The UAE Law defines Money Laundering as “any financial or banking transaction aiming at concealing or changing the true nature of the funds obtained by illegal means, by passing them through banking and financial system to make them appear as legitimate, and then injecting and investing them into legal activities to disguise their illicit origin”.
Money Laundering Crime is any act committed or attempted with the aim of concealing or disguising the true nature of funds obtained by illegal means and making them appear to have come from a legitimate source.
Prepared by Anti-Money Laundering and Combating Terrorism Financing Department
Ministry of Justice
1442 H – 2021 A.D.
CONTENTS
Money Laundering Concept
Predicate Offence
Money Laundering Stages
Financing of Terrorism and Illegal Organizations Concept
Designated Nonfinancial Businesses and Professions (DNFBP)
Relevant Legislation
Supervisory Authority
Anti-Money Laundering and Combating Terrorism Financing Department
International Organizations
Obligations and Duties of Lawyers
Identification, Assessment and Understanding of Money Laundering and Terrorism
Financing Risks
Identification and Assessment of Risks
Customer-Specific Risks
Risks Associated with the Nature of Products, Services or Operations and their Delivery Channels
Risks Associated with Countries or Geographical Areas and Delivery Channels
New Techniques
Risk Reduction
Establishment of Internal Policies, Controls and Procedures for Combating Money
Laundering and Terrorism Financing Crime
Concept of Due Diligence Measures
Customer Due Diligence Measures
Enhanced Due Diligence
High-Risk Customer
Politically Exposed Persons
High-risk Countries
Simplified Due Diligence
Ongoing Monitoring during the Business Relationship
Exemption from Identifying Shareholders, Partners or Beneficial Owners
What to do if Due Diligence Measures cannot be applied
Third Party Reliance
Engagement of Compliance Officer
Suspicious Transaction Reports
Responsibility to Report
Timing of Reporting
Financial Information Unit (FIU)
Handling Transactions after Submission of Suspicious Transaction Report
Requirements for New Techniques
Record keeping
Training & Awareness-Raising
Targeted Financial Sanctions
National and International Sanctions List
Online Platform of the Executive Council
Administrative Sanctions
Grievance against Administrative Sanctions
Penalties
Where to get Assistance or Further Information
Purposes of the Guide
This Guide is issued and published by the Ministry of Justice for the Designated Nonfinancial Businesses and Professions (Lawyers) to:
1- Ensure adherence to the Federal Decree Law no. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations, its Implementing Regulation issued by Cabinet Resolution no. (10) of 2019, and its Executive Resolutions;
2- Protect lawyers from the use of their law firms in Money Laundering and Terrorism Financing crimes;
3- Identify the core duties and obligations of lawyers in accordance with the Federal Decree Law no. (20) of 2018 and its Implementing Regulations and Executive Resolutions;
4- illustrate the reporting modalities and the mechanism for reporting suspicious transactions or suspicious activity;
5- Promote and protect the credibility and integrity of the financial system of the State; and
6- Explain the methods for identification, assessment and mitigation of Money Laundering and Terrorism Financing risks.
This Guide, and instructions and guidance contained therein, is not intended to create any other new legal obligations but has been prepared to illustrate and clarify the obligations and requirements stipulated in the Federal Decree Law no. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations, and its Implementing Regulation and Executive Resolutions. The content of this Guide is illustrative rather than exhaustive and does not therefore replace
The Federal Decree Law no. (20) of 2018 on Anti-Money Laundering, and its Implementing Regulation and Executive Resolutions.
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Once the violation by Lawyers is established in UAE, a reasoned decision shall be issued
UAE LAW
Undersecretary to impose any of the following administrative sanctions on the offender:
a. Warning
b. Administrative fine ranging between AED 50,000 (UAE Dirhams Fifty Thousand)and AED 5,000,000 (UAE Dirhams Five Million) per violation.
c. Preventing the offender from the exercise of profession in the relevant sector for the term stipulated in the decision.
d. Limiting the powers of directors whose liability for the violation is established. The
decision may include an appointment of a temporary controller.
e. Suspending the director whose liability for the violation is established, for the period specified by the decision or requiring his change, if permitted.
f. Suspending or limiting the practice of the profession for the period set out in the
decision.
g. Cancellation of the license.