Regulatory Alerts2022-08-01
Guidance for Licensed Financial Institutions on the Risks Relating to Politically Exposed Persons
The United Arab Emirates Central Bank issued this guidance to direct licensed financial institutions on complying with statutory obligations regarding Politically Exposed Persons under the UAE's Anti-Money Laundering and Combating the Financing of Terrorism framework. The document mandates specific risk management systems, senior management approval, and enhanced due diligence measures for foreign PEPs and their related customers to mitigate corruption and bribery risks. It further requires institutions to implement robust transaction monitoring, suspicious reporting protocols, and governance training to ensure effective identification and mitigation of illicit finance threats associated with domestic PEPs and heads of international organizations.