KYC Transformation From Manual KYC Checks to Automated

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Published On: 09/06/2022

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Last Reviewed On: 08/19/2026 | Last Updated On: 08/19/2026

KYC Transformation

The significance of customer due diligence measures has increased more than ever because of the government’s strict stance and the emphasis on adherence to the AML laws. Customer due diligence is a statutory obligation under Article 19(1)(b) of Federal Decree-Law No. 10 of 2025, with the detailed measures set out in Articles 6 to 15 of Cabinet Resolution No. 134 of 2025. Ongoing monitoring of the business relationship and its transactions is required under Article 19(1)(b) of Federal Decree-Law No. 10 of 2025 and Article 14 of Cabinet Resolution No. 134 of 2025. The regulation has become broad to combat money laundering and counter-terrorist financing. Business organizations may find it hard to keep pace with the evolving AML laws and regulations, control related costs, and offers a seamless onboarding experience to ensure high customer satisfaction.

Entities must follow the AML regulations to avoid penalties and fines and protect their organization from being exploited by criminals for illicit gains. The criminals are adopting new ways to launder money and are using technology rampantly to make their illegal proceeds appear legal and later use the same to fund criminal and terrorist activities.

As the money laundering typologies are changing, there is a need to upgrade the KYC process to deal with the new challenges posed by criminals smartly. Let’s discuss how the KYC process – the essential requirement of the AML laws – can be improved and how this can help combat the rising money laundering cases.

We live in a constantly evolving digital space where digitization has seeped into business operations so deep that we cannot imagine the business landscape without it. But there is still some reluctance on the part of the companies that rely mainly on human resources to solve business problems. AML compliance will not succeed if it solely depends on human resources and manual efforts. Therefore, it needs technology as its foundation to construct the robust AML/CFT framework.

Employees can leverage the technology to help the business comply with the evolving AML rules and regulations. The best way to keep pace with the AML rules and protect the organization from being vulnerable to criminals is to rely on appropriate AML software. AML consultants can help you with the proper AML software selection.

AML Software

Relying entirely on human resources to deal with the AML challenges and implement the complex rules can be overwhelming for businesses. Moreover, the accuracy might be lower as manual effort without or minimum reliance on technology will fail to deliver the desired results.

AML software is available at budget-friendly prices, and even small businesses can afford the software and implement it in their organization. Moreover, the software will surely improve the efficiency and effectiveness of AML compliance and relieve the workforce from investing a lot of manual effort into the AML compliance procedure.

The AML software will help the companies to stay AML compliant with automation, ensuring that the workforce is available to focus on other business-critical functionalities.

For instance, the AML software can conduct searches through various national and international sanction lists and screens the customer list in a few seconds. It leads to saving several hours of manual effort that can be allocated to other complex challenges that require human intervention.

The software will help you keep pace with the complex AML laws of various jurisdictions and help you streamline the AML compliance process at all levels.

The AML software will help you create a smooth online process for customer onboarding and ensure high customer satisfaction. The adverse customer experience at the initial stage of building a customer relationship would make sense of panic amongst the customers, who would be hesitant to continue their business association for a longer term. Moreover, too much dependency on manual efforts can lead to inaccuracies in detecting money laundering activities, leading to reputational damage and monetary costs in terms of penalties and fines.

But operational leaders can improve the KYC process and enable the onboarding team to derive insights into the customer details, accurately complete the KYC process, and detect forged identities and documents. They can streamline the KYC workflow by automating the KYC process with the AML software equipped with capabilities to ensure that every AML process is diligently completed. The manual work is completed considerably less, and businesses can make decisions based on real-time information.

Relying on the AML software that works on emerging technologies such as AI, enterprises can ensure AML compliance at cost-efficient prices.

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KYC Automation Advantages

With automation, there are several benefits that businesses can get, and they can achieve complete AML compliance. Technology will improve the KYC process drastically and help the company comply with the AML rules at every stage of the customer relationship journey.

Better CX:

Businesses streamline the customer onboarding process, and with continuous monitoring, they can keep a tab on the customer profile and track any changes in it.

With AML compliance at the software’s core, businesses can ensure that they make the customer onboarding process much faster and cost-efficient without bothering the customers. They can drastically reduce the onboarding durations and get complete insights into the customer profile in a short period.

Quick customer onboarding with minimal correspondence creates a good impression in customers’ heads. Moreover, the compliance team can efficiently handle high-risk customer profiles and avoid errors with the help of AML technology.

Efficient Risk Management:

A business must thoroughly evaluate the customer profile before commencing business relationships. They also have to continuously monitor the customer profiles throughout the business relationship to monitor the customer behavior and track any changes.

The AML software will help businesses in accurate and efficient risk management. Technology-based KYC processes reduce human intervention and the errors from it. With correct risk management with the help of tools, businesses can achieve full AML compliance and protect their organization from being sabotaged by criminals. With access to a broad set of customer data points, companies can track customers’ changing profiles more efficiently and identify money laundering instances in real time.

Improved Efficiency:

Automation saves a lot of time and resources for a business. Often AML compliance is considered a financially draining process, and companies find it overwhelming too because of the several complexities and changing AML guidelines.

AML regulations are updated based on the current economic and worldwide political scenarios. Therefore, businesses must update their AML compliance process and keep pace with the amendments. By relying on AML technology, companies can instantly improve their efficiency in AML compliance and make their process more accurate and result-oriented, aligned with ever-evolving laws.

Boost Productivity:

Manually managing the AML compliance process is a time-consuming process. Businesses must allocate human resources dedicated to collecting, organizing, storing, and retrieving customer data. Verifying the customer’s identity will not help the AML compliance process if done manually.

Technology will automate all the functions and bring more efficiency into compliance. The technology empowers a business to manage the compliance steps seamlessly with more accuracy and comparatively less time. It speeds up the customer onboarding process, helps in accurate risk management of individuals and entities, and monitors the changing customer behavior throughout the customer journey. Further, the time saved by switching to technology can be diverted to more critical business operations.

Cost-efficiency:

One of the most significant advantages of AML compliance technology is that it offers substantial financial improvement. Businesses can drastically cut compliance costs and provide a smooth onboarding process.

Let AML UAE; the AML compliance experts help you build a strong business case for AML and KYC compliance transformation.

KYC is a crucial part of an organization’s structure. If you need to carry out the KYC transformation successfully, you must consider several factors. You should outline the objectives and the requirements for your KYC improvement process. The goals should define what you should achieve and the effect you want to have on the current KYC process. It is crucial to have clear expectations from the KYC transformation process and set a budget for it.
Other factors that businesses should consider are resource allocation, such as the number of resources required to manage the KYC transformation process.
You must also decide on the technology you will use for KYC improvement. Several AML software available in the market can help you make the KYC compliance process robust and help identify any fake or forged identity documents at the very onboarding stage.
The business also needs to keep track of the progress made in the KYC improvements with well-defined KYC processes. With specific timelines and goals, the management of the KYC transformation journey becomes easy and smooth.

