Entire Section

  • AML 6.1.7 AML 6.1.7

    If a Relevant Person uses a numbered account or an account with an abbreviated name, it must ensure that:

    (a) such an account is used only for internal purposes;
    (b) it has undertaken the same Customer Due Diligence procedures in relation to the account holder as are required for other account holders;
    (c) it maintains the same information in relation to the account and account holder as is required for other accounts and account holders; and
    (d) staff performing AML functions, including staff responsible for identifying and monitoring transactions for suspicious activity, and staff performing compliance and audit functions, have full access to information about the account and the account holder.
    Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • Guidance on the customer risk assessment

      1. The risk assessment of a customer, which is illustrated in figure 3 above, requires a Relevant Person to allocate an appropriate risk rating to every customer. The DFSA would expect risk ratings to be either descriptive, such as "low", "medium" or "high", or a sliding numeric scale such as 1 for the lowest risk to 10 for the highest. Depending on the outcome of a Relevant Person's assessment of its customer's money laundering risk, a Relevant Person should decide to what degree CDD will need to be performed. For a high risk customer, the Relevant Person will need to undertake Enhanced CDD under AML section 7.4 as well as the normal CDD set out in AML section 7.3. For a low risk customer, the Relevant Person may be able to undertake Simplified CDD in accordance with AML section 7.5. For any other customer, the Relevant Person will be required to undertake the normal CDD set out in AML section 7.3.
      2. Using the RBA, a Relevant Person could, when assessing two customers with near identical risk profiles, consider that one is high risk and the other low risk. This may occur, for example, where both customers may be from the same high risk country, but one customer may be a customer in relation to a low risk product or may be a long-standing customer of a Group company who has been introduced to the Relevant Person.
      3. In AML Rule 6.1.4, ownership arrangements which may prevent the Relevant Person from identifying one or more Beneficial Owners include bearer shares and other negotiable instruments in which ownership is determined by possession.
      Derived from DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • Guidance on the term "customer"

      4. The point at which a person becomes a customer will vary from business to business. However, the DFSA considers that it would usually occur at or prior to the business relationship being formalised, for example, by the signing of a customer agreement or the acceptance of terms of business.
      5. The DFSA does not consider that a person would be a customer of a Relevant Person merely because such person receives marketing information from a Relevant Person or where a Relevant Person refers a person who is not a customer to a third party (including a Group member).
      6. The DFSA considers that a counterparty would generally be a "customer" for the purposes of this module and would therefore require a Relevant Person to undertake CDD on such a person. However, this would not include a counterparty in a transaction undertaken on a Regulated Exchange. Nor would it include suppliers of ordinary business services, for consumption by the Relevant Person such as cleaning, catering, stationery, IT or other similar services.
      7. A Representative Office should not have any customers in relation to its DIFC operations.
      Derived from DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • Guidance on high risk customers [Deleted]

      [Deleted] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • Guidance on low risk customers [Deleted]

      [Deleted] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • Guidance on Shell Banks

      8. AML Rule 6.1.5 prohibits a Relevant Person from establishing or maintaining a business relationship with a Shell Bank. A Shell Bank is a bank that has no physical presence in the country in which it is incorporated or licensed, and is not affiliated with a regulated financial Group that is subject to effective consolidated supervision. The DFSA does not consider that the existence of a local agent or low level staff constitutes physical presence.
      Derived from DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • Guidance on fictitious and anonymous accounts

      9. A Relevant Person should note that, in addition to the prohibition in AML Rule 6.1.6 against establishing anonymous or fictitious accounts or accounts for unknown persons, the Federal AML legislation also prohibits the creation or keeping of records of bank accounts using pseudonyms, fictitious names or numbered accounts, without the account holder's name.
      Derived from 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]

    • Guidance on Tax Issues

      10. A Relevant Person should, when carrying out a customer risk assessment, consider and assess the tax crime risk associated with the customer and factor such risks into the overall risk assigned to that customer. Many of the factors described in AML Rule 6.1.2 on higher risk customers could also be an indicator of potential tax crimes. For example, the use of complex or unusual corporate structures, the customer's business not being located where the customer lives (without adequate explanation), unusual customer interface, or reluctance by the customer to communicate directly with the Relevant Person.
      11. If it is justified based on the risk assessment and where concerns arise, a Relevant Person may wish to seek comfort from its customers by obtaining disclosures or declarations to ascertain if a legitimate explanation exists for the concerns and therefore to allay those concerns.
      Derived from DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]