In accordance with new legislation, financial institutions are now required to do due diligence on real estate and precious metals enterprises.
Dubai (UAE) – The United Arab Emirates (UAE) is a member of the United Arab Emirates (UAE). These rules are intended to decrease risks while also ensuring that anti-money laundering and counter-terrorism financing (AML/CFT) duties are adequately implemented.
To comply with the new guidelines, all licenced banks and financial institutions are required to carry out appropriate customer due diligence and report any suspected money laundering or terrorism financing or criminal activity to the UAE’s Financial Intelligence Unit by submitting suspicious activity reports directly to the Financial Intelligence Unit through the “goAML” portal.
The UAE Central Bank announced new guidelines on Tuesday for banks and financial institutions that provide services to real estate and precious metals and stones enterprises. The instructions are effective immediately.
In addition to reducing risks, these rules are intended to ensure that anti-money laundering and counter-terrorist financing (AML/CFT) duties are met in an effective manner.
To comply with the new guidelines, all licenced banks and financial institutions are required to carry out appropriate customer due diligence and report any suspected money laundering or terrorism financing or criminal activity to the UAE’s Financial Intelligence Unit by submitting suspicious activity reports directly to the Financial Intelligence Unit through the “goAML” portal.
The regulator emphasised that licenced financial institutions (LFIs) that provide services to the real estate and precious metals and stones sectors should assess the associated money laundering and terrorist financing risks and develop an effective anti-money laundering and counter-terrorist financing programme that includes a competent compliance officer and provides LFIs’ employees with training on the risks involved.
Remember that real estate agents, brokers, and precious metals and stone dealers who are certified as designated non-financial enterprises and professions are overseen by the UAE Ministry of Economy, which publishes the necessary rules and regulations.
On February 6, Minister of State Ahmed Ali Al Sayegh and Governor of the Central Bank of the UAE Khaled Mohamed Balama presided over a meeting attended by the CEOs of all onshore financial institutions in the UAE to highlight the country’s anti-money laundering and counter-terrorist financing efforts, with a particular emphasis on the private sector’s critical role in strengthening the UAE’s AML/CFT system.
“Ensuring that all licenced financial institutions understand their role in minimising and responding to the danger of illicit activities in the UAE’s financial system is a vital component of the Central Bank of the UAE’s mandate,” says the bank. In order to strengthen the efficacy of licenced financial institutions in contributing to the strict regulatory environment, this guideline is designed to serve as a significant point of reference for those providing services to the real estate, precious metals, and stones sectors.
The standards and guidelines of the Financial Action Task Force have also been incorporated into the recently issued guidance for the real estate, precious metals, and gemstone industries, among others (FATF).
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