AML/CFT Compliance in Sharjah
In Sharjah, AML/CFT compliance is a must for all businesses. It is important to ensure that the business is compliant with the anti-money laundering and counter-terrorism financing regulations set by the government. To do this, companies need to have a reliable AML compliance solutions provider in UAE.
What is Money Laundering and How Does It Work?
Money laundering is the act of concealing the origin of illegally earned money. Let’s say a financial criminal has earned money through drug smuggling, trafficking, etc. and wants to hide the black money from law enforcement bodies. For this, the criminal will devise a strategy and place it in a bank account, casino or even invest it somewhere. Money laundering works in the following three stages:
Placement: This is the first stage where black money is segregated into small amounts and placed in a financial infrastructure like a bank.
Layering: Now, black money is transacted multiple times through sales and purchases. For instance, the fraudster might convert some amount of money into bank drafts or invest in real estate as well.
Integration: This is the final stage when illegal money is brought into the economy. Integration is done by fake loans, shell companies, bogus invoices, etc.
Who enforces and governs the UAE anti-money laundering laws?
Under the Central Bank of UAE, the Anti-Money Laundering and Countering the Financing of Terrorism Supervision Department (AMLD) implements and administers UAE anti-money laundering laws and regulations and the UAE AML/CFT Guidelines 2021.
What is the foundation to the AML/CFT framework in UAE?
AML/CFT framework in the United Arab Emirates is governed by the Federal Decree No. (20) of 2018 on Combating the Financing of Terrorism and Financing of Illegal Organizations along with the implementation of Cabinet Decision No.  of 2019.
Who are required to comply with the AML/CFT Regulations?
The AML/CFT Regulations apply to financial institutions and designated non-financial businesses and professions.
How to monitor money laundering?
It is possible to monitor information and profiles about your company, screen Sanctions, PEP, and Watchlists, monitor negative news relating to your company, your partners, and your suppliers, search legal databases, and analyze the backgrounds of individuals involved in the project.
Who is a Compliance Officer?
Financial Institutions and DNFBPs are required by the AML/CFT Law to appoint a Compliance officer with adequate expertise and knowledge in-house or outsourced to implement appropriate policies and procedures and to conduct periodic assessments and reports in order to ensure that the entity is complying with AML/CFT laws.
What is a Sanction List?
Sanction lists include names of individuals, entities, and countries that are intended to prevent business transactions with such entities, individuals, or countries due to their association with terrorism, human rights violations, narcotics trafficking, etc. All entities registered in GoAML are required to subscribe to the local list and the UN Security Council’s list, as per the AML/CFT law.
What Happens if a Company Fails to Comply with these Laws?
AML/CFT law in UAE prescribes both temporary and unalterable punishments, including temporary imprisonment for no longer than 10 years and fines between AED 100,000 (one hundred thousand) and AED 50,000,000 (fifty million).
Why Choose Us?
At AFS Auditing, we offer comprehensive AML/CFT compliance services to help businesses comply with the relevant laws and regulations. Our team of experts provides end-to-end solutions for AML screening and supervision, ensuring that all transactions are monitored in real-time and that any suspicious activity is flagged immediately. We also provide advisory services on best practices to ensure ongoing compliance with local laws and regulations. With our expertise, you can be sure that your business will remain compliant with all applicable AML/CFT regulations in Sharjah.
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