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    DPMS - AML PPT 3.7

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    DPMS - AML PPT 3.7

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    1 views11 pages

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    DPMS - AML PPT 3.7

    Uploaded by

    sandeepdasari3006

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Dealers in Precious Metals & Stones,

    Precious Safeguards: Navigating the


    UAE's Anti-Money Laundering
    Landscape
    Why is AML training critical for your employees

    Awareness of money laundering threats and mitigating measures is essential for any
    company to safeguard the business from being exploited by financial criminals.

    Awareness of threats allows people to use the right action plans to combat the same.

    AML Compliance Officer cannot single-handedly identify and fight the money laundering
    threats. He needs support from every single employee of the company.
    And here comes the need to train the employees. If you train your employees on money
    laundering threats, they can take steps to manage or reduce ML/FT risks.

    AML training is crucial to any organization’s overall AM/CFT framework.


    Importance of AML training

    Organized criminals launder dirty money into the financial system, using legit business
    organizations as their means. Without well-trained employees, business organizations
    could not detect such crimes being executed through them. An AML-trained employee
    would act as a line of defense and contribute towards making the company a hostile
    setting for laundering money.

    Some companies say they know all their clients and do not expect any threat from them.
    Some say that they are too small to conduct training for employees. Whatever the case
    is, AML training is vital to keep money laundering risks at bay.

    Financial criminals do not attack a business based on size or business-client relationship.


    They keep looking for new tactics to launder small or significant amounts of money
    through any method, with the only intention of not getting caught.

    So, every firm to whom AML regulations are applicable must conduct AML training for its
    employees, making employees capable enough to identify suspicious activities or
    transactions and report the same promptly.
    Importance of AML training

    It is mandatory for Designated Non-Financial Businesses and Professions (DNFBP’s), to


    comply with AML regulations and their requirements. As one of the requirements is to
    conduct ongoing AML training for the staff, all the obligated entities shall comply with the
    same to avoid non-compliance penalties and ensure a better AML framework to fight
    money laundering (ML) and financing of terrorism (FT).

    With all these requirements, employees need to know their role in fighting ML/FT and how
    to do their duties. They must know the trending anti-money laundering typologies to
    identify the threats in routine business operations quickly.

    To safeguard the business and its reputation, Companies need skillful and knowledgeable
    employees to implement a robust AML framework to safeguard the business from being
    exploited by money launderers.

    AML training brings a consistent understanding, across all levels, of the importance of
    AML compliance and their role in identifying ML/FT threats to save the company and its
    reputation. All the employees, including the senior management, stay more aligned with
    AML-related organizational objectives, resulting in the more successful adoption of the
    AML/CFT compliance program.
    Participants in AML training

    All the relevant employees handling customers, transactions, and delivery channels must
    receive adequate AML training, whether a full-time employee or a part-time or
    contractual one. If they, in any way, are involved in activities related to customer-
    servicing or business partner interactions, they must receive the necessary training
    around AML and CFT.

    As the AML Compliance Officer is the person running the show, he must be well-trained,
    well-qualified, and well-aware of the basic AML concepts, regulatory obligations, roles,
    and responsibilities to handle the AML/CFT framework of the company, etc.

    AML Training requirement is not just limited to front-line employees; AML training is also
    critical for senior management. Senior management is responsible for implementing an
    effective and comprehensive AML compliance program. They need to understand the
    basic concepts and regulatory requirements to efficiently manage the AML framework
    across the organization. Thus, senior management shall also be included in training
    programs and lead by example.
    AML Fines & Penalties in UAE

    AML compliance is mandatory for financial institutions, Designated Non-Financial


    Businesses and Professions (DNFBP), and other regulated entities. The UAE Ministry of
    Economy announced different Money Laundering Fines and Penalties in UAE. The
    Ministry has listed 26 categories of fines for violating the money laundering and terrorism
    financing laws.

    The UAE government monitors the AML compliance and has set up a specialised unit to
    investigate the control of DNFBPs, dealers in precious metals and stones, auditors, real
    estate agents and brokers, etc., as such businesses and professionals are prone to
    money laundering and corruption.

    Let’s know the different fines and penalties applicable in the UAE for violating AML rules
    and regulations.
    Money Laundering Fine of Dirhams 1 million or more

    When organizations fail to take appropriate


    actions for customers included in the
    international or local sanction lists – they
    must follow the due diligence process
    before starting a business relationship.

    If there is a dealing with unauthorized


    banks, AED 1 million or more fine is also
    applicable. The penalty is also applicable if
    bank accounts are opened or maintained
    using fake names, not the actual holders’
    names.
    Money Laundering Fines and Penalties of Dirhams 200,000 and above

    If the Enhanced Due Diligence process is not followed to identify the high-risk
    customers.
    If the FIU- Financial Information Unit is not informed of the STR- Suspicious
    Transaction Report in cases where the institutions cannot follow the customer
    verification process- due diligence process before creating or maintaining a business
    relationship or carrying out a transaction for the benefit of the client or in his name.
    If the FIU has asked for additional information for the reported suspicious transactions
    and organizations fail to comply, then a fine is also levied in such cases.
    Due to suspicions about the nature of the business relations- its process or intentions
    are disclosed directly or indirectly to the customer or a third party. In that case, such
    actions attract a penalty of AED 200,000 or more.
    If the measures identified by the National Committee for Combating Money
    Laundering regarding customers from high-risk countries are not implemented, the
    fines are levied.
    Money Laundering Fines and Penalties of Dirhams 100,000 and above

    If the requisite measures are not adopted for identifying risk and evaluating the same
    when the services are provided or undertaken with new professional activities.
    If the requisite due diligence measures are not taken for clients before establishing or
    continuing a business relationship or making a transaction that benefits the customer.
    If the customer identity and that of the UBO or their deputy is not verified before or
    while establishing a business relationship or before with a client with whom there’s no
    previous business relationship.
    If there’s a delay of information about the STR to the FIU in events where there’s a
    suspicion that the customer is related to crime wholly or partly- if there’s reasonable
    ground to suspect that the client money is involved in establishing the business
    relationship has been obtained from criminal activities.
    If the due diligence measures are not followed for PEPs-Politically exposed Persons
    before establishing or maintaining a business relationship.
    If proper records are not maintained on the financial transactions with the customers.
    Conclusion: Precious Metals, Precious
    Safeguards

    In conclusion, it is crucial for dealers in precious metals or


    stones in UAE to comply with Anti Money Laundering rules
    to prevent illegal activities.

    Our AML solutions assist in putting in place stringent


    monitoring procedures to ensure complete adherence to
    legal requirements.
    Thanks
    !
    Do you have any
    questions? @nrdoshi.com
    +971
    www.nrdoshi.ae

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