AML & Due Diligence Compliance Services in the UAE

Corporate Compliance Services

AML & Due Diligence

Corporate Service Providers (CSPs) in the UAE are legally required to conduct continuous due diligence and adhere to Anti-Money Laundering (AML) regulations concerning their clients. This obligation reflects the UAE’s commitment to global standards in combating money laundering and the financing of terrorism, in line with the efforts led by organizations such as the Financial Action Task Force (FATF). These regulatory requirements are outlined under Federal Decree-Law No. (20) of 2018, which establishes the framework for AML compliance and ongoing client due

Service Description

Legislative Framework and Procedural Obligations

Federal Decree-Law No. (20) of 2018 requires Corporate Service Providers (CSPs), along with other financial and designated non-financial businesses, to adopt stringent Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) measures. These measures include customer due diligence, continuous monitoring, reporting of suspicious transactions, and maintaining comprehensive records. Further guidance is provided under Cabinet Decision No. (10) of 2019, which outlines the specific procedural requirements for implementing Decree-Law No. (20) of 2018. This includes the obligation for CSPs to perform ongoing due diligence and report any suspicious activities to the relevant authorities.

Guidance from the Ministry of Economy

The Ministry of Economy, as the primary regulatory authority, provides detailed guidelines and updates to ensure that Corporate Service Providers (CSPs) adhere to AML/CFT standards. These guidelines clarify compliance expectations and help CSPs meet regulatory requirements. Compliance monitoring is overseen by the Ministry of Economy in collaboration with entities such as the Financial Intelligence Unit (FIU). To meet these obligations, CSPs must establish robust AML/CFT compliance frameworks to ensure ongoing adherence to the regulatory standards.

Compliance Measures and Risks

Failure to comply with AML/CFT regulations presents serious risks, including substantial financial penalties, revocation of business licenses, and other disciplinary actions. Given the vital role these regulations play in safeguarding the integrity of the UAE’s financial system, it is essential for Corporate Service Providers (CSPs) to maintain effective compliance programs. The Ministry of Economy also requires CSPs to undergo regular audits to confirm their adherence to AML regulations and other applicable laws, ensuring the accuracy of KYC and AML submissions in line with Federal Decree-Law No. (20) of 2018.

Our Comprehensive AML & Due Diligence Services

We offer a full range of services that include comprehensive file management, taking a holistic approach to ensure not only legal compliance but also operational excellence. Adhering to AML and due diligence regulations is an ongoing requirement, crucial for maintaining the legal and operational integrity of your business. Annual renewals are essential for sustaining compliance, underscoring the importance of meeting these legal obligations for long-term business success in the UAE. Our expert guidance on AML and due diligence processes is firmly based on the stringent regulations set by the UAE Ministry of Economy, ensuring alignment with the highest standards of financial integrity.

The information provided should not be construed as a direct or implied recommendation or endorsement of any particular strategy, decision, or course of action. Clients are advised to consult with their tax, legal, or professional advisors to assess the relevance and applicability of this information to their specific circumstances. Growth Partners disclaims any liability for errors or omissions in this information, or for any loss or damage arising from reliance on it. Use of and reliance on this information is at the user’s own risk.

Frequently Asked Questions

Learn more about company formation in the United Arab Emirates

In the United Arab Emirates, you can establish entities like Limited Liability Companies (LLC), Free Zone Entities, Sole Proprietorships, and Branches of Foreign Companies.

The company formation process in the UAE can take anywhere from a few days to several weeks, depending on the type of company and the specific requirements involved.

The United Arab Emirates offers a tax-free environment for most businesses, with no personal or corporate income tax, provided the company qualifies for Free Zone status.

Corporate Compliance Services