The Central Bank has established eight basic procedures that monitor the funds and future transfers of investments within the country. He stressed that setting the UAE as a major financial center in the region could expose it to financial crimes, so it is advisable to use official banking channels for remittances and other financial transactions.
In detail, the Central Bank said in response to Al-Ittihad Al-Youm that investors generally enter the country through financial institutions (banks and exchange companies), using international transfers between financial institutions operating in other countries that are subject to regulatory control. Those countries, and between the financial institutions operating in the State, which are subject to the control of the Central Bank.
The Central Bank, in turn, imposes broad obligations and procedures on these institutions, in accordance with its powers under the law, among other things:
Instructions for opening accounts and conducting transactions.
2 - Procedures to know the dealers and the nature of their activities and sources of income.
3 - Procedures to identify the real beneficiary of legal persons and legal arrangements.
4. Due diligence procedures for customers in the case of high risk traders according to the risk-based approach applied by these institutions.
5. Obligations to keep records and documents.
6. Obligations to report suspicious transactions to the Financial Intelligence Department of the Central Bank in the event of suspicion of an account or transaction, or attempt to deal with clients of such institutions.
7. Commitments for the immediate implementation of United Nations Security Council resolutions of the United Nations Security Council through immediate electronic monitoring of international accounts, transactions and transfers.
8. Commitments to implement ongoing training programs for all employees of these institutions, in particular those working in their Compliance Departments, and those concerned with countering money laundering and combating the financing of terrorism.
"These obligations and many other obligations are set out in the anti-money laundering and anti-terrorist financing measures issued by the Central Bank for the financial institutions authorized by it, and ensure that the state banking system is not abused by criminals anywhere , And inspection teams of the Central Bank to carry out inspections of office and field facilities, to ensure the application of these procedures, and the signing of various administrative sanctions on the violation ».
He pointed out that for the money that is entered in cash in the possession of travelers, the disclosure system is applied, which put an end to the disclosure of funds and precious metals in the possession of travelers arriving or departing from the country in accordance with international standards in other countries. The system, developed by the Central Bank, is regulated by customs authorities at all air, sea and land ports at the state level, and disclosure data are kept in an electronic database under the management of the Federal Customs Authority.
The disclosure system allows customs inspectors, in case of suspicion of funds transferred through the ports of the State, to take legal action towards their holders and refer the matter to the competent public prosecution in the State. Federal Law No. 20 of 2018, on countering the crimes of money laundering, combating the financing of terrorism and financing of illegal organizations, provides for a penalty of imprisonment and fines for anyone violating the disclosure system.
The Central Bank said that the UAE is considered a major financial center in the region, which may expose it to this type of financial crime. Accordingly, appropriate measures have been put in place to address money laundering. Therefore, to avoid any suspicion of money laundering, The official banking channels are used to carry out remittances and other financial transactions and to follow the instructions and procedures issued by the concerned official and supervisory authorities in the State regarding countering money laundering and combating the financing of terrorism, including ensuring the legality of the entity being dealt with by official bodies Concerned.
Training programs for employees in institutions on how to counter money laundering.
The Central Bank recommends the use of banking channels to conduct remittances and financial transactions.