is a firm commitment by each party to enter into a transaction, in connection with a product or service provided by the Relevant PersonG ;
        (b) a ClientG of an Authorised FirmG ;
        (c) a MemberG or prospective MemberG of, or an applicant for admission of SecuritiesG to trading on, an Authorised Market InstitutionG ;
        (d) in relation to a Single Family OfficeG , a member of the Single FamilyG ; or
        (e) a person with whom a Relevant PersonG is otherwise establishing or has established a business relationship.
        Customer Due DiligenceG (CDD) Means the measures referred to in AML section 7.3.
        Designated Non-Financial Business or ProfessionG (DNFBP) Means:
        (1) The following class of persons whose business or profession is carried on in or from the DIFCG :
        (a) a real estate developer or agency which carries out transactions with a customer involving the buying or selling of real property;
        (b) a dealer in precious metals or precious stones;
        [deleted]
        (d) a law firm, notary firm, or other independent legal business;
        (e) an accounting firm, audit firm or insolvency firm;
        (f) a company service provider; or
        (g) a Single Family OfficeG .
        (2) A person who is an Authorised PersonG or a Registered AuditorG is not a DNFBPG .
        DIFCG entity Means a legal person which is incorporated or registered in the DIFCG (excluding a registered BranchG ).
        Domestic FundG A FundG established or domiciled in the DIFCG .
        EmployeeG Means an individual:
        (a) who is employed or appointed by a person in connection with that person's business, whether under a contract of service or for services or otherwise; or
        (b) whose services, under an arrangement between that person and a third party, are placed at the disposal and under the control of that person.
        Enhanced Customer Due DiligenceG Means undertaking Customer Due DiligenceG and the enhanced measures under Rule 7.4.1.
        FATFG Means the Financial Action Task Force.G
        FATFG Recommendations Means the publication entitled the "International Standards on Combatting Money Laundering and the Financing of Terrorism and Proliferation" as published and amended from time to time by FATFG .
        Federal AML legislation Means all U.A.E Federal Laws and their implementing regulations relating to money laundering, terrorist financing and the financing of unlawful organisations, as well as sanctions compliance, including Federal Law No. 4 of 2002, Federal Law No. 7 of 2014 and Cabinet Resolution No. 38 of 2014.
        Federal Law No. 4 of 2002 Means U.A.EG Federal Law No. 4 of 2002 on Combating Money Laundering and Terrorist Financing.
        Federal Law No. 7 of 2014 Means U.A.E Federal Law No. 7 of 2014 on Combating Terrorism Offences.
        FID The Financial Intelligence Department of the U.A.E Central Bank.
        Financial InstitutionG A regulated or unregulated entity, whose activities are primarily financial in nature.
        Financial Services RegulatorG Means a regulator of financial services activities established in a jurisdiction other than the DIFC.
        foundation Means a foundation established under the DIFC Foundations LawG 2018 or under any other law.
        Governing BodyG Means the board of directors, partners, committee of management or other governing body of:
        (a) a Body CorporateG or PartnershipG ; or
        (b) an unincorporated association carrying on a trade or business, with or without a view to profit.
        GroupG Means a GroupG of entities which includes an entity (the 'first entity') and:
        (a) any parent of the first entity; and
        (b) any subsidiaries (direct or indirect) of the parent or parents in (a) or the first entity; or
        (c) for a legal person which is not a body corporate, refers to that person and any other associated legal persons who are in an equivalent relationship to that in (a) and (b).
        IMF The International Monetary Fund.
        International Organisation Means an organisation established by formal political agreement between member countries, where the agreement has the status of an international treaty, and the organisation is recognised in the law of countries which are members.
        Law Means the Regulatory Law.
        legal arrangement Means an express trust or any other similar legal arrangement.
        legal person Means any entity other than a natural person that can establish a customer relationship with a Relevant PersonG or otherwise own property. This can include companies, bodies corporate or unincorporate, foundations, anstalten, partnerships, associations, states and governments and other relevantly similar entities.
        MemberG A person admitted as a member of an Authorised Market InstitutionG in accordance with its Business Rules.
        MENAFATF The Middle East and North Africa Financial Action Task Force.
        Money Laundering Reporting OfficerG (MLRO) Means the person appointed by a Relevant PersonG pursuant to Rule 11.2.1(1).
        natural person Means an individual.
        OECD The Organisation for Economic Co-operation and Development.
        person Means a natural or legal person.
        Politically Exposed PersonG (PEP) Means a natural person (and includes, where relevant, a family member or close associate) who is or has been entrusted with a prominent public function, whether in the StateG or elsewhere, including but not limited to, a head of state or of government, senior politician, senior government, judicial or military official, ambassador, senior person in an International Organisation, senior executive of a state owned corporation, an important political party official, or a member of senior management or an individual who has been entrusted with similar functions such as a director or a deputy director.

        This definition does not include middle ranking or more junior individuals in the above categories.
        Registered AuditorG Has the meaning given to that term in the Regulatory LawG
        Regulated ExchangeG Means an exchange regulated by a Financial Services RegulatorG .
        Regulated Financial InstitutionG A person who does not hold a LicenceG but who is authorised in a jurisdiction other than the DIFCG to carry on any financial service by another Financial Services RegulatorG .
        Relevant PersonG Has the meaning given to that term in Rule 1.1.2.
        senior management Means:

        (1) In relation to a Relevant PersonG every member of the Relevant Person'sG executive management and includes:

        (a) for a DIFCG entity, every member of the Relevant Person'sG Governing BodyG ;
        (b) for a BranchG , the person or persons who control the day to day operations of the Relevant PersonG in the DIFCG and would include, at a minimum, the senior executive report or equivalent officer, such as the managing director; or
        (c) for a Registered AuditorG , every member of the Relevant Person'sG executive management in the U.A.E.G

        (2) In relation to a customer that is a body corporate, every member of the body corporate's Governing Body and the person or persons who control the day-to-day operations of the body corporate, including its senior executive officer, chief operating officer and chief financial officer.

        Shell Bank A bank that has no physical presence in the country in which it is incorporated or licensed and which is not affiliated with a regulated financial group that is subject to effective consolidated supervision.
        Simplified Customer Due DiligenceG Means Customer Due DiligenceG as modified under Rule 7.5.1.
        Single Family Has the meaning given to that term in the DIFCG Single Family OfficeG Regulations.
        Single Family OfficeG Has the meaning given to that term in the DIFCG Single Family OfficeG Regulations.
        source of funds Means the origin of funds which relate to a transaction or service and includes how such funds are connected to the source of wealth of a customer of Beneficial OwnerG .
        source of wealth Means how the global wealth or net worth of a customer or Beneficial OwnerG is or was acquired or accumulated.
        StateG Means the U.A.E.
        Suspicious Activity Report (SAR) Means a report in the prescribed format regarding suspicious activity (including a suspicious transaction) made to the FIDG under Rule 13.3.1(c).
        transaction Means any transaction undertaken by a Relevant PersonG for or on behalf of a customer in the course of carrying on a business in or from the DIFCG .
        unlawful organisation Means an organisation the establishment or activities of which have been declared to be criminal under Federal AML legislation.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM132/2014 (Made 21st August 2014). [VER10/06-14]
        [Amended] DFSA RM156/2015 (Made 9th December 2015) [VER35/02-16]
        [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
        [Amended] DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]