Conclusion: KYC Automation is the key

If you need more information about automation in the AML compliance process, you can contact AML UAE. We are one of the leading AML compliance services providers in UAE. We have helped many businesses adopt technology and streamline their AML compliance process. With automation, they have cut compliance costs and achieved full AML compliance with substantial improvement in their KYC process and overall AML framework.

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

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10 Organizations Working to Fight Financial Crimes and Prevent Money Laundering

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Published On: 08/31/2022

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Last Reviewed On: 08/20/2026 | Last Updated On: 08/20/2026

10 Organizations Working to Fight Financial Crimes and Prevent Money Laundering

Money Laundering is a global issue, and many organizations are working relentlessly to fight financial crimes and combat money laundering. Financial frauds are rising as criminals use innovative ways to launder money. These organizations act as watchdogs and include compliance professionals and AML trainers contributing in their capacity to combat money laundering, financial crimes, and terrorism funding. Let’s discuss the top 10 organizations working in the compliance field and helping the world economy from falling prey to the activities of criminals who may be tax evaders, money launderers, terrorists, or other criminal organizations.

Let’s know about 10 critical organizations working to fight the menace of money laundering – a global issue that impacts the world economy.

1. Financial Action Task Force (FATF)

The Financial Action Task Force is a famous international organization that prevents financial crimes and money laundering. The organization assists authorities in the fight against various criminal activities such as the rampant trade of illegal drugs, extortion, human trafficking, etc., and financing of terrorism. It makes policies to prevent financial crimes but needs the support of the governments to implement these policies. The FATF recommendations help fight organized crimes, corruption, and terrorism. More than 200 countries are committed to following the organization’s recommendations.

2. Association of Certified Financial Crime Specialists (CFCS)

This organization offers various solutions focused on training, membership, and certifications around financial crimes. It provides certification that validates skills across the entire financial crime spectrum and is considered a gold standard for compliance professionals in more than 80 countries. People can get trained in various finance and compliance allied subjects such as AML and crypto compliance and educate themselves on other financial crime risks. The CFCS community is significant, and members can interact, update themselves with news and accelerate their career growth by accessing the best career opportunities in the network.

3. Anti-Money Laundering and Financial Crime (AMLFC) Institute

The institute AMLFC collaborates with universities and professional organizations to combat financial crimes. The institute offers certifications for AML, countering the financing of terrorism, cybersecurity, Foreign Corrupt Practices Act (FCPA), fintech, and allied regulatory compliances. It also sponsors research to improve AML practices and strengthen AML compliance frameworks.

4. Transparency International

Transparency International works towards unraveling the widespread corruption internationally while focusing on three main activities – advocacy, research, and campaigning. The organization hosts a Global Anti-Corruption Consortium and is involved in various activities such as funding investigative journalism and analysis of financial crime.

5. International Money Laundering Information Network (IMoLIN)

The International Money Laundering Information Network (IMoLIN) is an internet-based network affiliated with United Nations Office on Drugs and Crimes (UNODC). IMoLIN provides eLearning resources, training courses, and access to the case-law database. It helps governments, organizations, and individuals fight the issue of black money, money laundering, and the financing of terrorism.

6. Stolen Asset Recovery Initiative (StAR)

UNODC and the World Bank fund the Stolen Asset Recovery Initiative (StAR). It is a perfect example of an international initiative and effort to fight corrupt practices. The organization plays a crucial role in recovering the assets of the victims of fraud and other financial crimes conducted by corrupt officials. The knowledge and resources by StAR guide the concerned authorities in recovering stolen or lost assets. It collaborates with developing nations’ leaders to identify and prevent money laundering practices.

7. Association of Certified Anti-Money Laundering Specialists (ACAMS)

The organization is one of the largest global organizations fighting financial crimes. Apart from providing certifications, the organization hosts conferences dedicated to AML compliances and regulatory frameworks. People working in the AML compliance field can enhance their knowledge and skills by becoming Certified Anti-Money Laundering Specialists (ACAMS), improving their career prospects and contributing to reducing financial crimes and their impact.

8. Organization for Economic Cooperation and Development (OECD)

The core power to prevent financial crimes rests with the government, and the OECD utilizes the ability of international government cooperation to fight financial crime. The organizations play a crucial role in shaping the policies that promote prosperity and prevent financial abuse.

9. International Consortium of Investigative Journalists (ICIJ)

The ICIJ is a renowned non-profit news organization with a USA-based newsroom and a global network of investigative journalists. It is known for exposing the widespread international network of financial crime, which triggers excellent awareness on the subject and attracts worldwide attention. It collaborates with popular mainstream news organizations and is credited with unearthing the most sophisticated crimes in the history of financial crimes, such as the Panama Papers.

10. Association of Certified Fraud Examiners (ACFE)

The Association of Certified Fraud Examiners is a global organization fighting financial fraud. It provides test preparation material and certification for becoming Certified Fraud Examiners (CFEs). The certificate states that participants have the skills to identify and prevent financial fraud. The members can access a large pool of online resources, including courses, statistics, and case studies. They can connect with other members who can hugely benefit from the annual fraud conference hosted by the ACFE Global Fraud Conference.

Final words

The global fight against financial crimes and money laundering is endless as criminals adopt innovative ways to commit financial crimes. Many criminal networks are spread worldwide, and they keep trying to launder money and abuse the domestic and international economic systems. So, the organizations that work with determination to fight money laundering always have to work harder and be alerted to detect and deter criminals and prevent them from being successful in committing financial crimes.

The nature of financial crimes is becoming varied, so organizations constantly need to be on their toes to identify financial crime and fight against it. The role of the organizations of those mentioned above and many other organizations in combatting money laundering and financial crimes is highly appreciable. The best way to prevent such financial crimes is to be aware of the AML rules and regulations and comply with them. Organizations should conduct regular AML training sessions for their employees, update them on the latest AML rules, and empower them with tools to identify suspicious financial activities.

Relying on AML software that considers the unique business requirements should be the way to fight financial crimes. Nowadays, the software is embedded with several advanced features that help detect any suspicious activity early and prevent financial crimes from taking place in the first place.

An AML consultant can assist you in implementing the right AML software and getting relevant AML training. AML UAE is a leading AML consultant that offers an array of AML compliance services. You can get professional assistance setting up an in-house AML department and get the Annual AML/CFT Risk Assessment Report and AML/CFT health check. You can also rely on AML UAE for AML/CFT Policy, Controls, Procedures Documentation, AML Training, and AML software selection.

