AML 3.2.1

Past version: effective from 21/08/2014 - 31/01/2016
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In this module, the terms and abbreviations listed in the table below have the following meanings:

AML Means either "anti-money laundering" or this Anti-Money Laundering, Counter-Terrorist Financing and Sanctions module depending on the context.
AMLSCU Means the Anti-Money Laundering Suspicious Cases Unit of the U.A.E. Central Bank.
Authorised Person Means an Authorised Firm or an Authorised Market Institution.
beneficial owner Means, in relation to a customer, a natural person:
(a) who ultimately controls, directly or indirectly, a customer;
(b) who, in relation to a customer which is a legal person or arrangement, exercises (whether directly or indirectly) ultimate effective control over the person or arrangement, or the management of such person or arrangement;
(c) who ultimately owns or has an ownership interest in the customer, whether legally or beneficially, directly or indirectly;
(d) on whose behalf or for whose benefit a transaction is being conducted; or
(e) on whose instructions the signatories of an account, or any intermediaries instructing such signatories, are for the time being accustomed to act.
A person not falling into (a) or (b) is not a beneficial owner by reason of (c) or (d) if, having regard to a risk-based assessment of the customer, the ownership interest is small and in the circumstances poses no or negligible risk of money laundering.

In (a) to (e), a reference to a "customer" includes a customer account, customer assets and the underlying legal person or arrangements which constitute or make up the customer, customer account or customer assets.
Branch Means a place of business within the DIFC:
(a) which has no separate legal personality;
(b) which forms a legally dependant part of a Relevant Person whose principal place of business and head office is in a jurisdiction other than the DIFC; and
(c) through which the Relevant Person carries on business in or from the DIFC.
Client Has the meaning in chapter 2 of the Conduct of Business module.
company service provider Means a person, not falling into parts (1)(a) to (e) or (g) of the definition of a DNFBP that, by way of business, provides any of the following services to a customer:
(a) acting as a formation agent of legal persons;
(b) acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons;
(c) providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement; or
(d) acting as (or arranging for another person to act as) a nominee shareholder for another person.
Contract of Insurance Has the meaning in GEN Rule A4.1.1.
CTF Means counter-terrorist financing.
customer Unless otherwise provided, means:
(a) a person where, in relation to a business relationship between the person and a Relevant Person, there is a firm intention or commitment by each party to enter into a contractual relationship or where there is a firm commitment by each party to enter into a transaction, in connection with a product or service provided by the Relevant Person;
(b) a Client of an Authorised Firm;
(c) a Member or prospective Member of, or an applicant for admission of Securities to trading on, an Authorised Market Institution;
(d) in relation to a Single Family Office, a member of the Single Family; or
(e) a person with whom a Relevant Person is otherwise establishing or has established a business relationship.
Customer Due Diligence (CDD) Has the meaning in Rule 7.3.1.
Designated Non-Financial Business or Profession (DNFBP) Means:
(1) The following class of persons whose business or profession is carried on in or from the DIFC:
(a) a real estate developer or agency which carries out transactions with a customer involving the buying or selling of real property;
(b) a dealer in precious metals or precious stones;
(c) a dealer in any saleable item of a price equal to or greater than $15,000;
(d) a law firm, notary firm, or other independent legal business;
(e) an accounting firm, audit firm or insolvency firm;
(f) a company service provider; or
(g) a Single Family Office.
(2) A person who is an Authorised Person or a Registered Auditor is not a DNFBP.
DIFC entity Means a legal person which is incorporated or registered in the DIFC (excluding a registered Branch).
Domestic Fund A Fund established or domiciled in the DIFC.
Employee Means an individual:
(a) who is employed or appointed by a person in connection with that person's business, whether under a contract of service or for services or otherwise; or
(b) whose services, under an arrangement between that person and a third party, are placed at the disposal and under the control of that person.
Enhanced Customer Due Diligence Means undertaking Customer Due Diligence and the enhanced measures under Rule 7.4.1.
FATF Means the Financial Action Task Force.
FATF Recommendations Means the publication entitled the "International Standards on Combatting Money Laundering and the Financing of Terrorism and Proliferation" as published and amended from time to time by FATF.
Federal Law No. 1 of 2004 Means UAE Federal Law No. 1 of 2004 regarding Combating Terrorism Offences.
Federal Law No. 4 of 2002 Means UAE Federal Law No. 4 of 2002 regarding the Criminalisation of Money Laundering.
Financial Institution A regulated or unregulated entity, whose activities are primarily financial in nature.
Financial Services Regulator Means a regulator of financial services activities established in a jurisdiction other than the DIFC.
Governing Body Means the board of directors, partners, committee of management or other governing body of:
(a) a Body Corporate or Partnership; or
(b) an unincorporated association carrying on a trade or business, with or without a view to profit.
Group Means a Group of entities which includes an entity (the 'first entity') and:
(a) any parent of the first entity; and
(b) any subsidiaries (direct or indirect) of the parent or parents in (a) or the first entity; or
