The Central Bank of the UAE (CBUAE) has issued a new AML/CFT Guidance on the implementation of Targeted Financial Sanctions (TFS) for its licensed financial institutions (LFIs). This Guidance supplements a previous Guidance that the Executive Office of the Committee for Goods and Materials Subject to Import and Export Control issued in May 2021. The Executive Office ensures the implementation of TFS in the UAE.
All LFIs must comply with the Executive Office’s requirements within one month from the date of implementation (July 8, 2021). It aims to help LFIs to understand and effectively complete their AML/CFT obligations. The Guidance suggests that LFIs should create, execute and periodically review a sanctions compliance program. This program should include a robust risk assessment, database screening and staff training. Such a compliance program should be implemented across the LFI’s branches, subsidiaries, etc.
LFIs must register on the Executive Office’s website to be notified about the listing and de-listing of individuals or entities in the United Nations Consolidated List and the Local Terrorist List. They must regularly screen their databases and transactions against the names on these two lists. They should also screen the databases and transactions immediately after they receive notification about an update. If the LFIs find a match during screening, they must promptly freeze the funds of the matched individuals or entities. Further, they must immediately inform the CBUAE and the Executive Office of these developments.
Source: Central Bank of the UAE