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

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A Quick Guide to AML Compliance

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Published On: 08/26/2022

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Last Reviewed On: 08/20/2026 | Last Updated On: 08/20/2026

A Quick Guide to AML Compliance

Money Laundering is a global concern, and governments are trying to combat financial crimes. Criminals try to generate proceeds by carrying out illegal activities, concealing the origin of the illicit money, and transferring the same into the legit financial system.

Criminals have become innovative and are using new ways to launder money. The digital space is evolving fast, and criminals are using it to launder their illicit money and fund criminals and terrorist activities. The global and local AML laws and regulations lay down the provisions that financial institutions and businesses should adopt to ensure their business is AML compliant and follows the best AML compliance practices. Adherence to the AML laws helps prevent money laundering activities or minimizes the exposure and the impact it could have on the business.

The global business landscape is changing, and businesses must proactively combat compliance challenges with AML laws. Moreover, the pandemic has forced enterprises to rethink their AML compliance strategy and keep pace with the evolving threats and strict AML regulatory compliance. There are various processes involved in AML compliance laws, such as Know Your Customer (also known as ‘KYC’), sanction screening, identification of UBOs, and many more. In addition to managing the business and keeping the company profitable in a competitive marketplace, the firm must stay AML compliant and avoid the risk of being exposed to financial crimes.

Financial institutions and designated non-financial entities are responsible for preventing money laundering by deterring criminals from misusing the legal system to infuse illicit money into the mainstream economy. With a robust AML compliance framework and assistance from an AML consultant, these companies can effectively comply with the AML rules and regulations.

We have highlighted vital compliance elements under the AML/CFT compliance program.

KYC

KYC details help businesses verify the authenticity of customers’ profiles and detect any suspicious transactions designed for carrying out money laundering activities. It enables the companies to understand their customer base and decide the risk exposure associated with each customer or client. These verification task makes the identification of suspicious transaction easy, guiding businesses as to carry out a transaction with a customer or not.

When a legal person has to carry out a transaction, it has to submit company information such as registration number, name, address, management composition, etc. While in the case of a customer being a natural person, complete data such as name, date of birth, and government issues unique identification number must be sought and verified.

Screening

Businesses should have a strict program to screen customers against the sanctions list (local and international). Further, screening should also be carried out to understand the customer’s status as a politically exposed person or previous history of any involvement in financial crimes. Basis the screening outcome, the decision is made to report the person, freeze the funds, or continue the business transaction.

Risk profiling and Enhanced Customer Due Diligence

Businesses use Customer Due Diligence (‘CDD’), which offers an in-depth analysis of the customers’ data and verifies whether the documents submitted are genuine. Basis this analysis, the customer’s risk categorization is done, and additional measures are carried out if needed. For example, in the case of high-risk customers, enhanced due diligence is to be performed, where specific details regarding the source of funds are obtained.

Continuous monitoring

It is essential to continuously monitor the customers’ profiles and keep the same updated with the latest information. Basis the monitoring of the profiles and updates therein, the risk categorization of the customer should be changed and kept aligned with the latest profile. Further, businesses should constantly verify the transactions to keep a close eye on the customers’ financial patterns and transactions suggesting money laundering involvement. Here, it is recommended to rely on robust AML software that can automatically schedule a periodic verification of the customer’s profile.

Businesses need to monitor the volume and value of transactions involving a series of transactions or a large sum of money. In collation of the data and watching the same, an advanced technology, such as Blockchain, can be used to ensure timely and accurate AML compliance. Such technology will help businesses detect financial crimes instantly and eliminate the chances of criminals laundering money.

AML Software

Organizations with a progressive mindset and a proactive approach will create an effective AML compliance program in the digital era. With the help of comprehensive AML compliance services and the AML software selection, they can automate the AML process and reduce the dependency on manual efforts, which reduces the risk of human errors. The AML software is highly effective and cost-efficient in preventing money laundering. It would be the best method to stay vigilant all the time and avoid the risk of non-compliance.

AML Training

With thorough AML training, organizations can empower employees with updated knowledge and skills to detect suspicious transactions. It would ensure compliance with AML regulations and minimize the organization’s vulnerability to the risk of money laundering.

Getting the AML/ CFT Policy, Controls, and procedures documentation complete and creating an in-house AML compliance Set up are some steps towards becoming AML compliant.

Conclusion

With the help of AML consultancy providers, businesses can prevent financial crimes and fight the menace of money laundering and terrorism financing. You can approach an expert firm like AML UAE, which can help select the right AML software and assist in documenting AML/ CFT policies.

AML UAE can also help with AML training services and annual risk assessment reports. To create a full-fledged in-house AML compliance department setup, professionals will assist you in implementing the AML department. To avoid the risk of non-compliance, businesses can also get AML/ CFT health check-up services. Grab detailed information on getting the right and robust AML compliance framework to avoid the risk of non-compliance

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

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What are the responsibilities of the FIU- Financial Intelligence Unit under the UAE Anti-Money Laundering Law?

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Published On: 08/23/2022

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Last Reviewed On: 08/20/2026 | Last Updated On: 08/20/2026

What are the responsibilities of the FIU- Financial Intelligence Unit under the UAE Anti-Money Laundering Law?

The UAE government has made many efforts to combat money laundering and financing of terrorism. The government has created a legislative and regulatory AML/ CFT environment in which institutional framework plays a vital role in preventing the money laundering and financing of terrorism. The AML/ CFT laws help protect the economy from misuse and identify and deter criminals from laundering illicit money into the legal system and prevent them from using it for criminal and terrorist funding. The UAE‘s legal and statutory framework includes a vital organisation – the Financial Intelligence Unit (FIU). The organisation has been developed to ensure that entities follow the correct AML compliance procedure and sync with the AML UAE laws.

When and how did the FIU come into existence under the UAE Anti Money Laundering Law?

The Central Bank of UAE (CBUAE) established a specific unit in 1998 dedicated to investigating financial crimes, frauds, and suspicious transactions. It acted as a unique institution that prevented money laundering and terrorist financing activities. Then in 2002, this organisation was renamed Anti-Money Laundering and Suspicious Cases Unit (AMLSCU). After the UAE government introduced the Federal Decree by Law No. (10) of 2025 on AML/CFT, the unit was renamed the Financial Intelligence Unit. Since then, the organisation has been known as the FIU. 

