Economy 8 violations were issued against a gold trading facility for violating the provisions of the Money Laundering and Unlawful Regulations Law
The Ministry of Economy is carrying out an extensive inspection campaign on the establishments of the "DNFBP" sector to ensure their compliance by registering in government regulations approved for countering money laundering and combating the financing of terrorism and illegal organizations, and following due diligence procedures that enable it to file suspicious activity reports, after the end of the period. Let the beginning of the month of May, which extended for three months.
The inspection campaigns resulted in the violation of a number of establishments for not following the registration procedures and measures necessary to counter money laundering, and the campaign detected violations estimated at one million and 350 thousand dirhams for a huge group of gold trade in Dubai that includes 3 companies at a rate of 450 thousand dirhams per company, for violating 8 items of the executive regulations For the Anti-Money Laundering and Combating Terrorism and Illegal Organizations Law.
The items of the violations included the following: failure to take the necessary measures and procedures to determine the risks of crime in the field of his work (100 thousand dirhams), failure to reduce the risks (100 thousand dirhams), failure to establish internal policies, controls and procedures commensurate with the size of its business to enable it to manage risks (50 thousand dirhams) Failure to take the necessary measures and procedures to reduce the risks identified according to the results of the national risk assessment or to the results of the self-assessment of the nature and volume of its business (50 thousand dirhams), failure to take the necessary measures to understand the purpose and nature of the business relationship, or when seeking information related to this purpose when The need (50 thousand dirhams).
Violations also included the failure to create an independent audit function to test the effectiveness and efficiency of internal policies, controls and procedures for combating crime (50 thousand dirhams), failure to create records to save financial transactions with clients in an irregular manner that does not allow data analysis and tracking financial operations, and failure to keep records of financial transactions. And the documents and documents related to them for a period of five years from the date of completion of the process or the termination of the business relationship with the customer or from the date of the end of the inspection process on his facilities (50 thousand dirhams).
The Ministry of Economy called on establishments to speed up the amendment of their conditions in order to avoid the violations and penalties stipulated in Federal Law No. 20 of 2018 regarding countering money laundering, combating the financing of terrorism and financing illegal organizations, and its executive regulations and related decisions, which start from 50 thousand dirhams and reach 5 million dirhams and may reach Penalties include suspension of the license or closure of the facility, indicating that a grievance may be made for violations within the legal period specified within 15 days from the date of notification of the violation in accordance with the executive regulations of the law.
Safia Al-Safi, Director of the Money Laundering Department at the Ministry of Economy, confirmed the continuation of the ministry's campaigns to ensure that companies comply with the provisions of the Federal Law and its implementing regulations, noting that the inspection campaigns aim to ensure that the sector facilities follow the regulations in place in the matter of countering money laundering, in order to ensure the safety and transparency of transactions In the commercial sector, in the designated non-financial business and professions, and to address illegal and unsound practices and suspicious activities.
She indicated that registering in the approved regulations and following the necessary procedures is a national duty for all sector establishments, as it supports the state's file globally in the matter of countering money laundering and combating terrorist financing, enhances its position in relevant global indicators and contributes to strengthening international confidence in the UAE economy, confirming the ministry’s keenness to Intensify communication with the business sector and specific non-financial professions during the coming period and follow-up on the sector's implementation of the due diligence measures that follow registration in the systems approved for this matter.
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