It includes 26 violations related to business sector activities and non-financial professions

Al-Eqtisadiah reveals irregularities regarding anti-money laundering and combating terrorist financing

The Ministry emphasized the importance of following up on post-registration procedures and measures to avoid fines.

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Yesterday, the Ministry of Economy announced a list of 26 violations related to the activities of the business sector and specific non-financial professions supervised by the Ministry, in relation to the anti-money laundering and combating terrorist regulation file, in accordance with the provisions of the Federal Decree-Law in the matter of countering money laundering crimes and combating terrorist financing Financing illegal organizations, its executive regulations and related decisions.

The ministry stated in a statement that these activities include four main categories: brokers and real estate agents, dealers of precious metals and gemstones, auditors, and companies' service providers.

The Ministry called on companies in the targeted activities and works to intensify their efforts by enhancing awareness and knowledge of the dangers of money laundering and keeping pace with the government's efforts in this file, indicating that the first steps required are registration in the financial information unit (goAML) system and the committee for goods and materials subject to import and export control (reporting system) Automated Sanctions Lists).

The ministry added that the grace period for registration in the two systems is extended until March 31, 2021, indicating that companies that do not register before the specified date will be subject to penalties up to suspension of the license and closure of the facility.

She stressed the importance of following up on post-registration procedures and measures to avoid the fines contained in Cabinet Resolution (No. 16) for the year 2021, which start from 50,000 dirhams and reach one million dirhams, and can be doubled to five million dirhams.

The Director of the Anti-Money Laundering Department at the Ministry of Economy, Safia Al-Safi, said that the department is committed to answering the inquiries of all stakeholders and assisting the target companies to achieve the requirements of the law, by receiving their calls on the ministry's call center number: (800-1222), calling on the concerned companies to Setting internal policies, procedures and controls to avoid money laundering risks in accordance with the steps and measures set forth in the executive regulations of the law, which can be viewed on the official website of the Ministry of Economy.

List of violations and fines

The list of violations includes three items with a fine of one million dirhams:

Dealing with phantom banks in any way.

Opening or maintaining bank accounts under pseudonyms.

Failure to take measures pertaining to clients listed on international or local sanctions lists before establishing or continuing a business relationship.

The list included five violations, with a fine of 200,000 dirhams, which are:

Lack of enhanced due diligence measures for high risk management.

- Failure to inform the Financial Information Unit of a suspicious transaction report.

Failure to respond to the additional information requested by the Financial Information Unit.

- Disclosure, directly or indirectly, to the customer or to others about reporting on the customer.

Failure to apply the measures set by the National Committee to Combat Money Laundering.

Also on the list were seven violations of 100 thousand dirhams, which are:

Failure to take the necessary measures to determine the risks of crime.

Failure to identify and assess the risks that could arise.

Failure to take due diligence measures towards clients.

Failure to verify the identity of the customer from a reliable and independent source.

Delay in informing the Financial Information Unit of a suspicious transaction report.

Failure to apply due diligence measures towards politically exposed clients.

Not creating records to save financial transactions with clients.

The list includes 11 violations of 50 thousand dirhams, including:

Failure to take the necessary measures and procedures to reduce risks.

Failure to establish internal policies, procedures and controls aimed at combating crime.

Failure to take simplified due diligence measures to manage low risk.

Failure to take the necessary measures to understand the purpose and nature of the business relationship.

Failure to take the necessary measures to understand the nature of the client's work.

Failure to take due diligence measures for continuous monitoring towards clients.

Not appointing a compliance officer.

- Create records to save financial transactions with clients in an irregular manner.

Failure to keep records of financial transactions, documents and documents.

Unavailability of information related to customer due diligence.

- Failure to train the facility’s personnel on countering money laundering and combating terrorist financing.

The Ministry set the grace period for registration in anti-money laundering regulations until March 31, 2021.

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