As per the UAE Anti-Money Laundering Law, the Financial Intelligence Unit is headquartered in the State’s capital. FIUs operate independently and perform their duties as per the AML law. As per the rules, they can open branches within Central Bank branches in the Emirates of the State. The CBUAE will provide technical assistance, workforce, and human resources so that the FIU functions appropriately and fulfils the requirements as required by the UAE’s anti-money laundering law. 

Functions of Financial Intelligence Unit under the UAE AML/CFT Regulations:

The FIU was created to strengthen the UAE Government‘s anti-money laundering regulation. It acts as the central institution which receives the STRs and the related information on the fraudulent accounts and transactions. 

Powers of the FIU under the UAE AML Laws are discussed below: 

It can establish Financial Unit Departments and internal regulations on procedures for approval by the Central Bank’s Board of Directors.  
Create a database that can store any information and secure it by establishing the rules to ensthe goAML portal speeds up the processure the security of the data.
Provide training on AML and train the employees. Provide training material to provide the updated knowledge and skills to help perform duties to be AML compliant. It also includes providing training to other authorities inside or outside the State.
To research domestic and international crimes and follow up to arrive at conclusions. 
Prepare reports on how it has prevented crimes and provide analysis on STRs- Suspicious Transaction Reports

The functions of the FIU in the Suspicious Transaction Report under the UAE Anti-Money Laundering Law are mentioned below:  

The FIU receives Suspicious Transaction Reports on financial crimes on approved templates from entities. 
The unit analyses the STRs and creates a database. 
It might ask the entities to submit any additional information that might be considered necessary to carry out their duties for STRs. 
It provides results on the information obtained in the reports to improve the measures employed for combatting money laundering and financial terrorism. For this, it cooperates with supervisory authorities by sharing the analysis results. It helps to measure the quality of the reports submitted and ensure that the entities comply with the AML rules and regulations efficiently. 
The FIU shares the data with the Law Enforcement Authorities when there seems to be a high probability that a financial crime has been committed. 
Share information obtained from foreign financial authorities to the It judicial authority as required. 
The FIU analyses the STRs and evaluates money laundering and terrorism financing activities.

Working of the Financial Intelligence Unit under the UAE AML

The Financial Intelligence Unit under the UAE Anti-Money Laundering Law analyses available reports and information from the entity in two ways as follows:

The FIU, under the Anti-Money Laundering law, has to study the available reports from the entity in two ways. It adopts the operational analysis method- using the available information to detect fraudulent transactions, persons, and criminal activities. The second method is strategic analysis. The FIU uses the information that includes the data provided by the concerned authorities to detect fraudulent transactions and identify criminal activities. 

It is noteworthy that the FIU uses the goAML portal to receive, analyse and forward the STRs efficiently; the data is enormous, so using an integrated system such as the goAML portal speeds up the process. The UNODC – United Nations Office on Drugs and Crime has developed the goAML system to prevent money laundering and financial terrorism. 

Duties of the FIU under the UAE International Legislative Framework

The FIU must perform its duties on the international level by exchanging information. It has to report the results obtained on Suspicious Transaction reports with its fellow AML compliance unit in other countries. 

Conclusion

Financial institutions need to follow the AML/ CFT laws. The Financial Intelligence Unit plays a significant role in ensuring compliance with various functions, such as collaboration with local, regional, and international stakeholders. The FIU works in tandem with them and ensures that they collectively achieve the goal of preventing money laundering and the funding of various crimes and terrorist activities with illicit funds. If you need assistance with AML compliance and ensure that your business is AML compliant with the UAE’s AML/ CFT rules and regulations, you might consider AML consultants.

AML UAE has a dedicated team of professionals, including compliance experts, policymakers, economists, data scientists, and many more professionals whose knowledge and experience will assist you in becoming AML compliant. Get the services of the top AML consultants in the UAE and follow the UAE AML Laws and regulations without fail.

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

Reach Out to Pathik

Targeted Financial Sanctions (TFS): Legal Requirements in UAE

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Published On: 08/18/2022

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Last Reviewed On: 08/25/2026 | Last Updated On: 08/25/2026

Targeted Financial Sanctions (TFS): Legal Requirements in UAE

The Cabinet Resolution No. 74 of 2020 pertains to the UAE list of Terrorists and the implementation of the UN Security Council decisions to combat money laundering and terrorism financing. The resolution requires all persons- natural or legal, financial institutions, and Designated Non-Financial Business Professionals to fulfil Targeted Financial Sanctions (TFS) obligations. In this blog, we’ll discuss the responsibilities which are a part of the AML compliance process.

Obligations to implement Targeted Financial Sanction to Combat Money Laundering and Terrorism Financing in the UAE

Registration: 

To get timely and regular updates from the UN security council, the sanctions committee, or the Local Terrorist List of the UAE regarding the new listing, re-listing, or de-listing decisions, all the persons in the UAE must register on the website of the Executive Office.

Screening:

It is a necessary process to implement the Targeted Financial Sanctions to combat Money Laundering and Terrorism Financing. All-natural persons and entities in the UAE must screen their transactions and the databases on a regular basis to keep a vigilant eye on any unusual activity and screen their databases and transactions regularly to identify any name matching on the sanction list.

All the persons-natural or legal must follow the Sanction screening process to implement the Targeted Financial Sanctions process before the onboarding process and carrying out a transaction. It is necessary to follow the screening process daily and keep themselves posted on the updates in the sanction lists.

The updates are available on the Executive office website and the official website of the United Nations.

They need to regularly screen the following: 

Existing customers’ databases / potential customers.
Parties to any business or transaction.
Database of the names of potential customers.
UBOs – Ultimate Beneficial Owner.
Names of persons and entities with which the customers/ UBOs are directly or indirectly related. 
Screening each customer before establishing a business relationship or carrying out any transaction. 
Directors/ Agents who act on behalf of the customers and those with a power of attorney.

Freezing of Accounts

All persons within the UAE have to resort to the stern measure of freezing of accounts of any person found on the sanction list – the United Nations (UN) list or the UAE Terrorist List. They have to act immediately and with the prior notice within 24 hours, or as the case may be.

Duties of the AML Compliance Officer

The AML compliance officer has to notify the Supervising Authority following the UAE AML/ CFT law in the following cases-

When funds, action, or attempted attempts are identified as required by the relevant UNSCRs or UAE Local Terrorist List
When a match is found of persons or entities on the sanction lists, the AML compliance officer must provide all the details required by the relevant UNSCRs and Local Lists to the Supervisory Authority.
When the AML compliance officer finds that previous/occasional customers are listed on the sanction lists of the local list
If a suspicion arises that an existing or a previous customer is listed or is directly or indirectly related to the listed person
No action is taken because of false positives, and there’s the inability to dismiss or ignore them based on the available information.
The AML compliance officer should provide all the information of unfrozen accounts- the status and value of the money. They also need to inform about the measures adopted for the unfrozen funds and any other information relevant to such decisions.
Financial institutions and DNFBPs have to report the information regarding the freezing of the accounts or an attempted action to do the same within five days to the FIU.
Reporting Entities have to submit a Confirmed Name Match Report (CNMR) and Partial Name Match Report (PNMR), as the case may be, within 5 calender days via goAML Portal.

