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) ARelevant Person must appoint an individual asMLRO , 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) TheMLRO in (1) and AML Rule 11.2.5 must be resident in theU.A.E , except in the case of the MLRO for aRegistered 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 aRepresentative Office must be the same individual who holds the position ofPrincipal Representative of thatRepresentative 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, theMLRO function is a mandatory appointment. For the avoidance of doubt, the individual appointed as theMLRO of anAuthorised Firm , other than aRepresentative Office , is the same individual who holds theLicensed Function of Money Laundering Reporting Officer of thatAuthorised Firm .Authorised Firms are also reminded that the guidance under GEN Rule 7.5.2 sets out the grounds under which theDFSA will determine whether to grant a waiver from the residence requirements for anMLRO . The same guidance would apply by analogy to otherRelevant Persons seeking a waiver from theMLRO residence requirements.2. The individual appointed as theMLRO of anAuthorised Market Institution is the same individual who holds the position ofMoney Laundering Reporting Officer of thatAuthorised Market Institution under the relevantAMI Rule.Derived from RM117/2013 [VER9/07-13]AML 11.2.3
An
Authorised Firm , other than aRepresentative Office , must appoint an individual to act as a deputyMLRO of theAuthorised Firm to fulfil the role of theMLRO 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 theDFSA 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 deputyMLRO of anAuthorised Firm need not apply forAuthorised Individual status for performing theLicensed Function ofMoney Laundering Reporting Officer , subject to Rules in GEN section 11.6.2. ARelevant Person other than anAuthorised Firm should make adequate arrangements to ensure that it remains in compliance with this module in the event that itsMLRO is absent.Adequate arrangements would include appointing a temporaryMLRO for the period of theMLRO's absence or making sure that theRelevant Person's AML systems and controls allow it to continue to comply with these Rules when theMLRO is absent.Derived from RM117/2013 [VER9/07-13]AML 11.2.5 AML 11.2.5
A
Relevant Person may outsource the role ofMLRO to an individual outside theRelevant Person provided that the relevant individual under the outsourcing agreement is and remains suitable to perform theMLRO role.Derived from RM117/2013 [VER9/07-13]AML 11.2.5 Guidance
Where a
Relevant Person outsources specific AML tasks of itsMLRO to another individual or a third party provider, including within a corporateGroup , theRelevant Person remains responsible for ensuring compliance with the responsibilities of theMLRO . TheRelevant 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 itsMLRO has:(a) direct access to its senior management;(b) sufficient resources including, if necessary, an appropriate number of appropriately trainedEmployees to assist in the performance of his duties in an effective, objective and independent manner;(c) a level of seniority and independence within theRelevant 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 aRelevant Person will need to consider this Rule when appointing an outsourcedMLRO . Any externalMLRO 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 itsMLRO implements and has oversight of and is responsible for the following matters:(a) the day-to-day operations for compliance by theRelevant Person with its AML policies, procedures, systems and controls;(b) acting as the point of contact to receive notifications from theRelevant 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 anEmployee ;(d) makingSuspicious Activity Reports in accordance with Federal AML legislation;(e) acting as the point of contact within theRelevant Person for competentU.A.E. authorities and theDFSA regarding money laundering issues;(f) responding promptly to any request for information made by competentU.A.E. authorities or theDFSA ;(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]