goAML System: Anti Money Laundering Registration UAE
Failure to register on goAML may result in severe penalties invoked by the Ministry of Economy.
According to the Ministry of Economy, the last date to register in the goAML system was April 30, 2021. However, registrations are still being accepted by the MoE.
(As per UAE Misinstry of Economy)
About goAML
UAE contributes to global anti-money laundering efforts and combats financing…
Deadline for the goAML
According to the Ministry of Economy, the last date to register in the goAML system was April 30, 2021. However, registrations are still being accepted by the MoE.
Determine if you likely to be a Designated Non-Financial Businesses and Professions (DNFBP)
Are you a real estate firm?
Your firm carries out transactions with customers involving the buying or selling of real property. For example, real estate brokers and agents.
Are you an auditing or accounting firm?
You provide professional services and assurance to third parties on the financial of them and/or their business.
or example, chartered accountants, accountants, auditors etc.
Are you a dealer of precious metals or stones?
You are involved in the production of precious metals or precious stones, an intermediate buyer or broker, precious stone cutter and polisher, precious metal refiners, and/or jewelry manufacturer who use precious metals and precious stones to retail sellers to the public or buyers and sellers in the secondary and scrap markets. These include gold, silver, platinum, diamonds etc.
For example, jewelry stores.
Are you a Trust or Company Service Provider?
You are involved in providing company establishment and / or business administration services to third parties.
For example, company or legal person set up / formation, providing 3rd party directorships, business administration, providing registered business address services etc.
Are you a legal consulting company (Except Lawyers and Notary Publics)?
If your company conducts legal consulting company only and is not pleaded in the judicial courts
Note: If you are registered with the Ministry of Justice, you do not have to register with the Ministry of Economy.
You are likely NOT a DNFBP.
Note: this is guidance and not legal advice, we recommend you obtain independent legal advice.
You are likely to be a DNFBP. To Register on goAML
Note: this is guidance and not legal advice, we recommend you obtain independent legal advice.
Why register on goAML
Registration in the 'goAML' system, filing suspicious transaction reports through it.
Fines
In accordance with the Economy Ministry, fines range from 50,000 to one million AED.
Anti-Money Laundering and Counter-Terrorist Financing
UAE has been working on strategies to combat Illegal funding of organizations and money laundering activities and comply with the standards (Financial Action Task Force). In its mission to achieve this objective, Financial Intelligence Unit (FIU) was established under CBUAE (Central bank of UAE) to regulate and monitor entities that are most likely to be impacted/involved directly or indirectly in aiding such activities in the economy.
In this effort, Federal Decree-law no. 20 of 2018 on Money Laundering, financing terrorism, and illegal organizations was introduced, which revoked previously issued Federal Decree-Law no. 4 of 2002.
Therefore, it is essential to note that all regulated entities, including financial institutions (FIs) and the Designated Non-Financial Businesses and Professionals (DNFBPs), must implement robust AML-CTF policies and controls within their activities and document them.
What is Money Laundering?
Money Laundering has three essential phases, and all regulated entities need to look for specific indicators that might hint towards an activity being suspicious and need monitoring/investigation.
According to the Ministry of economy, "Money laundering refers to any financial or banking transaction intended to cover up or disguise the source of illegally obtained funds, to avoid detection of them through the financial and banking systems and to re-buff and reinvest them.”
The three phases include:
- Placement: Deposit Criminal proceeds into financial systems.
- Layering: Conceal the criminal origin of proceeds.
- Integration: Create an Apparent legal origin for criminal proceeds.
The Decree-Law defines a culprit of a money-laundering offense as any person who is aware that the money was originated from a felony or misdemeanor and intentionally commits one of the following acts:
- Transmitting or carrying proceeds of crime with intent to cover up or mask its illicit source
- Obscuring or cloaking the true nature, origin, location, way of disposition, movement, or rights related to any proceeds or the ownership thereof
- Acquiring, possessing, or using such proceeds
- Aiding the offender of the predicate offense to escape penance.
Regulated Entities
- Financial Institutions (FIs)
- Designated Non-Financial Businesses and Professionals (DNFBPs)
All FIs and DNFBPs registered in UAE have certain obligations which need to be fulfilled to avoid violation of laws and regulations enforced:
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Firstly, it is essential to register on the goAML system.
- FIU develops GoAML System to make suspicious transaction/activity reporting more convenient for the regulated entities.
- Secondly, appoint an independent and qualified Compliance officer.
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Develop strong internal controls, policies, and procedures and implement including:
- Know your Customers (KYC)/Employees
- Sanctions Screening
- Training and monitoring
- Customer due diligence
- Risk management procedures
- Reporting Suspicious transactions
- Register in the automatic system for reporting sanctions list
Ministry will conduct regular inspections of all DNFBPs to assess how these obligations are fulfilled and measures to ensure compliance and violations are penalized.
The policies and procedures that should be implemented can be categorized as follows:
- Customer Acceptance Policies and Risk Assessment/Categorisation
- Know your Customer Policy: Due Diligence measures for identification and Verification
- Customer Screening against Sanction lists
- Monitoring Policy and Suspicious Transaction Reporting
- Know your employee Policy
- Staff Training Policy
- Compliance officer and Independent Internal audits
As we know, Control and planning need to be conducted side by side, as planning without Control is unlikely to be effective and Control without proper planning.
So DNFBPs are expected to plan appropriate controls and procedures to overcome the threat of money laundering or illegal financing activities and monitor them regularly to ensure they are implemented and updated whenever required.
Designated Non-Financial Businesses & Professions Of Entities Operating In The State
According to Article 3 Cabinet Decision No. (10) of 2019, a DNFBP is a firm that conducts one or more of the following activities.
- Real Estate agent involved in buying and selling of real estate.
- Dealer of precious metals and stones.
- Company Service Providers.
- Auditors and accountants.
- Legal Consultancy Firms (Except for Lawyers and Notary Publics)
Above mentioned DNFBPs have two main requirements:
- To complete the registration on the ‘goAML’ system
- To report suspicions of money laundering or terrorist financing is a criminal offense.
Failure to do any of the above will be considered by the MOEas an infringement of Article 20(2) of the Cabinet Decision No. (10) of 2019 for failing to put procedures in place for reporting the Suspicious Transactions.
What is goAML?
The United Nations Office on Drugs and Crime (UNODC) built the 'goAML' anti-money laundering reporting platform to combat organized crime. All financial entities and Designated Non-Financial Businesses or Professions must register on ‘goAML.’ The platform will assist the UAE's Financial Intelligence Unit in hindering money laundering, financing terrorism, and other unlawful activities.
The goAML System Registration
The UAE's Ministry of Economy (MoE) has launched an awareness and monitoring campaign to enable registered Designated Non-Financial Business and Professions (DNFBPs) in the UAE to register with the Financial Intelligent Unit (goAML) system. It also encourages targeted groups to write in the design of the Committee on Goods Subject to Import and Export Control (Automatic Reporting System for Sanctions Lists) and to take action in accordance with both the provisions of Federal Law No 20 of 2018 on the fight against money laundering, terrorist financing, and the sponsorship of criminal organizations, as well as the legislation and related decision-making rules and regulations.
Why register on goAML
You must register to submit suspicious transaction reports (STRs) to the goAML system. goAML is an internationally recognized electronic method for collecting and analyzing financial and non-financial data to prevent money laundering and combat the financing of terrorism. You should be aware that there are two goAML registration stages.
- The registration stage in the goAML portal's protection system (SACM)
- The registration stage in the goAML system.
goAML Registration Deadline
According to the Ministry of Economy, the last date to register in the goAML system was April 30, 2021. However, registrations are still being accepted by the MoE.
Money laundering punishment in UAE
The Ministry of Economy has stipulated heavy penalties for organizations that fail to comply with the Anti-Money Laundering (AML) and Combating Financing of Terrorism requirements by the due date. Violators of anti-money laundering or ultimate beneficial owner procedures may face administrative fines ranging from AED 50,000 to AED 1,000,000, according to the Ministry of Economy (MoE).
Cabinet Decision No. (16) of 2021 Regarding the Unified List of the Violations and Administrative Fines for the Said Violations of Measures to Combat Money Laundering and Terrorism Financing Subject to the Supervision of the Ministry of Justice and the Ministry of Economy.
How to register in goAML System data
In relation to the Anti Money Laundering, we will Perform Preliminary assessments of your business in fulfilling and complying with the process, procedures, and submission of your goAML Declaration. We are here to help you and your business comply with Anti Money Laundering system requirements efficiently and professionally.
UAE Central Bank issues updated guidance on AML/CTF
By including the Financial Action Task Force (FATF) standards in the updated guidance, which came into effect on the 1st of August-2022, LFIs will understand risks better and ensure they are meeting their statutory obligations in terms of Anti-Money laundering and counter-terrorism financing.
According to the newly issued guidance some of the key preventive measures that should be implemented by LFIs to mitigate the money laundering and the financing of terrorism risks relating to payments include, but not limited to, the following:
- Risk-based Approach should be taken when managing the risks involved.
- Should Conduct Regular Risk Assessments to cover all the payment products, services, relationships, and exposure to domestic and foreign payment sector participants.
- Conduct Regular Due diligence on customers, monitoring all transactions processed or conducted through the LFIs.
- Reporting suspicious transactions to the UAE’s Financial Intelligence Unit.
- Put in place a sanctions compliance program with operational systems that appropriately screen transactions and transmit required information throughout the payment cycle.
- In correspondent relationships, LFIs should not process any payments for a correspondent unless they are entirely confident that the correspondent conducts appropriate screening.
*Note: These preventive measures should be integrated into an LFI’s AML/CFT compliance program and supported with governance and training*