Anti-Money Laundering In Dubai, UAE
Money laundering in Dubai is an illegal process that generates large sums of money through money laundering crimes such as terrorist financing or drug trafficking. It is a serious financial crime in the UAE, seriously damaging the growth rate of businesses and tax revenues. It is easy to see that the fight against money laundering in Dubai is damaging the reputation that a company has earned for years.
The United Arab Emirates is at the heart of international trade and commerce. The Emirati government is therefore continuously improving financial regulations and implementing them effectively to combat the risks associated with anti-money laundering in the Dubai region. These money launderers go through these three stages to clean their black money:
Transferring the dirty money to a legitimate financial institution. In simple words, the black money is funneled into legitimate companies and financial systems.
A series of transactions and accounting tricks are used to hide the source of the funds. At this stage, a complex web of transactions is set up to hide the original owner and source of the funds.
Criminals withdraw the laundered money from the legitimate account to use it. At this stage, the dirty money is mixed and integrated into the legitimate economy. This is done in a very deft way to ensure a proper explanation of the origin of the funds and where the money comes from. This is usually done by investing in real estate, precious metals such as gold, or, nowadays, cryptocurrencies.
Recent developments in anti-money laundering laws in the UAE
Anti-money laundering in the UAE is a risk for the planet as it turns billions of black money into white. That is why AML anti-money laundering laws have been developed in the UAE to make it harder to hide and avoid money corruption. Anti-money laundering laws in the UAE are essential protection for businesses. Financial institutions in the region have a crucial role to play in getting out of this pool of dirty money. As the UAE Central Bank has made very clear, it is targeting money laundering:
“A critical role of the UAE Central Bank is to ensure that all licensed institutions have a deep understanding of their role in mitigating and preventing the risk of illicit activities in the UAE financial system”.
In addition, there are also recent guidelines for licensed financial institutions that require companies to report directly to the UAE Financial Intelligence Unit and to complete a “suspicious activity report” on any suspicious activity within the company.
Penalties for money laundering and financial terrorism
The UAE strengthened its legal authorities in the fight against terrorist financing and money laundering in the UAE by circumventing harsh penalties. A person or group caught in a money laundering case must endure fifteen years in prison, suspension of their license, and a fine equal to the amount of the dirty money. UAE authorities have put in place smart systems to detect fake or multi-layered accounts hiding illicit assets. In addition, the perpetrators have to pay hefty fines of UAED 50 million for condoning this illegal activity. Get more information about Anti Money Laundering Laws and Penalties.
Natural and legal persons must go for AML Registration UAE
Companies subject to money laundering rules must be supervised by a supervisory authority. Companies fall into four categories that must register with the Anti Money Laundering AML. The following guide will help you decide whether you need to register.
Real estate agents and brokers
Real estate agents are required to have AML registration UAE when brokering immediate residences, selling or buying commercial land, and renting out any property in order to gain the trust of their clients.
Dealers in gold and other precious metals
All dealers in precious metals are subject to anti-money laundering registration, after which our advisers report any suspicious transactions or series of related transactions through Suspicious Transaction Reports (STR).
Ensure that all financial transactions and accounting records of companies are carried out legally. This AML good faith reporting protects companies from any financial crime.
Corporate service providers and trust funds
Registration in the UAE is mandatory for corporate service providers and trust funds that conduct business for clients.
Anti-money laundering registration in the UAE
In the UAE, all organizations regulated by the Central Bank or other institutions are required to register with the goAML system (the anti-money laundering system), which strategically monitors financial crime. To register with normal system, the following documents are required;
- A valid and active e-mail address of the nominee.
- An active mobile phone number (UAE or internationally acceptable).
- All supporting documents for the organization and the nominee are provided in a consolidated PDF file.
- Letter of authority from the institution
- Nominee details are to be provided as administrator and user of the system
- A valid copy of the passport
- Copy of a valid permanent residence visa
- Valid Emirates ID
- Valid business license
BestaxCA plays a key role in AML compliance in Dubai
Bestax Chartered Accountants always take satisfaction in improving your business’s compliance in Dubai to ensure that you do not get into trouble. Our AML professionals monitor client transactions and report suspicious financial activities, complying with all relevant anti-money laundering rules and regulations. We will analyze your company’s existing AML system in depth and make recommendations to facilitate the AML compliance process.
How do Bestax Chartered Accountants fight AML?
Bestax Chartered Accountants fully understand the implications of money laundering in the UAE market. Therefore, it provides quality AML compliance services in compliance with Dubai, Sharjah, and UAE regulations. There are some proven tactics that BestaxCA uses to combat money laundering:
Data analytics and transaction monitoring
Our AML specialists detect potential risks related to geographic locations and extract valuable information from them. We also closely monitor client transactions and accounts for any questionable activity that could be indicative of money laundering. This will help them detect money launderers, even if they use multiple PINs or connections for financial terrorism purposes.
Structured AML training
Bestax Chartered Accountants not only provide advice on AML compliance but also enhance your managers’ and employees’ knowledge of Federal Decree-law, anti-money laundering laws and regulations, Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD), Know Your Customer (KYC), and their verification. This tailored training to your industry helps you stay on the safe side and protect your business from any penalties.