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CBUAE issues new guidance on implementation of targeted financial sanctions

CBUAE issues new guidance on implementation of targeted financial sanctions
The guidance was effective from 8 July 2021

UAE - Mubasher: The Central Bank of the UAE (CBUAE) has issued new guidance for its licensed financial institutions (LFIs) regarding the implementation of targeted financial sanctions (TFS) to combat money laundering and financing of terrorism.

This step completes the guidance on TFS for financial institutions and designated non-financial businesses and professions, issued in May 2021 by the Executive Office of the Committee for Goods and Materials Subject to Import and Export Control, according to a press release on Monday.

The guidance, which was effective from 8 July 2021, will ensure the understanding and effective implementation by LFIs of their statutory anti-money laundering and combatting the financing of terrorism (AML/CFT) obligations.

Under the new guidance, LFIs will set, implement and update a sanctions compliance programme, with a risk assessment, screening process, and staff training programme.

The programme should be applied across institutions, including branches, subsidiaries, and other entities in which LFIs own a majority interest.

LFIs should register on the Executive Office’s website to receive an update on the listing and de-listing of individuals or entities in the United Nations Consolidated List and the Local Terrorist List.

Hence, when a match to a listing is found through the screening process, the institutions should freeze the funds of the listed individuals or entities within 24 hours and notify CBUAE and the Executive Office of any freezing measures.

The Governor of CBUAE, Khaled Mohamed Balama, said: "This Guidance is one of many that we have and will continue to issue over the coming period as CBUAE looks to strengthen the understanding and implementation of its requirements amongst the financial community, in line with the Financial Action Task Force's standards."