Overview of Targeted Financial Sanctions by United Arab Emirates for non-financial business and professions -2021

For financial institutions and designated non-financial business and professions (DNFBPs).

The purpose of TFS is to deny certain individuals, groups, organizations, and entities the means to violate international peace and security, support terrorism or finance the proliferation of weapons of mass destruction. To achieve this, it seeks to ensure that no funds, financial assets, or economic resources of any kind are available to listed actors for so long as they remain subject to the restrictive measures.

UAE Law

Issued by the Executive Office of the Committee for Goods Subject to Import and Export Control
Executive Office of the Committee for Goods Subject to Important and Export Control, 2021
BurDubai – Umm Hurair
1 – Khalid Bin Al Walid St
Consulates Area in the Ministry of Foreign Affairs and
International Cooperation / Dubai Office
https://www.uaeiec.gov.ae/en-us/
Telephone: +971 44 040 040
Fax: +971 43574499
Email: iec@uaeiec.gov.ae
Issued on: 14 Jan 2021

Last amended: 6 May 2021

Overview of Targeted Financial Sanctions

The United Nations Security Council (UNSC) is one of the six principal organs of the United
Nations (UN) and has primary responsibility for the maintenance of international peace and
security. It has 15 Members, and each Member has one vote. Under the Charter of the United
Nations, all Member States of the UN are obligated to comply with the Security Council
decisions.

The UNSC holds the capacity to take action seeking to maintain or restore international peace
and security under Chapter VII of the Charter of the United Nations by imposing sanctioning
measures under Article 41. These measures encompass a broad range of enforcement options
that do not involve the authorisation of the use of armed force, including interruption of
economic relations, international communications and diplomatic relations.

The Security Council sanctions regimes focus mainly on supporting the settlement of political
conflicts, nuclear non-proliferation, and counterterrorism. These regimes include measures
ranging from comprehensive economic and trade sanctions to more targeted measures such
as arms embargoes, travel bans, and restrictions on dealing with certain financial or
commodity transactions.

The United Arab Emirates (UAE), as a member of the United Nations, is mandated to implement
UN Security Council Resolutions (UNSCR), including those related to the UN’s sanctions regimes.
Consequently, through the Cabinet Resolution No. 74 of 2020, the UAE is implementing relevant
UNSCRs on the suppression and combating of terrorism, terrorist financing and countering the
financing of proliferation of weapons of mass destruction, in particular relating to targeted
financial sanctions (TFS). Persons should note that, in accordance with the laws of the UAE, the
UAE Government also applies TFS by publishing a Local Terrorism List in accordance with UNSCR
1373 (2001).

The term TFS refers to asset freezing and other financial prohibitions, agreed upon by the UNSC,
to prevent funds or other assets from being made available, directly or indirectly, for the benefit
of listed individuals, groups and entities.

This guidance is therefore focused on the procedures to implement the UN and local TFS
regimes by all Persons (natural and legal) the UAE. Financial Institutions and DNFBPs are
obliged, by UAE law, to apply policies, procedures and controls to implement TFS to those
sanctioned and referred in the UN List and the Local Terrorism List.