Home   Browse contents   View updates   Search  
     Quick search
Go
   

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
Archive

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • AML 7.5 Simplified customer due diligence

    • AML 7.5.1

      (1) Where a Relevant PersonG is permitted to undertake Simplified Customer Due DiligenceG under AML Rule 7.1.1(2), modification of AML Rule 7.3.1 may include:
      (a) verifying the identity of the customer and any Beneficial OwnersG after the establishment of the business relationship under AML Rule 7.2.1(3);
      (b) deciding to reduce the frequency of, or as appropriate not undertake, customer identification updates;
      (c) deciding not to verify an identification document other than by requesting a copy;
      (d) reducing the degree of on-going monitoring of transactions, based on a reasonable monetary threshold or on the nature of the transaction; or
      (e) not collecting specific information or carrying out specific measures to understand the purpose and intended nature of the business relationship, but infering such purpose and nature from the type of transactions or business relationship established.
      (2) The modification in (1) must be proportionate to the customer's money laundering risks.
      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 7.5.1 Guidance

        1. AML Rule 7.5.1(1) provides examples of Simplified CDDG measures. Other measures may also be used by a Relevant PersonG to modify CDDG in accordance with the customer risks.
        2. A Relevant PersonG should not use a "one size fits all" approach for all its low risk customers. Notwithstanding that the risks may be low for all such customers, the degree of CDDG undertaken needs to be proportionate to the specific risks identified on a case by case basis.
        3. A Relevant PersonG is not required to identify or verify Beneficial OwnersG for retail investment funds which are widely held and for investment funds where the investor invests via pension contributions.
        4. An example of circumstances where a Relevant PersonG might reasonably reduce the frequency of or, as appropriate, eliminate customer identification updates would be where the money laundering risks are low and the service provided does not offer a realistic opportunity for money laundering.
        5. An example of where a Relevant PersonG might reasonably reduce the degree of on-going monitoring and scrutinising of transactions, based on a reasonable monetary threshold or on the nature of the transaction, would be where the transaction is a recurring, fixed contribution to a savings scheme, investment portfolio or fund or where the monetary value of the transaction is not material for money laundering purposes given the nature of the customer and the transaction type.
        6. For the avoidance of doubt, a Relevant PersonG should not conduct Simplified CDDG where there is any suspicion of money laundering.
        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]