The Central Bank of the UAE (CBUAE) has issued new guidelines on transaction monitoring and sanctions screening for its licensed financial institutions (LFIs). The objective is to enhance the LFIs’ understanding and implementation of their AML/CFT obligations. The new guidelines have come into effect on September 13, 2021 and the LFIs have one month from this date to comply.
LFIs must develop internal controls and policies that match the nature and size of their business and that allow them to effectively address their identified ML/TF risks. LFIs must also identify indicators that they will use to detect suspicious transactions. Moreover, LFIs must regularly check their databases and transactions against sanctions lists issued by the UAE Cabinet (UAE Local Terrorist List) or by the United Nations Security Council (UN Consolidated List) before conducting business with any entity.
Overall, LFIs must implement adequate transaction monitoring and sanction screening programs. These programs must be updated based on continuous risk analysis. They should also focus appropriately on employee training and board supervision.
Source: Central Bank of the UAE