Reporting of suspicious transactions and activities
The requirement to lodge a Suspicious Transactions Report and/or Suspicious Activity Report (STR/SAR) with the UAE Financial Intelligence Unit (the UAE FIU) is contained in UAE Federal Law No. 20 of 2018, UAE Federal Cabinet Decision No. 10 of 2019, and Section 13 of the AML Module. As mentioned above, Federal Anti-Money Laundering Legislation applies directly in the DIFC pursuant to Article 70 and 71 of the Regulatory Law.
Suspicious transactions and activities must be reported electronically to the UAE FIU via the GoAML portal. Registration on the GoAML portal is mandatory for all Relevant Persons.
The GoAML portal is intended to enable the FIU to:
• strengthen and broaden its capability to meet and discharge its legislative objectives and functions;
• ensure that the UAE’s financial system stays relevant and effective in the fight against money laundering and terrorism financing;
• collaborate more effectively with various stakeholders such as reporting entities, supervisory bodies and law enforcement agencies; and
• standardise and streamline all reporting requirements and ensure that the UAE is aligned with the Anti-Money Laundering and Combatting of Terrorist Financing standards of the Financial Action Task Force (FATF).
Given the DFSA is the competent authority for the administration of Federal Anti-Money Laundering Legislation as it applies to Relevant Persons in the DIFC, the DFSA is also the responsible Supervisory Body for accepting: (i) pre-registrations to allow Relevant Persons to access the GoAML portal; and (ii) registrations for all Relevant Persons on the GoAML portal (post pre-registration formalities).
Relevant Persons should contact the DFSA via the Supervised Firm Contact Form for further information regarding registration on the GoAML portal.
Please keep in mind:
AML Rule 13.3.1 of the AML Module, which obligates Relevant Persons to notify the DFSA immediately following the submission of a STR/SAR to the UAE FIU. Guidance on how to complete the SAR/STR Notification Form is available via the DFSA ePortal User Guide. Please refer to this link for further guidance: How to notify the DFSA that a STR/SAR has been filed with the UAE FIU.
Relevant Persons are reminded that the failure to report suspicions of money laundering or terrorist financing may constitute a criminal offence that is punishable under the laws of the UAE.
INTERNATIONAL SANCTIONS
UN Security Council Resolutions
As a member state of the United Nations (UN), the UAE is committed to implementing the UN Security Council Resolutions (the UNSCRs). In each circumstance where the UN Security Council decides to impose measures in response to a threat, a UN Security Council Committee oversees the sanctions regime. Each sanctions committee established by the UN Security Council will publish the names of individuals and entities listed in relation to that committee and information about the specific measures that apply to each listed name.
The UN Security Council maintains a consolidated list of all individuals and entities subject to measures imposed by the UN Security Council (UNSC Consolidated List). The consolidated list may be accessed here.
In furtherance of the above, and for the purposes of administering the UNSC Consolidated List and UAE list of designated terrorist individuals, organisations and groups (the UAE List), the UAE implemented Federal Cabinet Resolution No. 74 of 2020 (Resolution 74/2020) (Arabic link). Which requires Financial Institutions and DNFBPs to take certain specific actions, including to:
1. register on the Executive Office’s website in order to receive notifications related to new listing, re-listing, updating, or de-listing decisions issued by the UN Security Council, UN Security Council Committees and the UAE Federal Cabinet;
2. regularly screen their databases and transactions against names on lists issued by the UN Security Council, UN Security Council Committees or the UAE List, and also immediately when notified of any changes to such lists;
3. immediately notify the DFSA (as the relevant Supervisory Authority), of the following:
a. Identification of funds and actions taken pursuant to applicable UNSCRs and decisions of the UAE Federal Cabinet regarding the UAE List, including attempted transactions.
b. When a match is made to any persons or entities appearing on any UN Security Council list or the UAE List, actions taken pursuant to applicable UNSCRs and the UAE List, including attempted transactions.
c. Where it becomes aware that a previous customer or any occasional customer it dealt with, is listed on any UN Security Council list or the UAE List.
d. Where it suspects that a current or former customer, or a person it has a business relationship with, is listed or has a direct or indirect relationship with any person appearing on any UN Security Council list or the UAE List.
e. Where no action has been taken due to a false positive, and the inability to dismiss such false positive through available or accessible information.
f. Information relating to funds that have been unfrozen, including their status, nature, value and measures taken, and any other information relevant to such decisions;
4. establish and effectively implement internal controls and procedures to ensure compliance with the requirements of Resolution 74/2020; and
5. cooperate with the Executive Office and the DFSA in verifying the accuracy of submitted information.
The FCP Team issues email announcements to all Relevant Persons upon receiving notification of any changes to the UNSC Consolidated List. Relevant Persons may view the relevant Financial Crime Prevention Notices and MLRO Letters here.
Registration - Executive Office’s website
Relevant Persons are required to register on the Executive Office website to receive updates to the UNSC Consolidated List.
Please keep in mind:
The DFSA wishes to emphasise that the particular obligations set out above are not all encompassing. Each Relevant Person, and its senior management and staff, are responsible to ensure that they are and continue to be properly informed as to, and take required measures with regard to, relevant resolutions and sanctions issued by the UNSC, and other applicable national and international competent authorities and organisations on sanctions compliance.
UAE’S LIST OF TERRORIST INDIVIDUALS & ENTITIES
In compliance with UN Security Council resolution No. 1730/2006 and pursuant to UAE Federal Law No. 7 of 2014, the UAE publishes the National Sanctions List containing the names of individuals and entities identified as terrorist and associated with proliferation of weapons of mass destruction.
The UAE List may be accessed via the Official Federal Gazette issued by the Ministry of Justice. The Consolidated List includes all individuals and entities subject to measures imposed in compliance with Cabinet resolution No. 74 of 2020 and is also made available on the UAEIEC Executive Office Website.
The FCP Team issues email announcements to all Relevant Persons upon receiving notice of any changes to the UAE List. Relevant Persons may access the relevant Financial Crime Prevention Notices and MLRO Letters here.
Registration - Executive Office’s website
Relevant Persons are required to register on the UAEIEC Executive Office website to receive updates to the UAE List.
OVERVIEW – TARGETED FINANCIAL SANCTIONS REPORTING
Reporting of any positive or potential sanctions hit
Relevant Persons have the obligation to report to the DFSA any positive or potential sanctions hit on any related party immediately and within 24 hours of listing.
Further, pursuant to Cabinet Resolution 74 of 2020, Relevant Persons are required to report to the DFSA any action taken regarding frozen funds, or any measures taken in compliance with prohibition requirements pursuant to the present Decision, including attempted transactions Without Delay. “Without Delay” means within 24 hours of the Listing decision being issued by the UN Security Council, the Sanctions Committee or the Cabinet, as the case may be.
Relevant Persons should notify the DFSA through the Sanctions Notifications Form that is available on the DFSA ePortal. Guidance on how to complete the Sanctions Notifications Form is available via the DFSA ePortal User Guide.
Delisting an Individual/Entity from the UN Security Council Sanctions list
Relevant Persons can refer to the process as set out on the on the UAEIEC Executive Office website.
Delisting an Individual/Entity from the UAE National Sanctions list
Relevant Persons can refer to the process as set out on the on the UAEIEC Executive Office website.
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