AFSA introduces series of amendments to the anti-money laundering rules
The amendments to the Rules cover the following areas:
Regulatory and supervisory powers. Regulatory and supervisory powers of the AFSA in respect of Designated Non-Financial Business and Professions (DNFBPs) are more clearly defined. The AFSA ensures compliance of the relevant AIFC Participants with this regime that addresses requirements regarding Anti-Money Laundering, Counter-Terrorist Financing, and the proliferation of weapons of mass destruction. (AML/CFT) responsibilities by using its various regulatory powers including by conducting reviews and inspections. It is also clarified that the AFSA may impose disciplinary sanctions and other actions if AML Rules are contravened.
Risk-based approach. The proposed amendments considerably expand the responsibility of Relevant Persons in a risk-proportionate manner. Thus, Relevant Persons will be responsible for managing and mitigating country-wide risks identified in the published reports and guidance given by the financial intelligence unit regarding the FATF mutual evaluations and follow-up reports and implementing enhanced measures where higher risks are identified. It is also proposed to explicitly require firms to manage and mitigate risks they identify during their risk assessment
Customer due diligence (CDD). The proposed amendments specifically underline the need to conduct CDD for occasional transactions the value of which singularly or in several linked operations (whether at the time or later), equal or exceed $15,000. In addition to conducting CDD it is required to conduct Enhanced Due Diligence when there are business relationships and transactions with persons from countries with high geographical risk factors.
Obligations to verify the identity of the customer and its Beneficial Owner (BO) have been explicitly stressed.
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