UAE banks have one month to comply with new transaction monitoring and sanctions screening guidelines

The UAE Central Bank has issued new guidelines to financial institutions on transaction monitoring and sanctions screening.

Banks must demonstrate compliance with the central bank’s requirements within one month of 13 September when the guidelines came into effect.

Bank obligations

The guidelines urge banks to develop internal policies and procedures to manage risks in their anti-money laundering and counter financing of terrorism (AML/CFT) operations.

Financial institutions must develop internal policies, controls and procedures that are commensurate with the nature and size of their business that are approved by their senior management. This should enable them to manage their identified money laundering and financing of terrorism risks.

Suspicious transactions

Banks must also put in place indicators to identify suspicious transactions and activities in order to file suspicious transaction and activity reports or other report types to the UAE’s Financial Intelligence Unit.

They must also regularly screen their databases and transactions against names on lists issued by the UN security council or by the UAE cabinet before conducting any transaction or entering into a business relationship with any client, whether it is individual or corporate.

Financial institutions should also establish and maintain effective transaction monitoring and sanction screening programmes consisting of a sound risk-based framework, training for employees and active oversight by their board.

Laws and regulations related to UAE Central Bank’s AML/CFT operations can be found here.

Categories: Trade Based Financial crimes News

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