Entire Section

  • AML 11 AML 11 Money Laundering Reporting Officer

    • AML 11.1 AML 11.1 [Deleted]

      [deleted]

      Deleted by DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]

      • AML 11.1.1 [Deleted]

        Deleted by DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]

    • AML 11.2 AML 11.2 Appointment of a MLRO

      • AML 11.2.1

        (1) A Relevant Person must appoint an individual as MLRO, with responsibility for implementation and oversight of its compliance with the Rules in this module, who is suitable to perform the role and has an appropriate level of seniority and independence to act in the role.
        (2) The MLRO in (1) and AML Rule 11.2.5 must be resident in the U.A.E, except in the case of the MLRO for a Registered Auditor.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] RM196/2016 (Made 7th December 2016). [VER13/02-17]
        [Added] DFSA RMI306/2021 (Made 30th June 2021). [VER18/09-21]

      • AML 11.2.2 AML 11.2.2

        The individual appointed as the MLRO of a Representative Office must be the same individual who holds the position of Principal Representative of that Representative Office.

        Derived from RM117/2013 [VER9/07-13]

        • AML 11.2.2 Guidance

          1. Authorised Firms are reminded that under GEN Rule 7.5.1, the MLRO function is a mandatory appointment. For the avoidance of doubt, the individual appointed as the MLRO of an Authorised Firm, other than a Representative Office, is the same individual who holds the Licensed Function of Money Laundering Reporting Officer of that Authorised Firm. Authorised Firms are also reminded that the guidance under GEN Rule 7.5.2 sets out the grounds under which the DFSA will determine whether to grant a waiver from the residence requirements for an MLRO. The same guidance would apply by analogy to other Relevant Persons seeking a waiver from the MLRO residence requirements.
          2. The individual appointed as the MLRO of an Authorised Market Institution is the same individual who holds the position of Money Laundering Reporting Officer of that Authorised Market Institution under the relevant AMI Rule.
          Derived from RM117/2013 [VER9/07-13]

      • AML 11.2.3

        An Authorised Firm, other than a Representative Office, must appoint an individual to act as a deputy MLRO of the Authorised Firm to fulfil the role of the MLRO in his absence.

        Derived from RM117/2013 [VER9/07-13]

      • AML 11.2.4 AML 11.2.4

        A Relevant Person's MLRO must deal with the DFSA in an open and co-operative manner and must disclose appropriately any information of which the DFSA would reasonably be expected to be notified.

        Derived from RM117/2013 [VER9/07-13]

        • AML 11.2.4 Guidance

          1. The individual appointed as the deputy MLRO of an Authorised Firm need not apply for Authorised Individual status for performing the Licensed Function of Money Laundering Reporting Officer, subject to Rules in GEN section 11.6.
          2. A Relevant Person other than an Authorised Firm should make adequate arrangements to ensure that it remains in compliance with this module in the event that its MLRO is absent. Adequate arrangements would include appointing a temporary MLRO for the period of the MLRO's absence or making sure that the Relevant Person's AML systems and controls allow it to continue to comply with these Rules when the MLRO is absent.
          Derived from RM117/2013 [VER9/07-13]

      • AML 11.2.5 AML 11.2.5

        A Relevant Person may outsource the role of MLRO to an individual outside the Relevant Person provided that the relevant individual under the outsourcing agreement is and remains suitable to perform the MLRO role.

        Derived from RM117/2013 [VER9/07-13]

        • AML 11.2.5 Guidance

          Where a Relevant Person outsources specific AML tasks of its MLRO to another individual or a third party provider, including within a corporate Group, the Relevant Person remains responsible for ensuring compliance with the responsibilities of the MLRO. The Relevant Person should satisfy itself of the suitability of anyone who acts for it.

          Derived from RM117/2013 [VER9/07-13]

    • AML 11.3 AML 11.3 Qualities of a MLRO

      • AML 11.3.1 AML 11.3.1

        A Relevant Person must ensure that its MLRO has:

        (a) direct access to its senior management;
        (b) sufficient resources including, if necessary, an appropriate number of appropriately trained Employees to assist in the performance of his duties in an effective, objective and independent manner;
        (c) a level of seniority and independence within the Relevant Person to enable him to act on his own authority; and
        (d) timely and unrestricted access to information sufficient to enable him to carry out his responsibilities in Rule 11.4.1.
        Derived from RM117/2013 [VER9/07-13]

        • AML 11.3.1 Guidance

          The DFSA considers that a Relevant Person will need to consider this Rule when appointing an outsourced MLRO. Any external MLRO that is appointed will need to have the actual or effective level of seniority that the role requires.

          Derived from RM117/2013 [VER9/07-13]

    • AML 11.4 AML 11.4 Responsibilities of a MLRO

      • AML 11.4.1

        A Relevant Person must ensure that its MLRO implements and has oversight of and is responsible for the following matters:

        (a) the day-to-day operations for compliance by the Relevant Person with its AML policies, procedures, systems and controls;
        (b) acting as the point of contact to receive notifications from the Relevant Person's Employees under AML Rule 13.2.2;
        (c) taking appropriate action under AML Rule 13.3.1 following the receipt of a notification from an Employee ;
        (d) making Suspicious Activity Reports in accordance with Federal AML legislation;
        (e) acting as the point of contact within the Relevant Person for competent U.A.E. authorities and the DFSA regarding money laundering issues;
        (f) responding promptly to any request for information made by competent U.A.E. authorities or the DFSA;
        (g) receiving and acting upon any relevant findings, recommendations, guidance, directives, resolutions, sanctions, notices or other conclusions described in chapter 10; and
        (h) establishing and maintaining an appropriate money laundering training programme and adequate awareness arrangements under chapter 12.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]