Especially with regard to countering money laundering and combating the financing of terrorism
The Central Bank issues new guidelines for licensed exchange companies
Khaled Balama: "We are working to ensure that all licensed exchange companies in the UAE understand their responsibilities towards combating money laundering."
The Central Bank has issued new guidelines regarding countering money laundering and combating the financing of terrorism for licensed exchange companies, explaining that the new guidelines, which entered into force as of yesterday, contribute to the licensed exchange companies' understanding of risks and the effective implementation of their legal obligations related to countering money laundering and combating terrorist financing.
The Central Bank stated, in a statement, that these guidelines take into account the standards and directives issued by the Financial Action Task Force (FATF), and that licensed exchange companies are required to prove their compliance with the new requirements within one month from the date of their issuance.
The new guidelines stipulate that licensed exchange companies rely on an effective program to combat money laundering and combat the financing of terrorism, designed for the purposes of preventing the exploitation of this activity to facilitate money laundering or terrorist financing.
These firms should apply a risk-based approach, by conducting a regular assessment covering all risks related to the exchange business, including customers, products, services, delivery channels, new technologies, geographic risks, counterparties and illicit finance.
"We are working to ensure that all licensed exchange companies in the UAE understand their responsibilities towards combating money laundering and combating the financing of terrorism, and put in place effective programs to identify and mitigate the risks of these activities on their operations, and fully comply with their legal obligations," said CBE Governor Khalid Muhammad Balama.
Today's program
The “Anti-Money Laundering and Combating the Financing of Terrorism” program includes establishing a dedicated compliance department, conducting customer due diligence, as well as continuously examining transactions, fully complying with the UAE’s requirements regarding targeted financial sanctions, and reporting suspicious transactions.
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