Confused about what the process of Customer Risk Assessment (CRA) and Enhanced Due Diligence (EDD) entail? Look no further!

Strengthen your business’s defences against Money Laundering (ML), Financing Terrorist (FT), and Proliferation Financing (PF) risks posed by prospective customers and existing low-risk customers whose risk rating may shift to high-risk due to any fluctuation in their customer profile by taking appropriate ML/FT and PF risk mitigation measures.

Through this Webinar, our Anti-Money Laundering expert Dipali Vora has explained the nitty-gritties of the Customer Risk Assessment (CRA) and Enhanced Due Diligence (EDD) requirements under the Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) laws in the UAE.

Watch this Webinar and gain insights into:

• The meaning and importance of the CRA as an essential element of the Customer Due Diligence (CDD) process.
• Carrying out and implementing the CRA exercise through Customer Risk Profiling and deciding on the corresponding measures to be taken
• Red flags to look out for while conducting CRA
• Best Practices for conducting CRA
• When and how to conduct Enhanced Due Diligence (EDD) on High-Risk customers

So, don’t let ML/FT and PF risks hold you back! Watch the webinar recording now and empower your business through effective AML/CFT compliance.

Want to explore the screening requirements in the UAE?

Want your business to stay safe in today’s challenging business environment and compliant with Anti-Money Laundering (AML), Counter Financing of Terrorism (CFT) regulations, and Targeted Financial Sanctions (TFS) Compliance?

Then, you should watch our recent webinar video on YouTube!

The webinar endeavoured to dive deep into the concepts such as:

• How to screen the customers?
• When to screen the customers?
• What is Targeted Financial Sanctions (TFS)?
• What are sanction screening requirements in UAE?
• How to manage the TFS risk?
• What is PEP (Politically Exposed Person) Screening?
• What is Adverse and Social Media Screening?

The webinar also addressed the critical role played by the screening process for carrying out Sanctions Screening, Adverse Media Checks, and PEPs (Politically Exposed Persons) Screening to safeguard against the ML/FT and PF risks.

Check out the recorded session of the webinar, in case you missed the live session or you simply want to revisit any concept that grabbed your interest, using the on YouTube link given below.

Identity verification is a crucial aspect of the Customer Due Diligence Process to ensure the authenticity of the identity presented. Identity Verification is the process of confirming the prospect’s claimed identity by cross-referencing the given information with official government-issued documents such as an Emirates ID in the UAE.

Various methods of identity verification:

• Document verification
• Biometric verification
• Credit Bureau-Based Authentication
• Database Identification Methods
• Knowledge-Based Authentication
• Online Verification
• Two-Factor Authentication (2FA)
• Device Verification

The regulated entities must identify the suspicions related to money laundering or terrorism financing and report the same to FIU. It is very important to determine when the report is to be filed on the goAML Portal.

A Suspicious Activity Report (SAR) is to be filed when the regulated entities have reasonable grounds to believe any activity or transaction of the customer is related to any financial crime or money laundering/terrorist activities.

It is very important to understand the source of funds and the source of wealth of a customer to bring transparency to the transactions, as businesses deal with high-risk customers regularly, posing an increased risk of financial crimes. It is important to determine the financial position of the customer to identify the origin of the customer’s funds and get information about the possible connection with financial crime or any other criminal activities.

When the means of funds and wealth, as disclosed by the customer, do not align with the customer’s declared wealth, it indicates suspicious activity. It helps you identify whether the transaction proposed is aligned with the customer’s source of funds and wealth.

Using the appropriate technology to support AML operations is becoming important as a result of evolving financial crime typologies and shifting AML requirements.  All regulated entities need to consider utilising the capabilities of cutting-edge technologies and solutions to improve the accuracy and efficiency of their AML compliance programmes.

The AML compliance obligations placed on the company must be comprehended and assessed by the regulated entities. The entity’s compliance tasks must take into account the relevant regulatory environment as well as the findings of the Enterprise-Wide Risk Assessment.

The senior management of a regulated entity must know the status of its AML compliance. Further, regulated entities are required by law to take a risk-based approach to counter ML/TF. It is the senior management that will decide if the ML/TF risks are acceptable, considering their risk appetite. It is imperative for the compliance officers to prepare periodic reports for the senior management to comply with regulatory requirements and ensure that the proper risk management practices are in place.

An overview of the changes made to the AML rules during the period must be included in this periodic report. Reference to how these modifications impact the business operations of regulated entities is also required.

Customer Due Diligence becomes inevitable at the time of entering a business relationship with a customer by the Financial Institutions, DNFBPs, and VASPs. It is a very crucial process and needs to be performed with caution and utmost efficiency.

This video explains three types of Customer Due Diligence measures:

• Simplified Due Diligence: When the risk posed by a particular customer is classified as low, then Simplified Due Diligence must be applied.
• Standard Due Diligence: When risk posed is classified as medium or when the simplified Due Diligence outcome is not satisfactory.
• Enhanced Due Diligence: When, after conducting a customer risk assessment, the customer is classified as high-risk, then Enhanced Due Diligence must be carried out.

Registering on the go-AML portal of the UAE FIU is the main prerequisite under the AML framework. It is imperative for the regulated entity to verify that the business facts and information accessible on the go-AML site are up to date.

Having an AML Compliance Officer capable of framing and implementing AML rules and procedures is the second critical component required to drive the AML program.

To determine the appropriate controls needed to reduce the detected risk and evaluate the possible exposure to financial crime risks, regulated entities must conduct an enterprise-wide risk assessment.

The Federal Decree by Law No. (10) of 2025 and related cabinet decisions and guidelines require DNFBPs and VASPs to adopt a risk-based approach and carry out Customer Due Diligence (CDD).

Know Your Customer (KYC) has been a crucial component of CDD requirements and we often get queries from DNFBPs and VASPs related to the legal requirements around it.

The webinar on “Decoding KYC Requirements: A Crucial Element of AML Compliance in the UAE” was conducted successfully on June 5, 2024, from 11 am to 12 pm (GST).

The webinar addressed the AML/CFT Regulatory Framework in the UAE, KYC meaning and its significance, KYC requirements for individuals and corporates, circumstances and timing for conducting KYC, common deficiency around KYC measures employed by entities, significance of KYC remediation in AML compliance, best practices for conducting KYC, UBO identification, restrictions on establishing business relationships under UAE AML regulations, and red flags associated with customers with respect to KYC.

Thanks for attending our webinar.

In case you missed it, here is a recording and presentation that recaps everything we covered.