Terrorist and Proliferation Financing Red Flags Guidance | EOCN

The Executive Office for Control & Non-Proliferation (EOCN) has issued new guidance highlighting Terrorist and Proliferation Financing Red Flags. The guidance aims to provide a consolidated list of Terrorist Financing (TF) and Proliferation Financing (PF) red flags that Financial Institutions (Fis), Designated Non-Financing Businesses and professions (DNFBPs), and Virtual Asset Service Providers (VASPs) have to take into consideration while identifying and detecting suspicious Terrorist Financing and Proliferation Financing and sanctions evasion activities.

The regulated entities should file a Suspicious Transaction Report (STR) or Suspicious Activity Report (SAR) to the Financial Intelligence Unit, UAE, in cases where they have ML/TF suspicion.

The guidance provided by the EOCN is useful to regulated entities as these red flags can be added to their screening and monitoring systems to better identify and detect suspicious activities and transactions.

The red flag indicators provided by the EOCN suggest the likelihood of the occurrence of the ML/TF activity. While the existence of a single red flag indicator may not provide conclusive evidence of a financial crime, a thorough examination of the facts of the case, activity, customer due diligence, etc., may help identify and detect illegal activities like money laundering or terrorist financing.