(c) for a legal person which is not a body corporate, refers to that person and any other associated legal persons who are in an equivalent relationship to that in (a) and (b).
Law Means the Regulatory Law 2004.
legal person Means any entity other than a natural person that can establish a customer relationship with a Relevant Person or otherwise own property. This can include companies, bodies corporate or unincorporate, trusts, foundations, anstalten, partnerships, associations, states and governments and other relevantly similar entities.
Member A person admitted as a member of an Authorised Market Institution in accordance with its Business Rules.
Money Laundering Reporting Officer (MLRO) Means the person appointed by a Relevant Person pursuant to Rule 11.2.1(1).
natural person Means an individual.
person Means a natural or legal person.
Politically Exposed Person (PEP) Means a natural person (and includes, where relevant, a family member or close associate) who is or has been entrusted with a prominent public function, including but not limited to, a head of state or of government, senior politician, senior government, judicial or military official, ambassador, senior executive of a state owned corporation, or an important political party official, but not middle ranking or more junior individuals in these categories.
Prescribed Low Risk Customer Means any of the following customer types:
(a) an Authorised Firm;
(b) an Authorised Market Institution;
(c) a Financial Institution whose entire operations are subject to regulation, including AML, by a Financial Services Regulator or other competent authority in a jurisdiction with AML regulations which are equivalent to the standards set out in the FATF Recommendations and it is supervised for compliance with such regulations;
(d) a Subsidiary of a Financial Institution referred to in (c), provided that the law that applies to the parent company ensures that the Subsidiary also observes the same AML standards as its Parent;
(e) a law firm, notary firm, or other independent legal business or an equivalent person in another jurisdiction whose entire operations are subject to AML regulation and supervision by a competent authority in a jurisdiction with AML regulations which are equivalent to the standards set out in the FATF Recommendations;
(f) an accounting firm, Registered Auditor or other audit firm or insolvency firm or an equivalent person in another jurisdiction whose entire operations are subject to AML regulation and supervision by a competent authority in a jurisdiction with AML regulations which are equivalent to the standards set out in the FATF Recommendations;
(g) a company whose Securities are listed on a Regulated Exchange and which is subject to disclosure obligations broadly equivalent to those set out in the Markets Rules;
(h) a government body or a non-commercial government entity in the U.A.E. or a FATF member country; and
(i) a customer where the business relationship is limited to the provision of one or more of the following products or services:
(i) a Contract of Insurance which is non-life insurance;
(ii) a Contract of Insurance which is a life insurance product with no investment return or redemption or surrender value;
(iii) a Contract of Insurance which is life insurance where the annual premium is no more than $1,000 or where a single premium of no more than $2,500 is paid;
(iv) a Contract of Insurance for the purposes of a pension scheme where the contract contains no surrender clause and cannot be used as collateral;
(v) a Contract of Insurance which is a reinsurance contract not falling into (i) to (iv) which is ceded by an insurer who is a regulated Financial Institution;
(vi) a pension, superannuation or similar scheme which provides retirement benefits to employees, where contributions are made by an employer or by way of deduction from an Employee's wages and the scheme rules do not permit the assignment of a member's interest under the scheme; or
(vii) arbitration, litigation or advice on litigation prospects.
Public Listed Company Has the meaning given in Schedule 1 to the Regulatory Law 2004.
Registered Auditor Has the meaning given to that term in the Regulatory Law
Regulated Exchange Means an exchange regulated by a Financial Services Regulator.
Regulated Financial Institution A person who does not hold a Licence but who is authorised in a jurisdiction other than the DIFC to carry on any financial service by another Financial Services Regulator.
Relevant Person Has the meaning in Rule 1.1.2.
senior management Means, in relation to a Relevant Person every member of the Relevant Person's executive management and includes:
(a) for a DIFC entity, every member of the Relevant Person's Governing Body;
(b) for a Branch, the person or persons who control the day to day operations of the Relevant Person in the DIFC and would include, at a minimum, the SEO or equivalent, such as the managing director; or
(c) for a Registered Auditor, every member of the Relevant Person's executive management in the U.A.E.
Simplified Customer Due Diligence Means Customer Due Diligence as modified under Rule 7.5.1.
Single Family Has the meaning given to that term in the DIFC Single Family Office Regulations.
Single Family Office Has the meaning given to that term in the DIFC Single Family Office Regulations.
source of funds Means the origin of customer's funds which relate to a transaction or service and includes how such funds are connected to a customer's source of wealth.
source of wealth Means how the customer's global wealth or net worth is or was acquired or accumulated.
Subsidiary Has the meaning given in Schedule 1 to the DIFC Companies Law.
Suspicious Activity Report (SAR) Means a report in the prescribed format regarding suspicious activity (including a suspicious transaction) made to the AMLSCU under Rule 13.3.1(c).
transaction Means any transaction undertaken by a Relevant Person for or on behalf of a customer in the course of carrying on a business in or from the DIFC.
Derived from RM117/2013 [VER9/07-13]
[Amended] DFSA RM132/2014 (Made 21st August 2014). [VER10/06-14]