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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 15 DNFBP Registration and Supervision

    • AML 15 Guidance

      1. A DNFBPG should ensure that it complies with and has regard to relevant provisions of the Regulatory Law. The Regulatory Law gives the DFSAG a power to supervise DNFBPs'G compliance with relevant AML laws in the StateG . The Regulatory LawG requires a DNFBPG to be registered by the DFSAG to conduct its activities in the DIFCG . AML Rule 15.1.2 sets out the criteria a DNFBPG must meet to be registered. The Regulatory Law also gives the DFSAG a number of other important powers in relation to DNFBPsG , including powers of enforcement. This includes a power to obtain information and to conduct investigations into possible breaches of the Regulatory Law. The DFSAG may also impose fines for breaches of the Regulatory Law or the Rules. It may also suspend or withdraw the registration of a DNFBP in various circumstances.
      2. The DFSAG takes a risk-based approach to regulation of persons which it supervises. Generally, the DFSAG will work with DNFBPsG to identify, assess, mitigate and control relevant risks where appropriate. RPP describes the DFSA'sG enforcement powers under the Regulatory Law and outlines its policy for using these powers.
      3. AML Rule 3.2.1 defines a DNFBP by setting out a list of businesses or professions which, if carried on in or from the DIFCG , constitute a DNFBP.
      4. In determining if a person is carrying on a business or profession in the DIFCG that falls within the DNFBP definition, the DFSA will adopt a 'substance over form' approach. That is, it will consider what business or profession is in fact being carried on, and its main characteristics, and not just what business or profession the person purports, or is licensed, to carry on in the DIFCG .
      5. The DFSA considers that "a law firm, notary firm or other independent legal business" in paragraph (1)(d) of the DNFBP definition, includes any business or profession that involves a legal service, including advice or services related to laws in the State or other jurisdictions. The DFSA does not consider it necessary for the purposes of the definition that:
      a. the relevant person is licensed to provide legal services in the State; or
      b. the individuals or employees providing the legal service are qualified or authorised to do so, whether in the State or in any other jurisdiction.
      6. The DFSA considers that "an accounting firm, audit firm or insolvency firm" in paragraph (1)(e) of the DNFBP definition, includes forensic accounting services that use accounting skills, principles and techniques to investigate suspected illegal activity or to analyse financial information for use in legal proceedings.
      7. The DFSA would also consider a tax advisory business carried on in or from the DIFCG to be a DNFBP as it is likely to involve elements of both legal and accounting services i.e. advice on taxation law and the use of accounting skills to analyse financial records, and so fall within either paragraph (1)(d) or (e) of the DNFBP definition.
      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]

    • AML 15.1 Registration and Notifications

      • AML 15.1.1

        An applicant for registration as a DNFBPG must apply to the DFSAG by completing and submitting the appropriate form in the AFNG Sourcebook.

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

      • AML 15.1.2

        (1) To be registered as a DNFBPG , an applicant must demonstrate to the DFSAG 's satisfaction that:

        (a) it is fit and proper to perform anti-money laundering functions; and
        (b) it has adequate resources and systems and controls, including policies and procedures, to comply with applicable anti-money laundering requirements under Federal AMLG legislation, the Regulatory LawG and these RulesG .

        (2) In assessing if an applicant is fit and proper under (1)(a), the DFSAG may, without limiting the matters it may take into account under that paragraph, consider the applicant, its senior management, its beneficial owners, other entities in its GroupG and any other person with whom it has a relationship.

        (3) The DFSAG will in assessing if an applicant is fit and proper, consider the cumulative effect of matters that, if taken individually, may be regarded as insufficient to give reasonable cause to doubt the fitness and propriety of the applicant.

        Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • Annual Information Return

        Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

        • AML 15.1.3

          A DNFBPG must complete the annual information return in AFNG for each calendar year and submit the return to the DFSAG by 31 January of the following year.

          Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • Notification of changes

        Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

        • AML 15.1.4

          A DNFBPG must promptly notify the DFSAG of any change in its:

          (a) name;
          (b) legal status;
          (c) address;
          (d) MLROG ; or
          (e) senior management; or.
          (f) beneficial ownership.
          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]

    • AML 15.2 Request to withdraw registration

      Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • AML 15.2.1

        (1) A DNFBPG must notify the DFSAG in writing 14 days in advance of it ceasing to carry on its DNFBPG business activities in or from the DIFCG .

        (2) The notice must include a request to cancel its registration, an explanation of the reason for it ceasing business, and attached copies of any relevant documents.

        Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

        • AML 15.2.5 Guidance

          1. A DNFBPG may request the withdrawal of its registration because, for example, it no longer meets the definition of a DNFBPG , becomes insolvent or enters into administration, or proposes to leave the DIFCG .
          2. In addition to being able to withdraw registration at a DNFBPG 's request, the DFSAG may suspend or withdraw the registration of a DNFBPG on its own initiative in various circumstances (see Article 71F of the Regulatory LawG ).
          Derived from RM117/2013 [VER9/07-13]
          [Amended] DFSA RM132/2014 (Made 21st August 2014). [VER10/06-14]
          [Amended] DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • AML 15.2.2 [Deleted]

        [Deleted] DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • AML 15.2.3 [Deleted]

        [Deleted] DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • AML 15.2.4 [Deleted]

        [Deleted] DFSA RM132/2014 (Made 21st August 2014). [VER10/06-14]

      • AML 15.2.5 [Deleted]

        [Deleted] DFSA RM132/2014 (Made 21st August 2014). [VER10/06-14]

    • AML 15.3 Disclosure of regulatory status

      • AML 15.3.1

        A DNFBPG must not:

        (a) misrepresent its regulatory status with respect to the DFSAG expressly or by implication; or
        (b) use or reproduce the DFSAG logo without express written permission from the DFSAG and in accordance with any conditions for use.
        Derived from RM117/2013 [VER9/07-13]

    • AML 15.4 Transitional

      Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

      • AML 15.4.1

        (1) This RuleG applies to a PersonG who, immediately before the commencement date, was registered as a DNFBPG , other than a PersonG who was registered as a DNFBPG by reason only of being a dealer in any saleable item of a price equal to or greater than $15,000. (2) The PersonG is on the commencement date taken to continue to be registered by the DFSAG as a DNFBPG . (3) The PersonG must, by no later than the end of the transitional period, certify in writing to the DFSAG :

        (a) that it continues to carry on its DNFBPG business or profession in or from the DIFCG ;
        (b) the names of the individuals who comprise its senior management;
        (c) details of its beneficial owners;
        (d) the name of the individual it has appointed as MLROG ; and
        (e) that it has in place adequate resources and systems and controls to comply with applicable anti-money laundering requirements under the Law, these RulesG and Federal AML legislation.

        (4) The DFSAG may require the certification in (3) to be in such form and verified in such manner as it thinks fit.

        (5) In this RuleG :

        (a) "commencement date" means the day on which the Regulatory Law Amendment Law 2018 comes into force; and
        (b) "transitional period" means the period starting on the commencement date and ending three months after that date.
        Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]

        • AML 15.4.1 Guidance

          If a DNFBPG fails to provide the duly completed certification to the DFSAG by the end of the transitional period, it will contravene these RulesG . The DFSAG may because of that failure take steps to suspend or withdraw the DNFBPG 's registration.

          Derived from DFSA RM223/2018 (Made 18th April 2018). [VER14/07-18]