UAE: UAE Central Bank issues new guidance on transaction monitoring and sanctions screening

The Central Bank of the UAE (CBUAE) on Monday issued new guidance on transaction monitoring and sanctions screening for its licensed financial institutions (LFIs).

The guidance is effective as of Monday, September 13, and requires LFIs to demonstrate compliance with CBUAE’s requirements within a month.

The guidance says that LFIs are obliged to develop internal policies, controls, and procedures that are commensurate with the nature and size of their business that is approved by their senior management, to enable them to manage their identified money laundering and financing of terrorism risks, according to state-run news agency WAM.

LFIs must also put in place indicators to identify suspicious transactions and activities in order to file report it to the UAE’s Financial Intelligence Unit.

Additionally, 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 an 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.

The original full article can be found at gulfbusiness.com

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