Guidance on Targeted Financial Sanctions for FIs, DNFBPs, and VASPs
Guidance on Targeted Financial Sanctions for FIs, DNFBPs, and VASPs
The term targeted sanctions means that such sanctions are imposed against specific individuals or groups, or undertakings.
The term targeted financial sanctions includes both asset freezing and prohibitions to prevent funds or other assets from being made available, directly or indirectly, for the benefit of individuals, entities, groups, or organization who are sanctioned.
Guidance on Targeted Financial Sanctions for FIs, and DNFBPs
By Executive Office of the Committee for Goods Subject to Import and Export Control – updated as of May 2022
The Executive Office of the Committee for Goods Subject to Import and Export Control has issued guidance on targeted financial sanctions for Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) in UAE.
Guidance on Targeted Financial Sanctions for FIs, DNFBPs, and VASPs
By Executive Office for Control & Non-Proliferation – updated as of September 2022
The Executive Office for Control & Non-Proliferation (EOCN) has updated the Guidance on Targeted Financial Sanctions (TFS) implementation for Financial Institutions, Designated Non-Financial Businesses and Professions, and Virtual Asset Service Providers in UAE. The said guidance captures the regulatory requirements followed by the FIs, DNFBPs, and VASPs as part of the effective implementation of Targeted Financial Sanctions.
The guidance note discusses the purpose of TFS, the freezing of funds, sector-relevant examples, and reporting related to TFS. Regarding enforcement of the TFS by the FIs, DNFBPs, and VASPs, the guidance document provides that the Supervisory Authorities have powers to supervise the implementation of TFS and issue administrative sanctions against the non-complying entity.
FAQs About Guidance on Targeted Financial Sanctions for FIs, DNFBPs, and VASPs
Targeted sanctions mean that certain restrictions or sanctions are levied against particular individuals, entities, or groups. The term TFS includes freezing assets or funds without delay and prohibiting making any funds or services available for the benefit of the sanctioned person
TFS measures are to be complied with by every natural person and corporates (whether they are FIs, DNFBPs, VASPs, or not), including government authorities located in the UAE and operating within the UAE’s jurisdiction.
In case of a confirmed match, you must freeze the designated person’s funds without delay and report the same on the goAML Portal by submitting a Funds Freeze Report (FFR). The FFR includes information related to the type and amounts of assets frozen, ID details of the matched person, and other supporting documents.
In case of a partial name match, you should suspend the transaction with the person immediately and file a Partial Name Match Report (PNMR) via the goAML Portal. The PNMR must capture the details around the suspended transaction and ID details of the partially matched person, along with supporting documents.
The Cabinet Decision No. 74 of 2020 does not provide any timeframe for withholding the frozen funds; thus, the obligation to keep such funds could apply indefinitely. It is pertinent to note that the FIs, DNFBPs, and VASPs are obligated to lift the freezing measures once the sanctioned person has been removed from the Sanctions Lists.
Yes, you must report any previous transactions with the designated person. Please note that you must explicitly mention in the FFR or PNMR that you neither currently hold any funds of such person nor are engaged in providing services to the designated person
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