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Banks and Authorized Financial Institutions (IFLs) providing financial services to real estate, precious metals and stones businesses are required to specifically assess the risks of money laundering and terrorist financing.
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Dubai: Banks and Authorized Financial Institutions (LFIs) providing financial services to real estate, precious metals and stones companies are required to specifically assess the risks of money laundering and terrorist financing, according to the Central Bank of United Arab Emirates.
The Central Bank of the United Arab Emirates (CBUAE) has released a new guide on Combating Money Laundering and Terrorist Financing (AML / CFT) for its Authorized Financial Institutions (IFLs) that provide services to sectors of the economy. real estate and precious metals and stones. .
“BIAs providing services to the real estate and precious metals and stones sectors should assess the associated money laundering and terrorist financing risks and develop an effective AML / CFT program that includes a knowledgeable compliance officer and provide training to LFI employees on said risks, â€CBUAE said in a statement.
The central bank’s guidance, which came into effect on June 20, will help understand and mitigate risks as well as the effective implementation by LFIs of their statutory AML / CFT obligations, as outlined in Federal Decree-Law No. (20) of 2018 on AML / CFT and Cabinet Decision No. (10) of 2019.
The Guide also takes into account the standards and guidance issued by the Financial Action Task Force (FATF).
“An essential part of the CBUAE’s mandate is to ensure that all licensed financial institutions have a thorough understanding of their role in mitigating and addressing the risk of illicit activity in the UAE financial system. This guide serves as a key point of reference for those providing services to the real estate and precious metals and stones sectors, â€said Khaled Mohamed Balama, Governor of CBUAE.
As stipulated in the Guide, for all transactions with clients, BIAs are required to exercise appropriate due diligence and report any behavior that they reasonably suspect to be related to money laundering, terrorist financing or a criminal offense by submitting reports of suspicious activity directly UAE Financial Intelligence Unit using the ‘goAML’ portal.
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