Internal Policy, controls or procedures by entities in the UAE to Targeted Financial Sanctions

Internal controls and procedures are an integral part of the compliance process as per resolution No. 74 of 2020. It is mandatory to have proper policies and procedures to prevent the employees from sharing the information of freezing the accounts with the customer or any third party directly or indirectly. When they implement the policy and procedures to mitigate the risks arising from such actions effectively, they need to define the processes for compliance. 

The obligation to Cooperation 

People in the UAE must cooperate with the Executive Office or the Supervisory Authority, as per the Related United Nations Security Council Resolution or decisions of the UAE Cabinet regarding the issuance of the Local Terrorist List. They must freeze or lift the freezing of funds as the case may be without any delay. It is required so that the information submitted is verified and authenticated. 

Penalties as per the UAE AML Law for Non-Compliance

Failure to follow the obligations mentioned above by any person- natural or legal will have to pay fines of not less than AED 50,000 (Fifty Thousand Dirhams) and not more than AED 5,000,000 (Five Million Dirhams) and can also be subjected to imprisonment.

Expert Opinion

The fines are huge, and imprisonment is also likely to be faced due to non-compliance. It would be best to hire an AML consultant such as AML UAE. It is a leading consultant serving a lot of businesses in the UAE. It offers a wide range of AML Compliance services, such as the AML/ CFT Policy, Controls, and Procedures Documentation, which helps comply with the AML rules and regulations and fulfil the obligation as per the AML laws.

AML UAE assists in risk identification, identifying the gaps that need to be filled to be AML compliant, and finally creating a robust AML/ CFT framework. Contact the expert and rest all your worries regarding AML compliance. 

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

Reach Out to Pathik

Suspicious Transaction Reports (STRs) filing with goAML portal of FIU UAE

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Published On: 08/11/2022

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Last Reviewed On: 08/25/2026 | Last Updated On: 08/25/2026

Suspicious Transaction Reports (STRs) filing with goAML portal of FIU UAE

The UAE government has implemented several laws to combat money laundering and prevent financing of terrorism. As per the UAE Anti-money laundering law, Financial institutions and Designated Non-Financial Business Professionals known as DNFBPs must identify and file suspicious transaction reports (STRs) with goAML Portal of FIU UAE.

As per the Law, DNFBPs are categorised as firms involved in one or more of the following activities- the Real Estate agent, Dealer of precious metals and stones, Company Service Providers, Auditors and accountants, and Law firms. They have to report transactions that they deem suspicious as they have reasonable grounds to suspect that the transactions might be related to money laundering or terrorism financing.

What are Suspicious Transactions under the UAE AML?

The UAE Anti-Money Laundering Law has described Suspicious Transactions as those transactions related to money. The entities have reasonable grounds to suspect that the money has been obtained from criminal proceeds – from crimes associated with the financing of terrorism or criminal organisations, whether they have been committed or attempted.

Funds in the description mentioned above refer to tangible and intangible assets, movable and immovable. It includes national currency, foreign currencies, documents, or notes that provide proof of ownership of the assets or associated rights. The rights can be in any form- electronic or digital forms or any interests, profits, or income stemming or earned from these assets.

When do the entities report the Suspicious Transactions under the UAE AML?

If the DNFNPs suspect the transaction or attempted transaction involves criminal proceeds, and they have reasonable grounds to believe that the transactions are suspicious, they must report the transactions to the FIU. The suspicion might arise due to the unusual nature of the transactions or doubt about the person or group involved in the transaction.  

How to detect Suspicious Transactions?

Today AML software is being increasingly relied upon to generate alerts for suspicious transactions that immediately identify doubtful transactions/accounts. The financial institutions, DNFBPs, and other regulated entities need to rely on alerts or red flags that categorise a transaction as a suspicious transaction. They let the business know about the legitimacy of the accounts and the money involved in the transaction.

Entities need to choose the best AML software based on their unique business requirements, which will help them notice the red flags and take immediate steps to combat money laundering and terrorism financing activities. 

Who Receives the Suspicious Transaction Reports (STRs) under the UAE AML?

The Financial Intelligence Unit receives the Suspicious Transaction Reports from the entities who have reasonable grounds to believe that a transaction made or attempted is suspicious- might be criminal proceeds. The entities must report such transactions to the FIU on the goAML portal. The FIU analyses the reports received from different entities. 

Confidentiality is required on Suspicious Transaction Reports under the UAE AML

Confidentiality is a critical factor while reporting suspicious transactions to the FIU. Entities need to maintain confidentiality for the information shared. No unauthorised person, including the customer of whom the transaction is being reported, should access the information and know that the information has been shared with the Financial Intelligence Unit. 

Duties of FIU- Financial Intelligence Unit under the UAE AML

The (UNODC)-United National Office on Drugs and Crime has developed the goAML portal to prevent money laundering and terrorism financing. The FIU is entrusted with the responsibility of analysing suspicious transactions and money laundering, terrorism financing, and keeping a tab on organisations involved in illegal activities. It analyses the STRs received from any entity on the goAML portal. The suspicious transaction reports must be submitted to the FIU on the goAML platform, which efficiently receives, analyzes, and disseminates the STRs. 

It also partners with DNFBPs by sharing information and creating collaborative platforms to deal with money laundering and terrorism financing. If the entities fail to register on the goAML portal, it will be considered that the entity has violated Article 20(2) as it has not followed the mandatory procedure to report the suspicious transactions.

Penalties for non-compliance with the Law on Suspicious Transaction Reports

The Ministry of Economy (MOE) may impose administrative penalties on the DNFBPs for non-compliance with the AML. Non-reporting of suspicious transactions is a criminal offense, and the offenders are subject to heavy fines and imprisonment, including DNFBPs and employees. Failure to report a suspicious transaction will attract a penalty of a minimum of AED 100,000 and not exceeding AED 1,000,000 and/or imprisonment. The obligation to report suspicious transactions arises under Article 18 of Federal Decree-Law No. 10 of 2025 and Articles 17 to 19 of Cabinet Resolution No. 134 of 2025.

What are the exceptions to the Law on the filing of Suspicious Transaction Reports?

The government has announced some exceptions to the Law on Suspicious transactions reports considering the professional secrecy requirements for certain professionals such as notary publics, lawyers, independent legal auditors who have obtained the information while providing consulting services or defending the client in a legal proceeding. They are exempted from the Law on STRs and are not required to report suspicious transactions. 

