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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) [VER16/07-19]
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  • Factors that may indicate lower money laundering risk

    • AML 6.1.3

      (1) When assessing if there is a low risk of money laundering in a particular situation, a Relevant PersonG must take into account, among other things:
      (a) customer risk factors, including whether the customer is:
      (i) a public body or a publicly owned enterprise;
      (ii) resident, established or registered in a geographical area of lower risk (as set out in paragraph (c));
      (iii) an Authorised PersonG ;
      (iv) a Regulated Financial InstitutionG that is subject to regulation and supervision, including AMLG regulation and supervision, in a jurisdiction with AMLG regulations that are equivalent to the standards set out in the FATFG Recommendations;
      (v) a SubsidiaryG of a Regulated Financial InstitutionG referred to in (iv), if the law that applies to the ParentG ensures that the SubsidiaryG also observes the same AMLG standards as its ParentG ;
      (vi) a company whose Securities are listed by the DFSAG , another Financial Services RegulatorG or a Regulated ExchangeG and which is subject to disclosure obligations broadly equivalent to those set out in the Markets RulesG ;
      (vii) a law firm, notary firm or other legal business that carries on its business in or from the DIFCG ; and
      (viii) an accounting firm, insolvency firm, Registered AuditorG or other audit firm that carries on its business in or from the DIFCG ;
      (b) product, service, transaction or delivery channel risk factors, including whether the product or service is:
      (i) a Contract of InsuranceG that is non-life insurance;
      (ii) a Contract of InsuranceG that is a life insurance product with no investment return or redemption or surrender value;
      (iii) an insurance policy for a pension scheme that does not provide for an early surrender option and cannot be used as collateral;
      (iv) a Contract of InsuranceG which is a reinsurance contract that is ceded by an insurer who is a Regulated Financial InstitutionG ;
      (v) a pension, superannuation or similar scheme that satisfies the following conditions:
      (A) the scheme provides retirement benefits to employees;
      (B) contributions to the scheme are made by way of deductions from wages; and
      (C) the scheme rules do not permit the assignment of a member's interest under the scheme; and
      (vi) a product where the risks of money laundering are adequately managed by other factors such as transaction limits or transparency of ownership; and
      (c) geographical risk factors, including whether:
      (i) a country has been identified by credible sources as having effective systems to counter money laundering;
      (ii) a country is identified by credible sources as having a low level of corruption or other criminal activity, such as terrorism, money laundering, or the production and supply of illicit drugs; and
      (iii) on the basis of reports by credible sources, such as mutual evaluations, detailed assessment reports or follow-up reports, a country:
      (A) has requirements to counter money laundering that are consistent with the FATFG Recommendations; and
      (B) effectively implements those Recommendations.
      (2) For the purposes of (1)(c), a credible source includes, but is not limited to, FATFG , the IMF, the World Bank, the OECD and other International Organisations.
      (3) When assessing the risk factors referred to in (1), Relevant PersonsG must bear in mind that the presence of one or more risk factors may not always indicate a low risk of money laundering in a particular situation.
      Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]