Entire Section

  • AML 10.2.1 AML 10.2.1

    (1) A Relevant Person must establish and maintain effective systems and controls to ensure that on an ongoing basis it is properly informed as to, and takes reasonable measures to comply with, relevant resolutions or sanctions issued by the United Nations Security Council.
    (2) A Relevant Person must immediately notify the DFSA when it becomes aware that it is:
    (a) carrying on or about to carry on an activity;
    (b) holding or about to hold money or other assets; or
    (c) undertaking or about to undertake any other business whether or not arising from or in connection with (a) or (b);
    for or on behalf of a person, where such carrying on, holding or undertaking constitutes or may constitute a contravention of a relevant sanction or resolution issued by the United Nations Security Council.
    (3) A Relevant Person must ensure that the notification stipulated in (2) above includes the following information:
    (a) a description of the relevant activity in (2) (a), (b) or (c); and
    (b) the action proposed to be taken or that has been taken by the Relevant Person with regard to the matters specified in the notification.
    Derived from RM117/2013 [VER9/07-13]
    [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]

    • AML 10.2.1 Guidance

      1. In AML Rule 10.2.1(1), taking reasonable measures to comply with a United Nations Security Council resolution or sanction may include, for example, a Relevant Person not undertaking a transaction for or on behalf of a person or undertaking further due diligence in respect of a person.
      2. Relevant United Nations Security Council resolutions or sanctions mentioned in AML Rule 10.2.1 may, among other things, relate to money laundering, terrorist financing or the financing of weapons of mass destruction or otherwise be relevant to the activities carried on by the Relevant Person. For example:
      a. a Relevant Person should exercise due care to ensure that it does not provide services to, or otherwise conduct business with, a person engaged in money laundering, terrorist financing or the financing of weapons of mass destruction; and
      b. an Authorised Market Institution should exercise due care to ensure that it does not facilitate fund raising activities or listings by persons engaged in money laundering or terrorist financing or financing of weapons of mass destruction.
      3. A Relevant Person should be proactive in checking for, and taking measures to comply with, relevant resolutions or sanctions issued by the United Nations Security Council. The DFSA expects Relevant Persons to perform checks on an ongoing basis against their customer databases and records for any names appearing in resolutions or sanctions issued by the United Nations Security Council as well as to monitor transactions accordingly.
      4. A Relevant Person may use a database maintained elsewhere for an up-to-date list of resolutions and sanctions, or to perform checks of customers or transactions against that list. For example, it may wish to use a database maintained by its head office or a Group member. However, the Relevant Person retains responsibility for ensuring that its systems and controls are effective to ensure compliance with this module.
      5. Relevant Persons should also be aware of their obligations under Cabinet Decision No. 20 of 2019, which include the obligation to check on a daily basis the sanctions lists issued by the United Nations Security Council.
      Derived from RM117/2013 [VER9/07-13]
      [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]
      [Amended] DFSA RM258/2019 (Made 26th June 2019). [VER16/07-19]