The Central Bank of the UAE (CBUAE) has issued a new anti-money laundering (AML) guidance for licenced financial institutions in the country.
The new guidance was devised to ensure effective implementation of AML and combatting the financing of terrorism (CFT) obligations.
Under the new guidance, the banks are required to develop internal policies and procedures to enable them manage money laundering and financing of terrorism risks.
These procedures must be commensurate with the size of the business.
Additionally, they can LFIs must identify suspicious transactions and activities and report them to the UAE’s Financial Intelligence Unit.
The new guidance also stipulates the banks to regularly screen their databases and transactions against names on lists issued by the United Nations Security Council or the UAE Government before conducting transactions or signing any deals.
The guidance became effective on 13 September. All licenced financial institutions must comply with the guidance within 30 days.
CBUAE governor Khaled Mohamed Balama 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.”
Earlier this year, HSBC issued the first green mortgages in the UAE. The lender approved three mortgages for customers purchasing homes.