Money laundering is defined as: “Any financial or banking transaction aimed at concealing or altering the origin of illegally obtained funds by passing them through the financial system to make them appear legitimate, and subsequently reinvesting them in legal activities that are inconsistent with their true nature.”

According to a Circular Issued by the Ministry of Finance, the following business sectors are subject to AML regulations:

• Brokers and Real Estate Agents
• Dealers in Precious Metals and Precious Stones
• Independent Accountants
• Providers of Corporate Services

Compliance Requirements:

Businesses operating in these sectors must adhere to the AML regulations, which include the following steps:

1. Appoint a Compliance Officer
   The appointed officer must perform duties as outlined under Article 21 of the Implementation Regulations No. (10) of 2019 for Federal Decree-Law No. (20) of 2018.

2. Implement Due Diligence Measures
   Businesses must carry out due diligence procedures as required by the Implementation Regulations No. (10) of 2019 for Decree-Law No. (20) of 2018.

3. Report Suspicious Transactions
   Guidelines for reporting suspicious activities are provided in Chapter Three, Article 13, Chapter Four, Article 15, and Chapter Five, Articles 16 and 17 of the regulations.

Note: Failure to comply with the above requirements may lead to the suspension of your business license, as directed by the Ministry of Economy and the relevant licensing authorities.

Deadline and Penalties:

• The deadline for registration on the GoAML Platform is 31st March 2021.
• Failure to register before this date will result in a financial penalty ranging from AED 50,000 to AED 5 million.

How Litrix Consultancy Can Help:

Navigating the registration and compliance process for AML regulations can be complex, requiring specialized knowledge and expertise. Our team of qualified professionals at Litrix Consultancy is here to assist you with every step. We can help you with:

• Risk Assessment
• Preparation of Policies and Procedures to mitigate the risk of money laundering
• Transaction Review
• Know Your Customer (KYC) and Customer Due Diligence (CDD) Checks

Let Litrix Consultancy guide you through the compliance process and ensure your business meets all regulatory requirements.