Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations identifies dealers in precious metals and precious stones (DPMS) as Designated Non-Financial Business and Professions (DNFBPs) and subjects them to specific AML/CFT obligations under the AML/CFT legislative and regulatory framework of the United Arab Emirates.
AML/CFT OBLIGATIONS FOR DPMS
- Identifying and assessing ML/FT risks
- Establishing, documenting, and updating policies and procedures to mitigate the identified ML/FT risks
- Maintaining adequate risk-based customer due-diligence (CDD) and ongoing monitoring procedures
- Identifying and reporting suspicious transactions
- Putting in place an adequate governance framework for AML/CFT, including appointing an AML/CFT Compliance Officer, and ensuring adequate staff screening and training.
- Maintaining adequate records related to all of the above
- Complying with the directives of the Competent Authorities of the State.The ultimate purpose of these measures is to establish a reliable paper trail of business relationships and transactions, and to trace the true beneficial ownership and movement of assets, in order to prevent DPMS from being exploited for the purposes of money laundering and/or the financing of terrorism, and to aid the Competent Authorities of the State by reporting suspicious transactions.
TRANSACTIONS TO BE REPORTED IN DPMSR
Transactions with Individuals
- All cash transactions with individuals (residents/visitors) equal or exceeding AED 55,000/- need to be reported in DPMSR.
Obtain and verify identification documents (Emirates ID or Passport) which needs to be reported in DPMSR.
Transactions with businesses/entities
- All cash transactions equal or exceeding AED 55,000/-
- All international wire transfers exceeding AED 55,000/-
- All transfers done through exchange houses exceeding AED 55,000/-
- Both entities having accounts with different banks operating in UAE where settlement is in USD.
- Settlement between two FZ (registered in UAE) companies in USD whereby their respective accounts are with different banks operating in UAE as USD settlement will be through international (cross border) wire transfer.
- Settlement between FZ & onshore companies (registered in UAE) under same scenarios as above.
Obtain a copy of the trade license and identification documents (Emirates ID or passport) of the person representing the company which needs to be reported in DPMSR.
REGISTER DPMS REPORT ON GOAML PORTAL:
DPMS should register the information in the Financial Intelligence Unit’s (FIU’s) goAML platform.
Keep records of all documents and information for a minimum period of 5 years.
TRANSACTIONS NOT TO BE REPORTED IN DPMSR:
- Credit card, cheque or local bank transfers with individuals equal or exceeding
AED 55,000/- need not be reported. However, if there is any suspicion arises, it has to be reported under STR (Suspicious Transaction Reporting under GoAML).
- Old gold/ jewellery exchanged for new jewellery if there is no cash transaction equal or exceeding AED 55,000/- such transactions need not be reported.
Businesses / Entities
- All transactions/Settlements via cheque or local bank (wire) transfers.
- Both entities having accounts with the same bank operating in UAE or with different banks operating in UAE where settlement is in
- Where settlement is in USD :
- Both entities having accounts with the same bank operating in UAE.
- Settlement between 2 Free Zone Co. (registered in UAE) companies in either AED or USD whereby both having accounts with same bank operating in UAE.
- Settlement between 2 onshore companies (registered in UAE) in USD having accounts with same bank operating in UAE.
- Trade between related parties whereas one is registered on mainland and other in Free Zone but having accounts with same bank operating in UAE in AED & USD.
- Barter transactions – Gold to Gold trading :
Wholesalers settling with gold bullion against jewellery (“Making charges” is not considered a reportable transaction if there is no buying or selling of precious metals and stones involved).
- Margin calls, Loans with banks
- Intra-company transfers
- Intra-company sale/ purchase
- If transactions are conducted through LC (Letter or Credit by banks)
- Transactions with international commercial banks
- Wire transfer from a mainland company to a company in Free zone (part of the group company, therefore intra company) for the supplies – No reporting is required if it’s within the same group.
- If the payment is made from an account outside the UAE jurisdiction to an account outside the UAE jurisdiction (without being routed through the UAE).
- All reporting to be done at the time of receiving or paying the funds.
- Reporting to be done within 2 weeks of occurring the qualifying transactions.