AML Compliance Requirements for Jewellers in UAE
AML Compliance Requirements for Jewellers in UAE
The industry of gems and jewellery, and precious metals and stones is a key contributor to the UAE’s economy. But, it is also an attractive point for illicit activities and financial crime. So, jewellers must protect themselves from money laundering and terrorism financing activities.
In this article, we focus on the factors that make the jewellery industry vulnerable to money laundering activities. We will list the regulations that govern AML compliance in UAE. We will also enlist the AML requirements that jewellers have to fulfill to comply with AML regulations.
Factors contributing to the higher vulnerability of jewellery industry to financial crime
All the above factors make the jewellery industry an attractive means of money laundering activities. So, the UAE government introduced relevant regulations to combat such activities. These regulations run parallel to the global AML/CFT regulations.
Also read why gold is still the second-best mode for money launderers
AML regulation for jewellers in UAE
Decree-Law No. 20 of 2018on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations is the primary law for AML in UAE. The Cabinet Decision No. 10 of 2019 concerning the Implementing Regulation of this Decree-Law makes dealers in precious metals and stones (DPMS) subject to the AML law. This means that the AML law applies to jewellers and dealers in precious metals, gems, and stones.
The Guidelines for Designated Non-Financial Businesses and Professions mentions the Customer Due Diligence (CDD) obligations for jewellers. But, they must also be aware of the ways to identify suspicious transactions followed by reporting. In the next section, we describe the compliance requirements for jewellers in UAE.
AML UAE –
Facilitators of AML compliance for your business
AML compliance requirements for jewellers in UAE
AML Policy Documentation
Jewellers need to document their AML Policy and prepare an AML Policy Manual describing the procedures and controls embedded to counter the risk of money laundering.
The jewellers must implement necessary measures to manage and mitigate the ML/FT risks. One of the key measures is the implementation of strong and effective internal policies, controls, and procedures. You must assess these policies for effectiveness and update them accordingly as and when the need arises.
The AML Policy Manual should cover the following areas:
- The identification and assessment of ML/FT risks
- Customer due diligence (CDD, EDD, SDD), including its review and updating, and reliance on third parties in regard to it
- Customer and transaction monitoring and the reporting of suspicious transactions
- AML/CFT governance, including compliance staffing and training, senior management responsibilities, and the independent auditing of risk mitigation measures
- Record-keeping requirements
Read more about AML/CFT Policy
Understand possible ML/FT Risk Exposure
Implement customer due diligence measures
These due diligence measures include the following:
Report suspicious transactions to Financial Intelligence Unit (FIU)
Devise and implement a sound governance structure
Effective AML consulting services
make your business dealings brighter, smoother, and better
Keep and maintain records
Role of AML UAE
AML UAE is a leading AML compliance services provider in UAE. We help you with fulfilling all the requirements for AML and CFT in UAE. Our spectrum of AML compliance services is not restricted to national boundaries, but we also make sure that you comply with the global regulations of AML.
We can help you with:
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Frequently Asked Questions (FAQs)
Here are a few frequently asked questions when it comes to the need and importance of sanction and PEP screening in the customer onboarding process.
The jewelry industry’s AML guidelines in UAE include the creation of an AML/CFT policy manual, understanding of possible ML/FT risk exposure, implementation of CDD measures, reporting of suspicious transactions to FIU, formulation of a governance structure, and record-keeping to ensure jewelry industry’s compliance with jewelry industry’s anti-money laundering laws.
Whenever you engage in a business relationship with a new customer or associate, obtain the following information:
- Date and place of birth
- Name of company or business, its address, and nature, and type
- Personal contact details
- Passport details or any other Identification document
- Purpose of the transaction
- Beneficial owner
In the case of a transaction with a company, you must collect the following details:
- Business name and address
- Registration number and details
- Nature of business
- Beneficial owners
- Partners and directors
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About the Author
CISA, FCA, CS, DISA (ICAI), FAFP (ICAI)
Pathik is a multi-disciplinary professional with more than 22 years of experience in compliance, risk management, accounting, system audits, IT consultancy, and digital marketing. He has extensive knowledge of Anti-Money Laundering rules and regulations, and he helps companies comply with legal requirements. Pathik also helps companies generate value from their IT investments.