If the information is shared in good faith, the DNFBPs board members, employees, and authorised representatives are not liable for any administrative, civil or criminal liability for reporting to the FIU- Financial Intelligence Unit.

I have filed an STR/SAR with the CBUAE FIU goAML portal. Can I provide additional information pertaining to the transaction that has already been reported?

The Compliance Officer/MLRO can submit the additional information in relation to an STR filed with the CBUAE FIU goAML portal. He needs to submit an Additional Information File (AIF) or Additional Information File with Transactions (AIFT) if additional transactions need to be reported.

The compliance officer must provide a web reference number of the original SAR/STR in the FIU reference field.

Expert AML Consultancy services 

If you need expert advice on AML compliance and Suspicious Transactions Reports, you can rely on AML UAE – a leading AML consultant in the UAE. We offer end-to-end AML compliance services such as AML CFT policy controls and procedures documentation, AML software selection, in-house AML compliance department set up, and many more. For the complete range of services, feel free to visit us.

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

Reach Out to Pathik

The Challenges of The Sanction Screening Process

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Published On: 08/10/2022

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Last Reviewed On: 08/25/2026 | Last Updated On: 08/25/2026

The Challenges of The Sanction Screening Process

Sanction screening is an integral part of AML/CFT compliance processes. With the changing political-socio-economic scenarios worldwide, governments are emphasizing sanctions. With increased awareness and alertness about the sanctions, businesses across the globe are keen to know about the sanctions and implement the robust sanction screening process. Business organizations understand the sanctions and their implications on the company and realize the benefits of sanction screening to protect their organization from being exposed to financial crimes and safeguard its reputation from damage.

What is Sanction Screening?

A company must know who it is dealing with and whether its customers or business associates are law-abiding citizens, have a legitimate business, and carry out their business activities lawfully.

Thus, Sanction screening is a process whereby businesses screen their customers, suppliers, or any other business partner against the names of individuals/entities/organizations appearing on the sanction list. Individuals/groups who have violated the trade norms or are involved in financial crimes such as money laundering, financing of terrorism, the proliferation of financing of weapons for mass destruction, etc., are mentioned in such sanctions list. Such enlisted people are barred from trading with certain countries/groups. They are not allowed to do business because of violation of the trade agreements, and their involvement in grave offenses hampers the integrity and peace of the entire world.

The mandatory obligation for screening against the UAE Local Terrorist List and the UN Security Council Consolidated List and freezing without delay is required under Article 19(1)(e) of Federal Decree-Law No. 10 of 2025, implemented through Cabinet Resolution No. 74 of 2020 and the EOCN Guidance on Targeted Financial Sanctions (March 2026).

AML regulations have laid down the detailed processes to be followed to mitigate the risk of money laundering and terrorism financing. As part of the Know Your Customer or Know Your Business process, the companies must know and confirm the counterparty’s identity. Sanction screening forms part of AML/CFT compliance through the KYC process.

Under sanctions screening, the customers/suppliers’ database is screened against the loal and international sanction lists. With sanction screening exercises, businesses can know about their business partner’s records related to financial crime or illegal activities and check if any country or group has boycotted them. With screening, they can learn with whom to establish a business relationship and continue to maintain it without worrying about compliance issues. Such a regular screening process helps them protect their organization from reputational damage, penalties, financial losses, and being vulnerable to financial crimes.

Are sanctions screening mandatory?

Yes, sanction screening is a mandatory process required by the governments as their effort toward curbing the evil of financial crimes and maintaining the economy’s stability. Different sanction lists are available in other countries. The HM sanction Treasury lists is a UK consolidated list of economic sanctions that pertains to individuals and legal entities operating within the UK’s territory.

Similarly, the OFAC sanction list applies to all nationals and entities that trade in the US and have a parent/ subsidiary or an affiliate company in the US. Any entity that uses US goods or components or works through a local agent operating in the US fall under the ambit of the OFAC sanction list. The EU Consolidated sanctions list applies to all EU citizens, irrespective of their location and entities established in the member state. Then, there is a sanction list issued by the United Nations Security Council, which is mandatorily applicable to all the UN member nations.

The “Financial Actions Task Force (FATF)” has also recommended the sanction screening process be implemented to adopt a risk-based approach in the AML compliance process.

Considering the sanction screening as a need of an hour, the government has imposed enormous penalties for non-compliance in implementing the financial sanctions. Sanction screening helps businesses identify customers with whom they can do business without legal repercussions. Violations of the sanction screening guidelines are a grave issue and a severe threat to the country and the world economy. Foreign relations are jeopardized, and national security is compromised if the sanction screening rules are not followed. Therefore, the government has implemented enormous fines for non-compliance with the sanction screening rules. Offenders can also face imprisonment for not complying with the sanction rules and regulations.

So, to avoid hefty fines and reputational damage, companies must comply with sanction screening and ensure adherence to the AML compliance process.

The challenges of sanction screening

The sanction screening process is full of challenges, and authorities must overcome them proactively.

1. Changing Sanction Rules

The sanction rules are ever-changing, so keeping pace with the updated guidelines is necessary. There might be additions of the sanctioned entities – individuals, particular businesses, or countries and some de-listing depending on the circumstances. Sanctions are dependent on the changing socio-economic-political events worldwide, so it’s vital to sync the sanction rules with such global updates. Further, the actions to be taken by the business entity also changes, wherein some may require freezing of fund while some call for reporting to the authorities.

A recent example is the Russia-Ukraine war which has prompted the banking sector to revise the guidelines on the sanctions. Thus, everyone has to stay updated with such amendments and updates to effectively comply with sanctions procedures.

2. Lack of Data

Sanction screening can be effectively implemented only when relevant data is available. It is essential to have quick and easy access to comprehensive information on sanction lists. Banks and financial institutions or any designated entities cannot afford to miss out on any update in the sanction lists. Therefore, they need access to real-time changes in the sanction screening guidelines.

Nowadays, various “AML softwares” offer real-time alerts to notify the changes in the already screened person or entities. Such screening software updates the database daily, with timely addition or deleting of the names of entities/individuals from the sanction lists. With continuous monitoring of the sanctions -local and international lists- organizations can keep their business AML compliant and free from financial crime risks.

3. Updated lists

Transactions are to be monitored regularly, whereby sanction screening is performed to check whether any person not listed on sanction continues the same status or is now sanctioned. Often organizations fail to comply with the sanction screening process due to the lack of updated lists and continue with the previous screening outcome. Thus, lack of access to the updated sanction lists often causes a delay in implementing the new changes, and business falls short of being fully compliant with the new rules. It may also end in transacting with a sanctioned person.

