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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) [VER15/07-18]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • AML 14 General Obligations

    • AML 14.1 Groups, branches and subsidiaries

      • AML 14.1.1

        (1) A Relevant PersonG which is a DIFCG entity must ensure that its policies, procedures, systems and controls required by Rule 5.2.1 apply to:
        (a) any of its branches or SubsidiariesG ; and
        (b) any of its GroupG entities in the DIFCG .
        (2) Where the anti-money laundering requirements in another jurisdiction differ from those in the DIFCG , the Relevant PersonG must require its branchG or SubsidiaryG in that jurisdiction to apply the higher of the two standards, to the extent permitted by the law of that jurisdiction.
        (3) Where the law of another jurisdiction does not permit the implementation of policies, procedures, systems and controls that are equivalent to or higher than those that apply to the Relevant PersonG in the DIFCG , the Relevant PersonG must:
        (a) inform the DFSAG in writing; and
        (b) apply appropriate additional measures to manage the money laundering risks posed by the relevant branch or SubsidiaryG .
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

        • AML 14.1.1 Guidance

          A Relevant PersonG which is a DIFCG entity should conduct a periodic review to verify that any branch or SubsidiaryG operating in another jurisdiction is in compliance with the obligations imposed under these Rules.

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

      • AML 14.1.2

        A Relevant PersonG must:

        (a) communicate the policies and procedures which it establishes and maintains in accordance with these Rules to its GroupG entities, branches and SubsidiariesG ; and
        (b) document the basis for its satisfaction that the requirement in Rule 14.1.1(2) is met.
        Derived from RM117/2013 [VER9/07-13]

        • AML 14.1.2 Guidance

          In relation to an Authorised FirmG , if the DFSAG is not satisfied in respect of AML compliance of its branches and SubsidiariesG in a particular jurisdiction, it may take action, including making it a condition on the Authorised Firm'sG LicenceG that it must not operate a branch or SubsidiaryG in that jurisdiction.

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

    • AML 14.2 Group policies

      • AML 14.2.1

        A Relevant PersonG which is part of a GroupG must ensure that it:

        (a) has developed and implemented policies and procedures for the sharing of information between GroupG entities, including the sharing of information relating to Customer Due DiligenceG and money laundering risks;
        (b) has in place adequate safeguards on the confidentiality and use of information exchanged between Group entities, including consideration of relevant data protection legislation;
        (c) remains aware of the money laundering risks of the GroupG as a whole and of its exposure to the GroupG and takes active steps to mitigate such risks;
        (d) contributes to a GroupG -wide risk assessment to identify and assess money laundering risks for the GroupG ; and
        (e) provides its GroupG -wide compliance, audit and AML functions with customer account and transaction information from branches and subsidiaries when necessary for AML purposes.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • AML 14.3 Notifications

      • AML 14.3.1

        A Relevant PersonG must inform the DFSAG in writing as soon as possible if, in relation to its activities carried on in or from the DIFCG or in relation to any of its branches or SubsidiariesG , it:

        (a) receives a request for information from a regulator or agency responsible for AML, counter-terrorism financing, or sanctions regarding enquiries into potential money laundering or terrorist financing or sanctions breaches;
        (b) becomes aware, or has reasonable grounds to believe, that a money laundering event has occurred or may have occurred in or through its business;
        (c) becomes aware of any money laundering or sanctions matter in relation to the Relevant PersonG or a member of its GroupG which could result in adverse reputational consequences to the Relevant PersonG ; or
        (d) becomes aware of a significant breach of a Rule in this module or a breach of Federal AML legislation by the Relevant PersonG or any of its Employees.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]

    • AML 14.4 Record keeping

      • AML 14.4.1

        A Relevant PersonG must maintain the following records:

        (a) a copy of all documents and information obtained in undertaking initial and ongoing Customer Due DiligenceG ;
        (b) records (consisting of the original documents or certified copies) in respect of the customer business relationship, including:
        (i) business correspondence and other information relating to a customer's account;
        (ii) sufficient records of transactions to enable individual transactions to be reconstructed; and
        (iii) internal findings and analysis relating to a transaction or any business, such as if the transactionG or business is unusual or suspicious, whether or not it results in a Suspicious Activity ReportG ;
        (c) notifications made under AML Rule 13.2.2};
        (d) Suspicious Activity Reports and any relevant supporting documents and information, including internal findings and analysis;
        (e) any relevant communications with the FID;
        (f) the documents in AML Rule 14.4.2; and
        (g) any other matter that the Relevant PersonG is expressly required to record under these Rules,

        for at least six years from the date on which the notification or report was made, the business relationship ends or the transaction is completed, whichever occurs last.

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

      • AML 14.4.1A

        A Relevant PersonG must provide to the DFSAG or a law enforcement agency immediately on request a copy of a record referred to in AML Rule 14.4.1.

        Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

      • AML 14.4.2

        A Relevant Person must document, and provide to the DFSAG immediately on request, any of the following:

        (a) the risk assessment of its business undertaken under Rule 5.1.1;
        (b) how the assessment in (a) was used for the purposes of complying with Rule 6.1.1(1);
        (c) the risk assessment of the customer undertaken under Rule 6.1.1(1)(a); and
        (d) the determination made under Rule 6.1.1(1)(b).
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

        • AML 14.4.2 Guidance

          1. The records required to be kept under AML Rule 14.4.1 may be kept in electronic format, provided that such records are readily accessible and available to respond promptly to any DFSAG requests for information. Authorised PersonsG are reminded of their obligations in GEN Rule 5.3.24.
          2. If the date on which the business relationship with a customer has ended remains unclear, it may be taken to have ended on the date of the completion of the last transaction.
          3. The records maintained by a Relevant PersonG should be kept in such a manner that:
          a. the DFSAG or another competent authority is able to assess the Relevant Person'sG compliance with legislation applicable in the DIFCG ;
          b. any transaction which was processed by or through the Relevant PersonG on behalf of a customer or other third party can be reconstructed;
          c. any customer or third party can be identified; and
          d. the Relevant PersonG can satisfy without delay any regulatory enquiry or court order to disclose information.
          4. The DFSAG would ordinarily expect a Relevant Person to be able to provide a copy of a record or assessment referred to in AML Rule 14.4.1 or AML Rule 14.4.2 within 24 hours of a request by the DFSAG . However, if a request is complex or if records are kept outside the DIFCG as set out in AML Rule 14.4.3, the DFSAG may allow further time to comply with the request.
          Derived from RM117/2013 [VER9/07-13]
          [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

      • AML 14.4.3

        Where the records referred to in Rule 14.4.1 are kept by the Relevant PersonG outside the DIFCG , a Relevant PersonG must:

        (a) take reasonable steps to ensure that the records are held in a manner consistent with these Rules;
        (b) ensure that the records are easily accessible to the Relevant PersonG ; and
        (c) upon request by the DFSAG , ensure that the records are immediately available for inspection.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

      • AML 14.4.4

        A Relevant PersonG must:

        (a) verify if there is secrecy or data protection legislation that would restrict access without delay to the records referred to in Rule 14.4.1 by the Relevant PersonG , the DFSAG or the law enforcement agencies of the U.A.E.G ; and
        (b) where such legislation exists, obtain without delay certified copies of the relevant records and keep such copies in a jurisdiction which allows access by those persons in (a).
        Derived from RM117/2013 [VER9/07-13]

      • AML 14.4.5

        A Relevant Person must be able to demonstrate that it has complied with the training and awareness requirements in chapter 12 through appropriate measures, including the maintenance of relevant training records.

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

        • AML 14.4.5 Guidance

          1. In complying with Rule 14.4.3, Authorised PersonsG are reminded of their obligations in GEN Rule 5.3.24.
          2. The DFSAG considers that "appropriate measures" in Rule 14.4.5 may include the maintenance of a training log setting out details of:
          a. the dates when the training was given;
          b. the nature of the training; and
          c. the names of EmployeesG who received the training.
          Derived from RM117/2013 [VER9/07-13]

    • AML 14.5 Annual AML Return

      • AML 14.5.1

        A Relevant PersonG must complete the AML Return form in AFNG and submit it to the DFSAG by the end of September each year. The annual AML Return must cover the period from 1 August of the previous year to 31 July of the reporting year.

        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM132/2014 (Made 21st August 2014). [VER10/06-14]
        [Amended] DFSA RM177/2016 (Made 19th June 2016) [VER12/08-16]
        [Amended] DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

        • AML 14.5.1 Guidance

          Relevant PersonsG should be aware of their obligation under Cabinet Resolution No. 38 of 2014 to prepare AML reports and copy them to the FID.

          Derived from DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
          [Amended] DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • Transitional

        • AML 14.5.2

          A Relevant PersonG must:

          (a) for its financial year ending in 2016, complete and submit the AML Return form under AML Rule 14.5.1 within four months of its financial year end and the return must cover that financial year; and
          (b) for the 2017 calendar year, complete and submit the AML Return form by the end of September 2017 and the return must cover the period from 1 August 2016 until 31 July 2017.
          Derived from DFSA RM177/2016 (Made 19th June 2016) [VER12/08-16]

          • AML 14.5.2 Guidance

            In respect of a financial year ending in 2016, a Relevant PersonG must submit its AML Return four months after its financial year end. For the 2017 calendar year, it must report for the period 1 August 2016 to 31 July 2017. For some Relevant PersonsG , this may result in an overlap of periods covered by each return.

            Derived from DFSA RM177/2016 (Made 19th June 2016) [VER12/08-16]

    • AML 14.6 Communication with the DFSA

      • AML 14.6.1

        A Relevant PersonG must:

        (a) be open and cooperative in all its dealings with the DFSAG ; and
        (b) ensure that any communication with the DFSAG is conducted in the English language.
        Derived from RM117/2013 [VER9/07-13]

    • AML 14.7 Employee Disclosures

      • AML 14.7.1

        A Relevant PersonG must ensure that it does not prejudice an EmployeeG who discloses any information regarding money laundering to the DFSAG or to any other relevant body involved in the prevention of money laundering.

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

        • AML 14.7.1 Guidance

          The DFSAG considers that "relevant body" in Rule 14.7.1 would include the FID or another financial intelligence unit, the police, or a Dubai or Federal ministry.

          Derived from RM117/2013 [VER9/07-13]
          [Amended] DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]