TFS in the UAE: A Comprehensive Guide for FIs, DNFBPs, and VASPs

TFS in the UAE: A Comprehensive Guide for FIs, DNFBPs, and VASPs

The following is a guide for Financial Institutions (FIs), Designated Non-Financial Businesses and Professions (DNFBPs), and Virtual Asset Service Providers (VASPs) operating in the UAE. It aims to provide a comprehensive understanding of Targeted Financial Sanctions (TFS) as outlined in Cabinet Resolution No. 74 of 2020.

TFS are measures implemented to prevent money laundering (ML) and terrorist financing (TF) by imposing asset freezes and financial restrictions on individuals and entities suspected of involvement in terrorist or proliferation activities.

The guide outlines the key obligations for FIs, DNFBPs, and VASPs, including registration with the Executive Office, regular screening of customer databases, and immediate freezing of accounts upon identifying a match on the sanction lists. AML Compliance Officers play a critical role in reporting suspicious activity, sanction matches, and unfreezing of accounts to the Financial Intelligence Unit (FIU) within five days.

Entities must establish robust policies and procedures to ensure effective implementation of TFS measures and cooperate with the Executive Office and Supervisory Authorities regarding TFS implementation.

Failure to comply with TFS regulations may result in significant financial penalties ranging from AED 50,000 to AED 5,000,000, and in severe cases, imprisonment as well.

Future Audit, a leading AML/CFT compliance solutions provider in the UAE, offers a comprehensive suite of services including TFS Screening Solutions, AML/CFT Program Development & Implementation, AML Training & Awareness, and Ongoing Support to ensure that your business adheres to the critical TFS regulations in the UAE.

Please note that the information provided in this guide is for general informational purposes only and should not be taken as legal advice.