What is Anti-Money Laundering Compliance

August 9, 2023 | 10 min read

What we often call anti-money laundering is a simplified general term, and its coverage also includes combating terrorist financing, proliferation financing of weapons of mass destruction, and targeting international financial sanctions compliance is a systematic project.

UAE anti-money laundering regulations require financial service providers to establish, maintain and implement anti-money laundering/anti-terrorist financing systems and procedures, which should mainly include the following eight aspects.

1) Corporate Governance System: Formulate and implement written systems regarding the respective anti-money laundering responsibilities and obligations of the board of directors/executives, anti-money laundering officers, outsourced service providers and employees.

2) Risk assessment: apply a risk-based approach to assess the risk of money laundering from four aspects: financial service providers themselves, customers, services/products, and methods or channels for providing such services/products.

3) Customer due diligence: implement customer identification and verification, and screen high-risk individuals (such as political figures) and sanctioned persons.

 4) Continuous monitoring: customer information update, transaction monitoring and risk assessment review.

5) Documentation and record keeping.

6) Reporting: Internal reporting by employees on suspicious activity, Money Laundering Reporting Officer/Money Laundering Reporting Deputy reporting to authorities, and prevention of tipping.

 7) Staff screening and training.

8) Compliance Audit: Conduct a compliance audit of the anti-money laundering practices of financial service providers.

It can be seen that anti-money laundering outsourcing services are far from covering all compliance work.

How MBG can help?

MBG can provide anti-money laundering compliance outsourcing services for financial institutions, including anti-money laundering customer due diligence. Drafting of various compliance documents, reports. Update anti-money laundering laws and regulations in the UAE and the Gulf region from time to time.

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