Rely on Experts for Sanction Screening Compliance

As sanction screening is mandatory, it is crucial to follow the proper process. More importantly, it is vital to take timely action to prevent businesses from being exposed to financial crimes. It would be best to rely on expert assistance for sanction screening compliance.

AML UAE has been providing AML compliance consulting services for several years. We have served many reputed businesses in the country with their sanction screening compliance process.

Our expert team comprises AML specialists and business consultants with in-depth knowledge of the sanction screening procedure. They keep themselves abreast of all the latest developments in the global sanction screening guidelines and therefore are the best choice to keep your business in sync with them.

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

Reach Out to Pathik

What are Economic Sanctions?

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Published On: 07/21/2022

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Last Reviewed On: 08/25/2026 | Last Updated On: 08/25/2026

What are Economic Sanctions?

Economic sanctions are a foreign policy tool that countries use to prohibit customary trade and financial relations with another country, group of nations, or individuals. In the UAE, this framework includes targeted financial sanctions, requiring regulated entities to screen customers and transactions against the UAE Local Terrorist List and the United Nations Security Council Consolidated List and to freeze funds or assets without delay where a match is identified. These obligations arise under Article 19(1)(e) of Federal Decree-Law No. 10 of 2025, implemented through Cabinet Resolution No. 74 of 2020 and the EOCN Guidance on Targeted Financial Sanctions (March 2026). Sanctions are imposed to coerce, deter or punish the nations that threaten their interest or violate international norms. The imposed trade barriers may be comprehensive and affect the entire country or targeted to block economic trade with particular businesses, groups, or individuals. The customary trade is withdrawn to protect the foreign and security policy.

What is a sanction? 

A sanction is defined as a penalty that one country imposes on another country or a foreign country, groups of governments, or individuals. The sanctions are commercial and financial penalties are applied by one or more countries on targeted countries, groups of nations, or individuals barring them from international trade. It is a weapon used to exert economic pressures to coerce them to comply with global trade and practices regulations. 

Sanctions Forms

Sanctions can be defined based on the number of countries issuing them. If a single government has imposed the embargo, it is a unilateral sanction. If a group of nations has imposed the sanction, it is a multilateral sanction. The former has much more severe consequences if the sanctions imposing country is more powerful, so the sanction will be highly effective and yield the desired results. The latter has less severe consequences as they implement multilateral sanctions, which do not hold one single country solely responsible for the sanction’s results.

Different Types of Sanctions

Export sanctions are imposed to prevent the entry of products into a country. The export sanctions will change consumer behaviour, and customers will opt for substitute products when the products are not available. Similarly, import sanctions put restrictions on the goods to leave the country. 

How Economic Sanctions Work?

Economic sanctions prohibit ordinary trade and financial transactions regarding foreign- and security policy objectives. The sanctions might come with a blanket approach that prohibits the nation on the whole, or sanctions may be narrow, restricting trade between and among specific countries, groups of governments, or individuals. Sanctions are implemented in the form of travel bans, arms embargoes, trade restrictions, asset freezes, etc. After 9/ 11, sanctions have become more intelligent, which prevents innocent citizens from being at the receiving end of the boycott.

When are sanctions implemented?

National governments and international organizations impose economic sanctions to coerce, discourage or impose fines or even shame businesses that break the international forms of behaviour or risk their interests. But sanctions have been considered a lower-risk alternative to diplomacy. It is a foreign policy tool used to successfully achieve several objectives, such as counter-terrorism and implementing anti-money laundering laws. It helps in promoting democracy and retaining human rights and resolving conflicts. 

What is the effect of sanctions?

The country witnesses an immediate impact of import sanctions as the target country cannot export goods, and the sales go down. The country that has imposed sanctions will not purchase the goods, affecting the trade between the two countries. The target country will face hardships if it depends on exports to a large extent to boost its economy. It can result in economic and political unrest.

The political and economic state of affairs will deteriorate and affect the public. The sanctions will strongly influence public opinion, and the citizens would want the ruling government to leave office. They would hold the ruling government responsible for the deteriorating state of affairs as they would bear the brunt of inflation and political unrest. Extremism may be followed, and the whole country can come on the verge of collapsing. The countries which issue the sanctions will witness a rise in the cost of the products.

The issuing nation will not be able to provide a wide variety of products to its citizens, and the consumers would have to meet their requirements with a limited range of products. The cost of operations for firms will increase as they need to source supply overseas. In the case of unilateral sanctions, the target country might depend on a third-party nation to lessen the embargo’s impact. It is crucial to follow the global AML regulations, considering the sanctions’ consequences.

Conclusion

Following the global AML rules and regulations is an absolute necessity. Rely on professionals to know the AML policies and correctly follow the AML procedures. AML UAE is a leading consultant in the UAE, serving thousands of satisfied clients and assisting them in diligently following the AML rules and regulations. Businesses in UAE can depend on this consultant for a wide range of services, such as AML/ CFT Policy, Controls, Procedures Documentation, AML Training, AML software selection, and Annual AML/ CFT Risk Assessment Report. Get AML/ CFT health check and avoid AML non-compliance. 

Our timely and accurate AML consulting services

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

Reach Out to Pathik

How do you do a Sanction Screening?

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Published On: 07/14/2022

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Last Reviewed On: 08/26/2026 | Last Updated On: 08/26/2026

How do you do a Sanction Screening?

Customer Screening is a critical element in the AML compliance. According to the Cabinet Resolution, no 74 of 2020, financial institutions and Designated Non-Financial Businesses & Professions (DNFBPs) must conduct daily screening of their customers and match the names on the sanction lists- Local Terrorist List and the UNSC list. Companies should make themselves aware of the regular updates in the sanction lists and prevent the financing of terrorism.

The Cabinet Resolution, no 74 of 2020, applies to the Targeted Financial Sanctions (TFS). It refers to sanctions which are financial prohibitions- freezing funds or assets and preventing the customers from using them directly or indirectly.

There are guidelines provided that businesses can refer to while screening their customers, making the process highly efficient and gaining accurate results. Companies can quickly examine whether their customers are on the UN List or Local Terrorist List.

Guidelines for Sanctions Screening

Primary Requirement for TFS Screening 

As per the TFS guidelines, organisations obligated to conduct the screening must continuously monitor their customer databases to identify any possible match with names on the sanction list issued by the UN or in the UAE Local Terrorist List.

Companies under obligation include financial institutions and DNFBPs like accountants, auditors, lawyers and real estate agents. Other business persons include dealers of precious metals & precious stones. The trust & corporate service providers are also obliged to conduct the sanction screening.

