Sanction Screening in UAE | AML UAE

In this video, we will be discussing the #Sanctionsscreening requirements under the AML regulations.
Sanctions compliance is a crucial aspect of the AML framework, focusing on restricting the establishment of a business relationship with designated individuals and entities mentioned in the UAE Local Terrorist List and the UNSC Consolidated List.
These sanctions lists are to be screened in the following instances:
1. When there is any update in these lists
2. Before onboarding new customers or processing any transaction with an existing customer
3. When the customer’s information changes.
The entire sanctions screening exercise can be bifurcated into four elements:
First, all natural and legal persons in the UAE must subscribe to the Executive Office for Control & Non-Proliferation (EOCN) to receive updates on the changes in the Local Terrorist List or UNSC Consolidated List.
Sanctions Screening Process:
The second aspect of sanctions compliance is screening, which can be done either manually or using AML software basis the following key identifiers-
- Name and aliases
- Nationality,
- Date of birth or incorporation,
- Place of incorporation.
The screening would have three possible outcomes, depending on which the companies shall undertake necessary action and determine the reporting requirements.
The third critical aspect of sanctions implementation is the action to be performed by the regulated entities. If an existing customer is found to be sanctioned, the regulated entities shall freeze the financial resources of the designated person and prohibit any further provision of the services or funds.
If a newly approached customer is found to be sanctioned, the company shall reject such designated person and not onboard such person.
In case of a partial match, where some of the identifiers match but the company is unable to conclude whether the person screened is the same as the one in the sanctions list, the company shall suspend all business relationships with such person (whether new or existing customer) until receipt of any further instructions from the Financial Intelligence Unit.
Please note that the action to freeze the funds, suspend the transaction or the customer’s rejection shall be performed within 24 hours of identification of the confirmed or partial match.
The last part of sanctions compliance is timely reporting to #FIU
In case of a confirmed or partial match with the sanctions list, the company is obligated to report the designated person, freezing measures applied by the company, etc., with FIU within five working days from when the company took action.
The companies should file the following reports on the goAML portal:
a. Fund Freeze Report (FFR) in cases of confirmed sanction match,
b. Partial Name Match Report (PNMR) in cases where some screening identifiers match, and the company cannot conclude on the screening results.
In cases where the sanctions screening does not show any matches, the companies are not obligated to report anything. Still, they should maintain this “No match” result and proceed further with the due diligence process.
Trust that this video helped you understand the Sanction compliance process in the UAE. Stay tuned for more videos on AML CFT framework in UAE. For details, visit our website www.amluae.com or contact us at [e-mail].
Timestamps:
0:00 Sanction Screening Intro and Instances
0:47 Subscribing to the Executive Office
1:07 Sanction Screening Process
1:36 Sanctions Implementation process
2:36 Timely Reporting to FIU
2:55 Filing reports on the goAML portal
3:16 Conclusion
#AMLUAE #uaeaml #sanctionscompliance #goamlportal #uaefiu #amlcdd #eocn #amlcdd #uaefinancialintelligenceunit #uae

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