AML 10.3.1 Guidance
1. The purpose of this Rule is to ensure that a
Relevant Person takes into consideration the broad range of tools used by competent authorities and international organisations to communicate AML/CTF risks to stakeholders.
2. The Rule also permits the
DFSA to require enhanced due diligence or other specific countermeasures to address risks identified in a specific country or jurisdiction. The DFSA may impose such countermeasures either when called upon to do so by FATF or independently of any FATF request.
Relevant Persons considering transactions or business relationships with persons located in countries or jurisdictions that have been identified as deficient, or against which the U.A.E. or the DFSA have outstanding advisories, should be aware of the background against which the assessments, or the specific recommendations have been made. These circumstances should be taken into account in respect of introduced business from such jurisdictions, and when receiving inward payments for existing customers or in respect of inter-bank transactions.
Relevant Person's MLRO is not obliged to report all transactions from these countries or jurisdictions to the FIU if they do not qualify as suspicious under the Federal AML legislation. See AML chapter 13 on Suspicious Activity Reports.
5. Transactions with counterparties located in countries or jurisdictions which are no longer identified as deficient or have been relieved from special scrutiny (for example, taken off sources mentioned in this Guidance) may nevertheless require attention which is higher than normal.
6. In order to assist
Relevant Persons, the DFSA will, from time to time, publish U.A.E., FATF or other findings, guidance, directives or sanctions. However, the DFSA expects a Relevant Person to take its own steps in acquiring relevant information from various available sources. For example, a Relevant Person may obtain relevant information from the consolidated list of financial sanctions in the U.A.E Cabinet, European Union Office, HM Treasury (United Kingdom) lists, and the Office of Foreign Assets Control (OFAC) of the United States Department of Treasury.
7. In addition, the systems and controls mentioned in AML Rule 10.3.1 should be established and maintained by a
Relevant Person taking into account its risk assessment under chapters 5 and 6. In AML Rule 10.3.1, taking reasonable measures to comply with a finding may mean that a Relevant Person cannot undertake a transaction for or on behalf of a person or that it may need to undertake further due diligence in respect of such a person.
Relevant Person should be proactive in obtaining and appropriately using available national and international information, for example, suspect lists or databases from credible public or private sources with regard to money laundering, including obtaining relevant information from sources mentioned in Guidance 6 above. The DFSA encourages Relevant Persons to perform checks against their customer databases and records for any names appearing on such lists and databases as well as to monitor transactions accordingly. As set out in the Guidance after Rule 10.2.1, a Relevant Person may use a database maintained elsewhere for an up-todate list of sanctions or to conduct checks of customers or transactions against the list. However, it retains responsibility for ensuring the effectiveness of its systems and controls.
9. The risk of terrorists entering the financial system can be reduced if
Relevant Persons apply effective AML strategies, particularly in respect of CDD. Relevant Persons should assess which countries carry the highest risks and should conduct an analysis of transactions from countries or jurisdictions known to be a source of terrorist financing.
DFSA may require Relevant Persons to take any special measures it may prescribe with respect to certain types of transactions or accounts where the DFSA reasonably believes that any of the above may pose a money laundering risk to the DIFC.