Mastering STR Filing to Deter Financial Crimes for a DNFBP
Mastering STR Filing to Deter Financial Crimes for a DNFBP
AML UAE assisted a DFNBP in submitting and mastering Suspicious Transaction Reports (STR) on the goAML platform. Our client is an established medium-sized Designated Non-Financial Businesses and Professionals (DNFBPs) in UAE.
On a daily basis, the client engages with the diverse variety of customers and transactions, which caused the DNFBP to struggle with detection of suspicious transactions and activities, such as Money Laundering, Financing of Terrorism, and Proliferation Financing (ML/FT and PF).
Customer Goals:
As a DNFBP entity, the client is governed by the Federal Decree-Law No. 20 of 2018 which requires DNFBPs to report all suspicious activities and transactions to the UAE FIU. To comply with regulatory requirements and effectively deal with transactions engaged with customers, the client is required to enhance its ability to detect suspicious transactions and file Suspicious Transaction Report (STR) in a timely manner.
In addition, the client needed a streamlined, step-by-step process that the compliance team could adopt for filing STRs through the goAML platform. Once the process was defined, the client requested CAMS Certified AML Expert from AML UAE to train the staff on the red flags associated with their business, the role of the frontline staff, the compliance team, and the management in detecting and handling customer transactions and activities indicating potential ML/FT and PF threats.
Challenges:
As a DNFBP entity, the client routinely engages with various customers and businesses. While engaging, the client encountered various situations requiring the filing of an STR on the goAML platform.
However, the client, because of its medium-sized business, lacked the resources, both in terms of personnel and technology, to monitor and report suspicious transactions. This impacted the client’s ability to report STRs on time. Further, the client also faced various challenges in STR filing:
- Understanding regulatory requirements surrounding STR filing
- Red flags associated with the relevant DNFBP sector
- Identifying suspicious transactions and avoiding false alerts
- Conducting manual and time-consuming reporting processes
Addressing these challenges required the client to collaborate with AML UAE to develop clear policies and procedures for reporting suspicious transactions.
Legal Background:
The DNFBP is governed by:
- Federal Decree Law No (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations
- Federal Decree Law No (26) of 2021 to amend certain provisions of Federal Decree Law No (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations
- Cabinet Decision No (10) of 2019 concerning the Executive Regulations of Federal Decree Law No (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations
- Guidelines for Designated Non-Financial Businesses and Professions (DNFBPs)
DNFBPs in UAE are mandated by the AML regulatory framework to identify and file Suspicious Transaction Reports (STRs) through the goAML Portal of the UAE Financial Intelligence Unit.
Solution Provided by AML UAE Team:
AML UAE collaborated with the DNFBP and helped them implement an efficient approach to comply with regulatory reporting requirements.
- We helped the, a DNFBP to understand complex regulatory requirements surrounding STR filing, enabling the client to effectively detect instances of suspicious transactions and activities indicating ML/FT and PF. This helped the client in the prevention and detection of suspicious transactions, safeguarding the business operations and reputation.
- We conducted a thorough assessment of the client’s current AML compliance and regulatory reporting processes and systems to identify any gaps in meeting STR filing requirements.
- We presented the client with a clear step-by-step procedure for STR reporting, highlighting each step, job roles and responsibilities, a template for raising internal STR, approval requirements, Turn-Around Time (TAT) to be followed, and record-keeping requirements.
- We helped the client implement an automated regulatory reporting system to replace the manual, time-consuming process.
- Hands-on AML training was provided to the frontline employees for the identification and internal escalation of red flags related to suspicious activities and transactions, the procedure for submitting internal STR, and awareness was provided around the “tipping off” provisions.
- The AML compliance team was provided with thorough AML training around handling internal STR, tipping-off provisions, goAML reporting procedures, and maintaining business relationships during and after filing a STR.
End Result:
Through collaboration with the AML UAE Team, our client attained accuracy and efficiency in filing STRs.
With our assistance, the , a DNFBP achieved mastery in STR filing, ensuring compliance with AML regulations in the UAE, thus mitigating the risk of penalties and reputational damage.
Furthermore, by automating manual processes, the client reduced the time required to file STR by 70%, allowing for the timely reporting of suspicious transactions and activities on the goAML platform.
Through data analysis and risk assessment, false alarms were minimised, enabling the client to focus on red flags and enhancing the effectiveness of their AML/CFT efforts.
The guidance provided by AML UAE helped the client with STR reporting and enhanced their AML compliance capabilities.
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