- Home
- Middle East
- UAE
- CBUAE issues new guidance for licensed financial institutions on transaction monitoring and sanction ..
CBUAE Issues New Guidance For Licensed Financial Institutions On Transaction Monitoring And Sanctions Screening
Faizan Hashmi Published September 13, 2021 | 06:00 PM
ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 13th Sep, 2021) The Central Bank of the UAE (CBUAE) has issued a new guidance on transaction monitoring and sanctions screening for its licensed financial institutions (LFIs).
The Guidance aims to promote the understanding and effective implementation by LFIs of their statutory anti-money laundering and combatting the financing of terrorism (AML/CFT) obligations.
The guidance has come into effect on 13th September and requires LFIs to demonstrate compliance with CBUAE’s requirements within one month from said date.
LFIs are obliged to develop internal policies, controls, and procedures that are commensurate with the nature and size of their business that are approved by their senior management, to enable them manage their identified money laundering and financing of terrorism risks. LFIs 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.
In addition, LFIs are obliged to regularly screen their databases and transactions against Names on lists issued by the United Nations Security Council and its relevant Committees (UN Consolidated List) or by the UAE Cabinet (UAE Local Terrorist List) before conducting any transaction or entering into a business relationship with any client, whether it is individual or corporate.
As stipulated in the guidance, LFIs should establish and maintain effective transaction monitoring and sanction screening programs consisting of a well-calibrated risk-based framework, training and awareness of their employees and active oversight by their board. In addition, LFIs should ensure the ongoing enhancement of their transaction monitoring and sanctions screening systems based on their risks. The systems, including the relating monitoring and screening models used should be subject to independent testing, validation, and auditing.
Khaled Mohamed Balama, Governor of the CBUAE, said, "As we continue to enhance the effectiveness of AML/CFT measures to safeguard the UAE financial system, we expect licensed financial institutions to fulfil their duties as well. This guidance serves as a key point of reference for licensed financial institutions to ensure their compliance with AML/CFT requirements."
To view the Guidance, please click on the following link: https://www.centralbank.ae/en/cbuae-amlcft.
Related Topics
Recent Stories
HEC reviews curricula for environmental sciences degree programme
ICC Asia looking forward to an action-packed Asia Cricket Week
Yuvraj Singh named ICC Men’s T20 World Cup 2024 Ambassador
Greece hands Olympic flame to 2024 Paris Games hosts
Two Kyiv hospitals evacuating over feared Russian strikes
World must act on neurotech revolution, say experts
Charles & Catherine's cancer diagnoses
Champions Alcaraz and Sabalenka through in Madrid Open
King Charles to resume some public duties during cancer treatment: palace
US defense chief announces $6 bn in security aid for Ukraine
Heavy rains cause damage to Spezand-Taftan railway track
Woman stabbed in Israel, attacker killed: police
More Stories From Middle East
-
UAE announces ‘Zero Bureaucracy Program’ to reduce bureaucracy
3 months ago -
COP28 President-Designate welcomes Transitional Committee agreement to operationalise Loss and Damag ..
6 months ago -
Global Media Congress 2023 to feature Co-Production Majlis as a new networking platform
6 months ago -
Young female athletes shine at Abu Dhabi World Youth Jiu-Jitsu Championship
6 months ago -
King of Jordan receives Abdullah bin Zayed and ministers participating in Arab coordination meeting
6 months ago -
Abdullah bin Zayed participates in coordination meeting of Arab foreign ministers, joint meeting wit ..
6 months ago
-
3rd annual conference of Emirates Society of Clinical Microbiology kicks off in Dubai
6 months ago -
SIBF 2023 hosts Nobel laureate to discuss emergence of ‘Afrofuturism’ in global discourse
6 months ago -
ALC announces winners of Kanz Al Jeel Award 2023
6 months ago -
SIBF turns spotlight on remarkable contributions of women
6 months ago -
Global assets in spot bitcoin ETFs hit $4.16 billion
6 months ago -
Rescuers struggle to find Nepal quake survivors as deaths reach 157
6 months ago