Companies in the United Arab Emirates (UAE) should know these regulations and their requirements. Let´s talk facts...
The Central Bank of the UAE (CBUAE) has recently issued a new guidance on anti-money laundering, in order to track suspicious transactions and activities that may involve money laundering, terrorism financing and other criminal activities. An electronic reporting platform called goAML, was brought to life to collect and analyze financial and non-financial data to detect and combat potential financial crimes.
Money laundering defines any financial or banking transaction that intends to cover illegally obtained funds, or disguise the source of such, to avoid detection through financial and banking systems, and re-invest them into any legitimate business.
According to the UAE Ministry of Economy (MoE), all regulated entities, such as financial institutions (FIs) and the Designated Non-Financial Businesses and Professionals (DNFBPs), must register on goAML and implement respective anti-money laundering policies and controls to monitor, detect, investigate, and report on suspicious transactions, along their proper documentation.
The official registration deadline was April 30, 2021, however enrollments are still being accepted. Those who qualify are obliged to register to avoid hefty penalties and further non-compliance consequences.
Organizations that fail to comply with the Anti-Money Laundering (AML) and Combating Financing of Terrorism requirements may face administrative fines ranging from AED 50,000 to AED 1,000,000, according to the Ministry of Economy (MoE) (Cabinet Decision No. (16) of 2021).
DELTAKAP Middle East Tax Consultants
Managing Director, Tax Consultant, LL.M. (International Tax Law), CPAA (United Arab Emirates)