CB has issued guidelines against money laundering

The Central Bank of the UAE (CBUAE) has issued guidelines against money laundering.

 The guidelines were issued to licensed financial institutions against financing terrorism.

 LFI (licensed financial institutions) have to prove compliance with its requirements within one month.

 The guidance focuses on the money laundering and financing of terrorism risks associated with payments and countermeasures that LFIs should apply to mitigate such risks.

 New payment products and services may pose risks to the financial system due to the rapid movement of funds between payment partners and across borders.

 Approach to mitigating and controlling money laundering and terrorist financing risks.

 LFIs are responsible for conducting due diligence on customers, monitoring all transactions conducted or processed through LFIs, and reporting suspicious transactions to the Financial Intelligence Unit of the UAE.

 They should conduct a routine risk assessment to cover all payment products, services, relationships, and exposure to domestic and foreign payment sector partners.

 They should also have a sanctions compliance program in place with operational systems that screen transactions appropriately and transmit the necessary information throughout the payment cycle.