What are the risk categories in AML?

The significant risk categories in AML are: Client or customer risk Products and services risk Location risk Channels risk Employee risk Any other risk

What is the key criterion in AML risk rating?

The fundamental principles of AML risk rating are: Identifying the risks of products and services Examining the customers to know them well Inspecting the business transactions Conducting a check of the channels of communication and transaction Keeping an eye on the geographical location of clients

What are the 5 types of risk assessment?

Client or customer risk Products and services risk Location risk Channels risk Transaction risk

What are the 3 stages in risk assessment?

The three stages of risk assessment are: Identify risks your business is exposed to Classify the risks into low, medium, and high Analyse them in detail for better evaluation.

Annual AML/CFT Risk Assessment Report

Designated Non-Financial Businesses and Professions in UAE must file an annual AML/CFT Risk Assessment Report with the Ministry of Economic (MOE), UAE.

Pursuant to Article (44) 1 of 'Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulations of Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations', DNFBPS in UAE are required to file annual AML/CFT Report.

Get assistance in filing Annual AML/CFT Risk Assessment Report

Risk-based approach for annual AML Report Filing

The Annual AML/CFT Risk Assessment Report requires the filing of information that will form part of the Ministry of Economy's efforts to apply a risk-based approach while executing its mandate as a Supervisory Authority of Designated Non-Financial Businesses or Professions.

AML UAE assists DNFBPs in UAE to remain compliant with the AML Laws of UAE. Dealers in Precious Metals and Stones and other DNFBPs can avail of our services to comply with the requirement of filing of AML/CFT Risk Assessment Report.

Information required for Annual AML/CFT Report Submission

Annual AML/CFT Risk Assessment Report requires information submission pertaining to the:

AML UAE helps you file Annual AML/CFT Risk Assessment Questionnaire and provides a range of Anti-Money Laundering Consulting Services.

Annual AML/CFT Survey Questionnaire

The annual AML/CFT Risk Assessment Report contains a AML/CFT Survey Questionnaire to be filled up by the DNFBPs.

It requires submission of information related to:

The legal form of the reporting entity
Whether Owners/Shareholders have 25% or more ownership or control
Whether the beneficial owner has 25% or more ownership or control
If the reporting entity is a branch or subsidiary of another entity located outside of the UAE
Total number of employees in the organization
Total number of customers during the reporting period
Number of resident customers who are natural persons
Number of customers for whom residency is not known
Whether the reporting entity has PEPs as customers
Number of corporate customers bifurcated by International, mainland, free zone, or unknown customer country of establishment
Whether the organization sells jewelry
Whether the reporting entity engages in refining or works with others who conduct refining activities of precious metals and stone
Whether the entity performs domestic transactions
Whether the entity performs international transactions
Whether the entity accepts or makes cash payment equal to or above AED 55,000/-
List of additional products or services related to precious metals and stones provided by the company and not covered by the above questions
Whether the entity has accepted a single payment over AED 500,000/-
Whether the entity operates a store for face-to-face customers
Total number of face-to-face customers served in the reporting period
The role of the third-party entities
Any AML/CFT related compliance failures
Number and types of violations according to the violation/article/clause list
Whether the AML Policies are approved by the board and senior management
Whether the risk assessment considers the results of the national risk assessment
Whether the risk assessment considers customer risk
Whether the risk assessment considers delivery channel risk
Whether the board and senior management ensure that the shortcomings are rectified
Whether the entity has appointed a compliance officer
Whether the compliance officer prepares regular and periodic AML/CFT report for the board, senior management, and supervisory bodies
Whether the compliance officer reviews red flagged transactions and unusual transactions
Whether the customers are identified and verified using reliable and independent information in all cases
Whether EDD is undertaken for all high-risk customers
Whether the entity has signed up to the goAML system of the FIU
Whether the reporting entity has established a written list of red flags aimed at identifying suspicious transactions related to ML and TF
Whether the entity keeps records for at least 5 years
Whether ongoing AML/CFT training is provided to staff
Whether the entity has written policies and procedures to check if customers or beneficial owners are subjects of targeted financial sanctions by the United Nations Security Council, the UAE, or any other relevant body
Whether the board and senior management engagement covers TFS
Whether the entity has ever identified exposure to TFS designated persons

Licensing authority
Nationality wise number of Owners/Shareholders having 25% or more ownership or control
Nationality wise number of beneficial owners having 25% or more ownership or control
The country of the parent entity
Turnover for the reporting period
Whether customers/clients are natural persons
Number of non-resident customers who are natural persons
Whether the reporting entity records customer's nationality
Whether the reporting entity has customers that are legal persons
The monetary value of buy and sale transactions for precious metals and stones during the reporting period
Whether the organization sells bullion
The primary business activity by revenue
The number of domestic transactions by zone
Top 5 countries by number of transactions and number of transactions made during the reporting period
Whether the entity has received cash amounts exceeding AED 55,000/- for jewelry, bullion, or precious metals and stones
Whether the entity has accepted virtual currency payment in the reporting period
Whether the company offers products or services in the Commercial Free Zone
Whether the entity operates a website for online customers
Whether the reporting entity uses third-party service
o To sell products or deliver services
o Introduce clients
o Conduct CDD of the reporting entity's clients
Whether the entity exports or arranges to export products out of the country
Number of AML/CFT violations
Whether the organization has prepared AML/CFT policies and procedures
Whether the entity has carried out an internal risk assessment to understand its money laundering and terrorist financing risks
Whether the risk assessment considers geographic risk
Whether the risk assessment considers products and services and transaction risk
Whether the board & senior management receive regular AML/CFT reports
Whether the senior management reviews high-risk customers
Whether the compliance officer has the necessary power and independence to perform his duties
Whether the compliance officer ensures compliance with the AML/CFT policies and procedures of the entity
Whether the entity's CDD requirements are in line with the risk-based approach
Whether the reporting entity identifies and verifies the identity of all beneficial owners of customers
Whether the entity has checks in place to determine if a customer or the beneficial owner is a PEP
Whether the entity has implemented a process to monitor suspicious transactions that can be potentially linked to ML and TF
Whether the red flags form an integral part of written AML/CFT policies and procedures
Whether the CDD and business correspondence kept for at least 5 years after the end of the customer relationship
Whether the AML/CFT training is provided immediately or shortly after recruitment

AML UAE assists organizations in the submission of the Annual AML/CFT Risk Assessment Report, AML Health Check, AML Policy Manual Preparation, KYC, CDD, and EDD.

FAQs

AML risk assessments include evaluating risks of products, services, transactions, customers, and locations of businesses. It is a process of identifying threats to entities from financial frauds such as money laundering, terrorism financing, bribery, and corruption.

The process of assessment or evaluation of risks to a business from the activities of money laundering and terrorism financing is ML/TF risk assessment. Such risk assessments include risk evaluation of customers, products and services, geographical location, transactions, and processes.

The significant risk categories in AML are: