AML 14 AML 14 General
AML 14.1 AML 14.1 Groups, branches and subsidiaries
AML 14.1.1 AML 14.1.1(1) A
Relevant Personwhich is a DIFCentity must ensure that its policies, procedures, systems and controls required by Rule 5.2.1 apply to:(a) any of its branches or Subsidiaries; and(b) any of its Groupentities in the DIFC.(2) Where the anti-money laundering requirements in another jurisdiction differ from those in the DIFC, the Relevant Personmust require its branchor Subsidiaryin that jurisdiction to apply the higher of the two standards, to the extent permitted by the law of that jurisdiction.(3) Where the law of another jurisdiction does not permit the implementation of policies, procedures, systems and controls that are equivalent to or higher than those that apply to the Relevant Personin the DIFC, the Relevant Personmust:(a) inform the DFSAin writing; and(b) apply appropriate additional measures to manage the money laundering risks posed by the relevant branch or Subsidiary.
AML 14.1.1 Guidance
Relevant Personwhich is a DIFCentity should conduct a periodic review to verify that any branch or Subsidiaryoperating in another jurisdiction is in compliance with the obligations imposed under these Rules.
AML 14.1.2 AML 14.1.2
Relevant Personmust:(a) communicate the policies and procedures which it establishes and maintains in accordance with these Rules to its Groupentities, branches and Subsidiaries; and(b) document the basis for its satisfaction that the requirement in Rule 14.1.1(2) is met.
AML 14.1.2 Guidance
In relation to an
Authorised Firm, if the DFSAis not satisfied in respect of AML compliance of its branches and Subsidiariesin a particular jurisdiction, it may take action, including making it a condition on the Authorised Firm's Licencethat it must not operate a branch or Subsidiaryin that jurisdiction.
AML 14.2 AML 14.2 Group policies
Relevant Personwhich is part of a Groupmust ensure that it:(a) has developed and implemented policies and procedures for the sharing of information between Groupentities, including the sharing of information relating to Customer Due Diligenceand money laundering risks;(b) has in place adequate safeguards on the confidentiality and use of information exchanged between Group entities, including consideration of relevant data protection legislation;(c) remains aware of the money laundering risks of the Groupas a whole and of its exposure to the Groupand takes active steps to mitigate such risks;(d) contributes to a Group-wide risk assessment to identify and assess money laundering risks for the Group; and(e) provides its Group-wide compliance, audit and AML functions with customer account and transaction information from branches and subsidiaries when necessary for AML purposes.
AML 14.3 AML 14.3 Notifications
Relevant Personmust inform the DFSAin writing as soon as possible if, in relation to its activities carried on in or from the DIFCor in relation to any of its branches or Subsidiaries, it:(a) receives a request for information from a regulator or agency responsible for AML, counter-terrorism financing, or sanctions regarding enquiries into potential money laundering or terrorist financing or sanctions breaches;(b) becomes aware, or has reasonable grounds to believe, that a money laundering event has occurred or may have occurred in or through its business;(c) becomes aware of any money laundering or sanctions matter in relation to the Relevant Personor a member of its Groupwhich could result in adverse reputational consequences to the Relevant Person; or(d) becomes aware of a significant breach of a Rule in this module or a breach of Federal AML legislation by the Relevant Personor any of its Employees.
AML 14.4 AML 14.4 Record keeping
Relevant Personmust maintain the following records:(a) a copy of all documents and information obtained in undertaking initial and ongoing Customer Due Diligence;(b) records (consisting of the original documents or certified copies) in respect of the customer business relationship, including:(i) business correspondence and other information relating to a customer's account;(ii) sufficient records of transactions to enable individual transactions to be reconstructed; and(iii) internal findings and analysis relating to a transaction or any business, such as if the transactionor business is unusual or suspicious, whether or not it results in a Suspicious Activity Report;(c) notifications made under AML Rule 13.2.2};(d) Suspicious Activity Reports and any relevant supporting documents and information, including internal findings and analysis;(e) any relevant communications with the FIU;(f) the documents in AML Rule 14.4.2; and(g) any other matter that the Relevant Personis expressly required to record under these Rules,
for at least six years from the date on which the notification or report was made, the business relationship ends or the transaction is completed, whichever occurs last.
Relevant Personmust provide to the DFSAor a law enforcement agency immediately on request a copy of a record referred to in AML Rule 14.4.1.Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]
AML 14.4.2 AML 14.4.2
A Relevant Person must document, and provide to the
DFSAimmediately on request, any of the following:(a) the risk assessment of its business undertaken under Rule 5.1.1;(b) how the assessment in (a) was used for the purposes of complying with Rule 6.1.1(1);(c) the risk assessment of the customer undertaken under Rule 6.1.1(1)(a); and(d) the determination made under Rule 6.1.1(1)(b).
AML 14.4.2 Guidance1. The records required to be kept under AML Rule 14.4.1 may be kept in electronic format, provided that such records are readily accessible and available to respond promptly to any
DFSArequests for information. Authorised Personsare reminded of their obligations in GEN Rule 18.104.22.168. If the date on which the business relationship with a customer has ended remains unclear, it may be taken to have ended on the date of the completion of the last transaction.3. The records maintained by a Relevant Personshould be kept in such a manner that:a. the DFSAor another competent authority is able to assess the R elevant Person'scompliance with legislation applicable in the DIFC;b. any transaction which was processed by or through the Relevant Personon behalf of a customer or other third party can be reconstructed;c. any customer or third party can be identified; andd. the Relevant Personcan satisfy without delay any regulatory enquiry or court order to disclose information.4. The DFSAwould ordinarily expect a Relevant Person to be able to provide a copy of a record or assessment referred to in AML Rule 14.4.1 or AML Rule 14.4.2 within 24 hours of a request by the DFSA. However, if a request is complex or if records are kept outside the DIFCas set out in AML Rule 14.4.3, the DFSAmay allow further time to comply with the request.
Where the records referred to in Rule 14.4.1 are kept by the
Relevant Personoutside the DIFC, a Relevant Personmust:(a) take reasonable steps to ensure that the records are held in a manner consistent with these Rules;(b) ensure that the records are easily accessible to the Relevant Person; and(c) upon request by the DFSA, ensure that the records are immediately available for inspection.
Relevant Personmust:(a) verify if there is secrecy or data protection legislation that would restrict access without delay to the records referred to in Rule 14.4.1 by the Relevant Person, the DFSAor the law enforcement agencies of the U.A.E.; and(b) where such legislation exists, obtain without delay certified copies of the relevant records and keep such copies in a jurisdiction which allows access by those persons in (a).
AML 14.4.5 AML 14.4.5
A Relevant Person must be able to demonstrate that it has complied with the training and awareness requirements in chapter 12 through appropriate measures, including the maintenance of relevant training records.
AML 14.4.5 Guidance1. In complying with Rule 14.4.3,
Authorised Personsare reminded of their obligations in GEN Rule 22.214.171.124. The DFSAconsiders that "appropriate measures" in Rule 14.4.5 may include the maintenance of a training log setting out details of:a. the dates when the training was given;b. the nature of the training; andc. the names of Employeeswho received the training.
AML 14.5 AML 14.5 Annual AML Return
AML 14.5.1 AML 14.5.1
Relevant Personmust complete the AML Return form in AFNand submit it to the DFSAby the end of September each year. The annual AML Return must cover the period from 1 August of the previous year to 31 July of the reporting year.
AML 14.5.1 Guidance
Relevant Personsshould be aware of their obligation under Cabinet Decision No. 10 of 2019 to prepare and submit semi-annual reports to their senior management, and to send a copy of those reports, with senior management remarks and decisions, to the relevant Supervisory Authority.
AML 14.5.2 AML 14.5.2
Relevant Personmust:(a) for its financial year ending in 2016, complete and submit the AML Return form under AML Rule 14.5.1 within four months of its financial year end and the return must cover that financial year; and(b) for the 2017 calendar year, complete and submit the AML Return form by the end of September 2017 and the return must cover the period from 1 August 2016 until 31 July 2017.Derived from DFSA RM177/2016 (Made 19th June 2016) [VER12/08-16]
AML 14.5.2 Guidance
In respect of a financial year ending in 2016, a
Relevant Personmust submit its AML Return four months after its financial year end. For the 2017 calendar year, it must report for the period 1 August 2016 to 31 July 2017. For some Relevant Persons, this may result in an overlap of periods covered by each return.Derived from DFSA RM177/2016 (Made 19th June 2016) [VER12/08-16]
AML 14.6 AML 14.6 Communication with the DFSA
Relevant Personmust:(a) be open and cooperative in all its dealings with the DFSA; and(b) ensure that any communication with the DFSAis conducted in the English language.
AML 14.7 AML 14.7 Employee Disclosures
AML 14.7.1 AML 14.7.1
Relevant Personmust ensure that it does not prejudice an Employeewho discloses any information regarding money laundering to the DFSAor to any other relevant body involved in the prevention of money laundering.
AML 14.7.1 Guidance
DFSAconsiders that "relevant body" in Rule 14.7.1 would include the FIU or another financial intelligence unit, the police, or a Dubai or Federal ministry.
AML 14.8 AML 14.8 Decision making procedures
AML 14.8.2 AML 14.8.2
If the DFSA decides to exercise its power under Article 14(1) of Federal Law No. 20 of 2018 in relation to a person, the person may refer the matter to the FMT for review.
AML 14.8.1 AML 14.8.1
The procedures in Schedule 3 to the Regulatory Law apply to a decision of the DFSA to impose an administrative penalty under Article 14(1) of Federal Law No. 20 of 2018.
AML 14.8.2 Guidance
The Rules in this section apply where the DFSA makes a decision to impose an administrative penalty under Federal Law No. 20 of 2018. The administrative penalties referred to in that Article include fines, bans from working in a sector, suspension or restriction of activities and other measures. The DFSA may also impose sanctions under DIFC laws, for example, under Article 90 of the Regulatory Law, in which case, the relevant provision will specify the procedures that apply.