Circular No. (3) of 2022 for countries listed in FATF grey list and black list
Circular No. (3) of 2022 for countries listed in FATF grey list and black list
Circular No. (3) of 2022 issued by the UAE Ministry of Economy requires DNFBPs to update the list of High-Risk Jurisdictions subject to a Call for Action and the list of Jurisdictions under Increased Monitoring.
Accordingly, real estate brokers and agents, dealers of precious metals and precious stones, auditing or accounting firms, corporate services providers, and legal consultancy companies are required to verify and review the lists and information issued by the FATF and the National Anti Money Laundering And Combatting Financing of Terrorism And Financing of Illegal Organizations Committee (as amended and current at that time) on a regular basis, and shall take such into account when establishing and implementing counter-measures and/or enhanced due diligence measures as appropriate and proportionate to the level of risks.
Further, DNFBPs shall apply due diligence measures in line with the degree of risks posed by the countries added/removed from those lists by FATF.
Requirements related to Jurisdictions Under Increased Monitoring (Grey List):
DNFBPs shall review the jurisdictions under increased monitoring (Grey List) and apply suitable risk-based compliance measures. Such measures may include carrying out Enhanced Due Diligence of the customers in line with the circumstances referred to at paragraph 20 to the interpretive note of FATF Recommendation 10 as well as Article (4) of the 2019 Cabinet Decision.
Requirements related to High-Risk Jurisdictions (Black List):
DNFBPs shall apply enhanced due diligence to all business relationships and transactions with the high-risk jurisdictions including individuals and corporates and those acting on their behalf. Further, DNFBPs shall
- Not establish any branches or representative offices within the jurisdictions on the black list
- Establish proper internal reporting mechanisms for monitoring transactions and activities pertaining to jurisdictions on the Black List, and submit suspicious transaction reporting to the FIU where relevant, using the existing template pertaining to jurisdictions on the Black List reports in GoAML (High-Risk Jurisdiction and High-Risk Jurisdiction Activity).
- Not to rely on third parties located in jurisdictions on the Black List to perform their due diligence procedures.
- Comply with the implementation of targeted financial sanctions requirements, in accordance with applicable UN Security Council Resolutions and CABINET DECISION NO. (74) of 2020.
All Designated Non-Financial Businesses and Professions (DNFBPs) are to re-evaluate the implementation of due diligence measures in consistency with the degree of risks, in respect/t of countries removed from those lists by FATF.
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