- Auditing
- 2023-04-08
What Are The Aml Compliance Requirements For Jewelers In Uae?
Governments and businesses alike are struggling to combat money laundering as the world becomes more linked. Criminals engage in money laundering when they try to make the money they've earned through dishonest means look like it came from a legal source. To combat this threat, nations have enacted Anti Money Laundering or AML regulations. In the United Arab Emirates or UAE, the jewelry business is among those that must adhere to anti-money laundering regulations.
How Can You Ensure Your Business Is AML Compliant?
Companies are required to adhere to AML compliance standards, which are a set of laws and regulations designed to prevent the laundering of money and the financing of terrorism. Customers must be verified, transactions must be monitored, and suspicious activity must be reported to the proper authorities. Noncompliance with AML requirements can result in fines, damage to your reputation, and even criminal penalties.
What end do we need to ensure jewelers are AML compliant?
Jewelers are an easy target for money laundering because to the high value of their products and the ease with which they can be transferred across borders. Due to its great value, jewelry is sometimes used by money launderers as a cover for the transfer of large sums of money. Because of this, AML compliance laws apply to jewelers in the UAE.
Do jewelers in UAE have to follow AML?
Jewelers in the UAE must follow AML regulations. Federal Law No. 20 of 2018 of the United Arab Emirates pertaining to the prevention of money laundering and the financing of terrorism sets down these regulations. Get the best AML Audit Service in Dubai from the top auditing players.
- Verification of Identities of Customers
Jewelers in the United Arab Emirates (UAE) are required by law to verify the identities of their customers. Because of this, they will need personal details from their customers such their names, addresses, and birth dates. Jewelers must also verify their customers' identities by inspecting government-issued photo identification and passports.
- Keeping tabs on things
Jewelers in the United Arab Emirates must keep records of their customers purchases. Information such as the name of the customer, the total amount transacted, and the mode of payment must be recorded here. These records should be kept for at least five years by jewelers.
- Communication of Suspicious Activity
Jewelers in the United Arab Emirates are required by law to report any instances of criminal behavior to the authorities. Transactions that are extremely large or complicated for no apparent business reason fall into this category. All transactions that a jeweler suspects may be used to launder money or fund terrorists must be reported.
- Education and amplification
Jewelers in the UAE are obligated to provide their staff with AML compliance training. This involves training on how to spot and report suspicious activity as well as the consequences for disobedience. Jewelers must also educate their employees on the importance of AML compliance and the fight against money laundering.
- Evaluation of Danger
Jewelers in the United Arab Emirates must conduct a risk assessment of their business. To do this, they must first determine the extent to which their company is vulnerable to money laundering and the financing of terrorism. Based on this assessment, jewelers should take the required measures to lessen these risks.
- Compliance with AML Procedures
In the United Arab Emirates, jewelers must implement an anti-money-laundering policy. This system should be tailored to the unique dangers that the jeweler faces in order to prevent money laundering and the financing of terrorism. Policies and procedures for customer identification and validation, transaction monitoring, and the reporting of suspicious activity should be part of the program.
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