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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) [VER16/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
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  • AML 7.2 Timing of Customer Due Diligence

    • AML 7.2.1

      (1) A Relevant PersonG must except as otherwise provided in AML Rule 7.2.2 or in AML section 7.3:
      (a) undertake the appropriate Customer Due DiligenceG under AML Rule 7.3.1(1)(a) to (c) and AML section 7.3 when it is establishing a business relationship with a customer; and
      (b) undertake the appropriate Customer Due DiligenceG under AML Rule 7.3.1(1)(d) after establishing a business relationship with a customer.
      (2) A Relevant PersonG must also undertake appropriate Customer Due DiligenceG if, at any time:
      (a) in relation to an existing customer, it doubts the veracity or adequacy of documents, data or information obtained for the purposes of Customer Due DiligenceG ;
      (b) it suspects money laundering in relation to a person; or
      (c) there is a change in risk-rating of the customer, or it is otherwise warranted by a change in circumstances of the customer.
      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]

    • Establishing a business relationship before verification

      • AML 7.2.2

        (1) A Relevant PersonG may establish a business relationship with a customer before completing the verification required by AML Rule 7.3.1 if the following conditions are met:
        (a) deferral of the verification of the customer or Beneficial OwnerG is necessary in order not to interrupt the normal conduct of a business relationship;
        (b) there is little risk of money laundering occurring and any such risks identified can be effectively managed by the Relevant PersonG ;
        (c) in relation to a bank account opening, there are adequate safeguards in place to ensure that the account is not closed and transactions are not carried out by or on behalf of the account holder (including any payment from the account to the account holder) before verification has been completed; and
        (d) subject to (2), the relevant verification is completed as soon as reasonably practicable and in any event no later than 30 days after the establishment of a business relationship.
        (2) Where a Relevant PersonG is not reasonably able to comply with the 30 day requirement in (1)(d), it must, prior to the end of the 30 day period:
        (a) document the reason for its non-compliance;
        (b) complete the verification in (1) as soon as possible; and
        (c) record the non-compliance event in its annual AML Return.
        (3) The DFSAG may specify a period within which a Relevant PersonG must complete the verification required by (1) failing which the DFSAG may direct the Relevant PersonG to cease any business relationship with the customer.
        (4) A Relevant PersonG must ensure that its AML systems and controls referred to in AML Rule 5.2.1 include risk management policies and procedures concerning the conditions under which business relationships may be established with a customer before completing verification.
        Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

        • AML 7.2.2 Guidance

          1. For the purposes of AML Rule 7.2.1(2)(a), examples of situations which might lead a Relevant PersonG to have doubts about the veracity or adequacy of documents, data or information previously obtained could be where there is a suspicion of money laundering in relation to that customer, where there is a material change in the way that the customer's account is operated, which is not consistent with the customer's business profile, or where it appears to the Relevant PersonG that a person other than the customer is the real customer.
          2. In AML Rule 7.2.2(1)(a), situations that the Relevant PersonG may take into account include, for example, accepting subscription monies during a short offer period or executing a time critical transaction, which if not executed immediately, would or may cause a customer to incur a financial loss due to price movement or loss of opportunity or when a customer seeks immediate insurance cover.
          3. When complying with AML Rule 7.2.1, a Relevant PersonG should also, where relevant, consider AML Rule 7.7.1 regarding failure to conduct or complete CDDG and chapter 13 regarding SARs and tipping off.
          4. For the purposes of AML Rule 7.2.2(1)(d), the DFSAG considers that in most situations as soon as reasonably practicable would be within 30 days after the establishment of a business relationship. However, it will depend on the nature of the customer business relationship.
          Derived from RM117/2013 [VER9/07-13]
          [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]