Abu Dhabi - Mubasher: Sheikh Khalifa bin Zayed Al Nahyan, the President of the UAE, on Tuesday issued the Federal Law No. (20) of 2018 on anti-money laundering and countering the financing of terrorism.
The new law requires individuals entering or leaving the GCC country to declare the amount of cash, monetary or financial bearer instruments, precious metals or stones of value they are carrying, as per the regulations set out by the UAE’s central bank, according to an official statement.
The law establishes the “National Anti-Money Laundering Committee”, under the chairmanship of the Governor of the central bank, with a mandate in combating money laundering and countering terrorism financing, along with its authority in preparing the national risk assessment (NRA), as a fundamental requirement of the FATF recommendations, the statement added.
In addition, it requires the expansion of obligations of licensing and control bodies to include the development of a risk-based approach and applying it to licensed enterprises.
The decree-law defines a perpetrator of a money-laundering offense as any person who is aware that the money was derived from a felony or misdemeanor, and intentionally commits one of the following acts: transferring or transporting proceeds of crime with intent to conceal or disguise the illicit origin thereof; and / or the concealment or disguise of the true nature, origin, location, way of disposition, movement or rights related to any proceeds or the ownership thereof; and / or the acquisition, possession or use of such proceeds.
The law also recommends the establishment of an independent "Financial Information Unit" within the central bank to receive and investigate all reports submitted by financial institutions and other corporate establishments regarding suspected illicit financial activity and share this information with the relevant law enforcement departments.
The new law demands that the financial institutions and specific non-financial businesses and professions to continuously identify, evaluate, document and update crime risks in their area of business, undertake due diligence and determine their scope based on multiple risk aspects, and are prohibited to open accounts or conduct any financial or commercial transaction, anonymously or by a pseudonym or number, retain or provide any services to them, according to the statement.
“This law is part of the country’s strategy to protect the local financial system by applying the best and most efficient systems to fight crimes, which negatively affect the economy and political and financial stability of countries”, Sheikh Hamdan bin Rashid Al Maktoum, deputy ruler of Dubai and minister of finance, said.
Sheikh Hamdan also pointed out that this decree is in line with the requirements and recommendations of the Financial Action Task Force (FATF).