When should the Initial Sanction Screening be conducted?

The companies have to conduct the initial screening before the customer onboarding process and/or carry out an occasional transaction. After that, they need to conduct screening daily. They need to update themselves on the changes in the sanctions list, which is regularly updated, so they need to check the website of the Executive Office or the UN website to go through the updated lists.

Which Databases should be checked for screening?

Companies under obligation should check different databases to conduct the TFS Screening:

Existing customer databases and names of parties to any transactions.
Potential customers.
UBOs.
Names of individuals or entities who are directly or indirectly related to them.
Customers before conducting any transactions or establishing a business relationship with any Person.
Individuals- Directors and/or agents acting on behalf of customers and persons authorised to act on behalf of the customers with a power of attorney.

Identifying a match to fulfil Targeted Financial Sanctions Requirements

Companies should conduct the screening process every day to determine any possible match to the names appearing on the Local Terrorist List or UN List. They can get the following information for screening purposes-

For Entities – information such as the Name or Names, Aliases, and Address of Registration and Address of branches.
For individuals, the screening information consists of the Date of birth, ID or passport information, and Last known address.

Potential Matches, Confirmed Matches & False Positives

During the screening process for the TFS, there might be a potential match to a name on the sanction list, a confirmed match, or a false positive. 

A potential match refers to a match between data in the Sanctions Lists with any name in the databases. However, it does not mean that the potential match is always subjected to Targeted Financial Sanctions.

A confirmed match is when a potential match has been confirmed to be the individual, group, or entity subject to TFS. Also, if there is suspicion that the potential match may match an individual, group, or entity subject to TFS, it is considered a confirmed match. The company has to immediately freeze the funds and share the information with the FIU via goAML Portal in such a case. The company must notify within five days from freezing the funds or attempts to do so.

If there is no matching result found in the sanctions list, then the company is free to conduct business as usual. Similarly, companies can enter into a business relationship with clients who were false positives.

AML Sanctions Screening Software

FIs and DNFBPS would be better off if they utilise AML Sanctions Screening Software. Such AML Software helps carry out screening, identifies PEPs and keeps the record of such screening. Further, it is updated regularly with the UAE local sanctions list and UNSC Sanctions list. It gets easy to comply with AML regulations as AML Software automatically screens the entire database of customers and suppliers on a daily basis.

Sanction Screening in UAE

Expert AML Compliance Assistance

It is mandatory to abide by the guidelines for the TFS. AML UAE is one of the top consultants in the UAE, with a team of AML compliance experts. We offer a wide range of services such as AML Training, AML/CFT Health check, AML software selection, AML/CFT Policy Controls, and Procedures Documentation. Other services include Annual AML/ CFT Risk Assessment Report and in-house AML/ CFT compliance department set up. Rely on high-quality consultancy services and get help complying with the detailed TFS requirements. Contact the expert to abide by the sanctions screening requirements and avoid penalties.

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

Reach Out to Pathik

Role of FATF: The Financial Action Task Force

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Published On: 07/07/2022

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Last Reviewed On: 08/26/2026 | Last Updated On: 08/26/2026

Role of FATF: The Financial Action Task Force

The global economy is rapidly growing by leaps and bounds, and so are the financial crimes. Money laundering is a worldwide concern as billions of dollars are laundered every year. The Financial Action Task Force (FATF), established in 1989, is an inter-governmental policy-making body that can be defined as the backbone of the fight against money laundering and terrorist financing.

The organisation makes policies – at the local and international levels to prevent money laundering and other financial crimes resulting from funding from illicit money.

The FATF has issued 40 recommendations to prevent money laundering and provided 9 special recommendations to prevent terrorist financing. Initially, the organisation was set up to combat money laundering, but recently, its scope has been widened to avoid funding weapons of mass destruction, corruption, and terrorist financing. A large number of developed countries are part of the FATF.

This global organisation prevents financial crime and laundering of money to prevent financial terrorism. The objective of the FATF is to provide guidelines and ensure effective implementation of the legal, regulatory, and operational measures for containing money laundering, terrorist financing, and other financial threats that plague the society, the economy, and the world at large.

The organisation monitors the member countries’ progress and evaluates how effective they have been in implementing the anti-money laundering rules and regulations. It also reviews the anti-money laundering and terrorist financing mechanisms, tools, and countermeasures. It promotes global adoption of the AML/ CFT guidelines to enable countries to fight money laundering and terrorist financing. It also includes measures to prevent the financing of proliferation.

The FATF recommendations act as guidelines for member countries which they should have in their criminal justice and regulatory systems. These are preventative measures that financial institutions and other regulated entities should adopt to fight money laundering and terrorist financing. In this way, they also safeguard their reputation and avoid non-compliance and penalties. By following the recommendations, financial institutions and businesses can make their customer onboarding process more transparent and detect and deter criminals from misusing their organisation and the financial system to launder money obtained from fraudulent means.

The FATF provides recommendations on setting up relevant and competent authorities with specific functions and defines their powers and mechanism to cooperate with countries to fight against money laundering and terrorist financing. 

On Feb. 16, 2012, the FATF issued revised recommendations. The notable changes are mentioned as follows: 

The FATF lays emphasis on adopting a risk-based approach to implement the Anti-money laundering and combatting of terrorism financing. It will help the countries to employ a proactive approach to mitigate the risks. It has been fully enhanced within the Standards. 
Get quick access to correct information on the beneficial ownership of the legal entities, and the arrangements for the same have been strengthened. 
The Tax offences for money laundering have been made predicate offences (a crime which is a component of a more significant crime).
The powers and responsibilities of the FIU and law enforcement have increased. The coverage of international cooperation has been broadened.  
The definition of PEP has been broadened. Now it includes PEPs- Politically Exposed Persons- domestic and international organisations. 
The scope for financial group (or consolidated) supervision has been enhanced. 
The transparency of wire transfers has been improved.
The FATF has added new standards for implementing targeted financial sanctions to prevent the accumulation of weapons of mass destruction.

Conclusion

 It is essential to follow the local AML rules and regulations and follow the recommendations provided by the FATF. Financial institutions need to be proactive in implementing the AML laws and protect their business from being misused by criminals. They can rely on professional AML consultants who offer a comprehensive range of AML compliance services.

AML UAE is one of the top AML consultants in UAE, serving thousands of businesses and helping them follow the AML laws and avoid non-compliance risks. Get a wide range of AML compliance services such as AML/CFT Policy, Controls and Procedures Documentation, AML Training, and AML/CFT health check. For further information on the full range of services, feel free to visit AML UAE.

Our timely and accurate AML consulting services

For your smooth journey towards your goals

Share via :

About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.

Reach Out to Pathik