AML CTF Policy

Introduction

In the global marketplace, the attempted use of financial institutions to launder money is a significant problem that has caused great alarm in the local as well as the international community and has resulted in the passage of stricter laws and increased penalties for money laundering in UAE, Europe, United States, Australia, and many other countries. It has also spurred the formation of the Financial Action Task Force on Money Laundering, an intergovernmental body comprised of 39 members and 8 regional organizations established to coordinate the global battle against Money Laundering and Terrorist Financing.

The requirement to combat money laundering and terrorist financing

Money laundering and terrorist financing are global problems. Concerted attempts to prevent money laundering and terrorist financing are being made throughout the world by various governments and international organizations. These include the United Nations and the OECD Countries. The UAE’s legislation and strategy is based on the regulations of the Central Bank of United Arab Emirates “CBUAE” and other international standards, best practices and initiatives. All financial institutions are required to play their part in preventing criminals and terrorists from using their products and services and in detecting and reporting suspicious activity(s)

Our Compliance Team

Al Amal Express Exchange have a strong Compliance Team, the Compliance Officer is approved by the Central Bank of The UAE and the staff supporting him are CAMS Certified including our Risk Team. The Compliance Officer together with his Team are responsible for implementing the AML/CFT Compliance framework.

What is “know your customer” and why is it necessary?

Having sufficient KYC information and making effective use of that information underpins all other anti-money laundering procedures. It is the most effective weapon against being used to launder the proceeds of crime or for terrorist financing. It also offers protection against fraud, enabling suspicious activity to be recognized, and protects the Exchange from risks to reputation and finances.

Monitoring transactions and activity

The most important safeguard against money laundering is the ability to detect suspicious transactions and activity. Once detected it is vital that further action is taken to report the suspicions and prevent recurrence of such activity.

Checking against sanction lists

AAEE must have regard to notices issued by UN, OFAC & EU sanctions, otherwise the Exchange runs the risk of breaching international sanctions legislation to which the UAE is subject to. AAEE must also adhere to CBUAE sanctions. Likewise, the Exchange must adhere to any specific prohibition notices or any other advisories relating to the country of operation. The Central Bank of UAE regularly circulates black listed names and the financial.

The Central Bank of UAE regularly circulates black listed names and the financial institutions are required to maintain an internal black list accordingly and continuously update this list with any new circular from the CBUAE.

The Office for Foreign Asset Control (OFAC) in the USA also issues lists of individuals and entities for whom transactions or other business must not be conducted. To protect the interests of our customers and of AAEE, AAEE also checks all transactions against the OFAC lists. Further details of the applicability of OFAC sanctions can be found in AAEE’s separate policy document – Sanctions Policy and Procedures.

Checking against the sanctions lists is particularly important in guarding against terrorist financing activity. It is a criminal offense to provide services, or to undertake transactions or activity, for any person or organization whose name appears on a sanctions list. Any customer that appears on the sanctions lists must be reported to the FIU.

The duty to report suspicions

There are criminal penalties for failure to report a potentially suspicious transaction to the MLRO without a reasonable excuse. Furthermore, such a failure could lead to disciplinary action by AAEE and the CBUAE. It is then the responsibility of the MLRO to decide whether to make a Suspicious Activity Report (SAR) or a Suspicious Transaction Report (STR).

Awareness raising and training

To make all management and staff aware of their legal obligations and what is expected from them to prevent money laundering. In addition, to advise them of the consequences for them and for the Exchange if they fall short of that expectation.
To provide initial and annual update training for all appropriate personnel. This includes all personnel who set up and manage customer relationships, handle transactions, instructions and or other activity.
To ensure that training is relevant and tailored to the day-to-day activities of those who are being trained.
To ensure that any agents or representatives are aware of the anti-money laundering and counter-terrorist financing policies of AAEE and of its relevant procedures.
Management and staff must sign a memorandum confirming they have read and understood the anti-money laundering and counter terrorist financing policies and procedures.
Management and staff must sign a memorandum confirming the date and nature of their anti-money laundering training.

Record keeping

To retain identification, transaction and activity documentation for the minimum period required by the Regulations which is 5 years from the date of transaction.