• AML 12. AML 12. Money Laundering Reporting Officer

    • AML 12.1 AML 12.1 Appointment of a MLRO

      • AML 12.1.1

        (1) A Relevant Person must appoint an individual as the MLRO who has an appropriate level of seniority, experience and independence to act in the role, with responsibility for implementation and oversight of its compliance with the Rules in the AML Rulebook. It must do so by completing and filing with the Regulator the appropriate form specified by the Regulator.
        (2) The MLRO in (1) and Rule 12.1.7 must be resident in the U.A.E.
        Amended on (15 April, 2019).

      • AML 12.1.2

        The individual appointed as the MLRO of a DNFBP that comprises as one officer, partner or principal can, with the prior approval of the Regulator be the same person as the officer, partner or principle of the DNFBP.

        Added on (15 April, 2019).

      • AML 12.1.3 AML 12.1.3

        The individual appointed as the MLRO of a Representative Office must be the same individual who holds the position of Principal Representative of that Representative Office.

        Amended on (15 April, 2019).

        • Guidance

          1. Authorised Persons are reminded that under GEN Rule 5.5.1 the MLRO function is a mandatory appointment. For the avoidance of doubt, the individual appointed as the MLRO of an Authorised Person, other than a Representative Office, is the same individual who holds the Recognised Function of MLRO of that Authorised Person. Authorised Persons are also reminded that the guidance under GEN Rule 5.5.2 sets out the grounds under which the Regulator will determine whether to grant a waiver from the residence requirements for an MLRO. The same guidance would apply by analogy to other Relevant Persons seeking a waiver from the MLRO residence requirements.
          2. The individual appointed as the MLRO of a Recognised Investment Exchange or Recognised Clearing House is the same individual who holds the position of MLRO of that Recognised Investment Exchange or Recognised Clearing House under the relevant MIR Rule.
          Amended on (15 April, 2019).

      • AML 12.1.4

        If the MLRO leaves the employment of the Relevant Person, the Relevant Person must immediately appoint a new MLRO or arrange temporary cover for the MLRO appointment.

        Amended on (15 April, 2019).

      • AML 12.1.5

        A Relevant Person, other than a Representative Office, must appoint an individual to act as a deputy MLRO of the Relevant Person to fulfil the role of the MLRO in his absence.

        Added on (15 April, 2019).

      • AML 12.1.6 AML 12.1.6

        A Relevant Person's MLRO and deputy MLRO must deal with the Regulator in an open and co-operative manner and must disclose appropriately any information of which the Regulator would reasonably be expected to be notified.

        Amended on (15 April, 2019).

        • Guidance

          1. The individual appointed as the deputy MLRO need not apply for the Regulator's approval.
          2. A Relevant Person should make adequate arrangements to ensure that it remains in compliance with the AML Rulebook in the event that its MLRO is absent. Adequate arrangements would include appointing a temporary MLRO for the period of the MLRO's absence or making sure that the Relevant Person's AML systems and controls allow it to continue to comply with these Rules when the MLRO is absent.
          Amended on (15 April, 2019).

      • AML 12.1.7 AML 12.1.7

        A Relevant Person may outsource the role of MLRO to an individual outside the Relevant Person provided that the individual under the outsourcing agreement is and remains suitable to perform the MLRO role.

        Amended on (15 April, 2019).

        • Guidance

          Where a Relevant Person outsources specific AML tasks of its MLRO to another individual or a third party provider, including the case where they are within it's corporate Group, the Relevant Person remains responsible for ensuring that the duties undertaken by the MLRO ensure its compliance with the requirements in the AML Rulebook. The Relevant Person should satisfy itself of the suitability of anyone who acts for it in the role of MLRO.

          Amended on (15 April, 2019).

    • AML 12.2 AML 12.2 Qualities of a MLRO

      • AML 12.2.1 AML 12.2.1

        A Relevant Person must ensure that its MLRO has:

        (a) direct access to the Governing Body and its Senior Management;
        (b) sufficient and up-to-date qualifications and experience to fulfil the role;
        (c) sufficient resources including, if necessary, an appropriate number of appropriately trained Employees to assist in the performance of his duties in an effective, objective and independent manner;
        (d) a level of seniority and independence within the Relevant Person to enable him to act on his own authority;
        (e) timely and unrestricted access to information the Relevant Person has about the financial and business circumstances of a customer or any Person on whose behalf the customer is or has been acting sufficient to enable him to carry out his responsibilities in accordance with Rule 12.3.1; and
        (f) unrestricted access to relevant information about the features of the Transaction which the Relevant Person has entered into or may have contemplated entering into with or for the customer or a Person on whose behalf a customer is or has been acting.
        Amended on (15 April, 2019).

        • Guidance

          The Regulator considers that a Relevant Person will need to consider this Rule most especially when appointing an outsourced MLRO. Any external MLRO that is appointed will need to have the actual or effective level of seniority that the role requires.

          Amended on (15 April, 2019).

    • AML 12.3 AML 12.3 Responsibilities of a MLRO

      • AML 12.3.1

        A Relevant Person must ensure that its MLRO implements and has oversight of and is responsible for the following matters:

        (a) the day-to-day operations for compliance by the Relevant Person with its Anti-Money Laundering policies, procedures, systems and controls;
        (b) acting as the point of contact to receive notifications from the Relevant Person's Employees under Rule 14.2.2;
        (c) taking appropriate action under Rule 14.3.1 following receipt of a notification from an Employee;
        (d) making, in accordance with Federal AML Legislation, Suspicious Activity Reports;
        (e) acting as the point of contact within the Relevant Person for competent U.A.E. authorities and the Regulator regarding money laundering issues;
        (f) responding promptly to any request for information made by competent U.A.E. authorities or the Regulator;
        (g) receiving and acting upon any relevant findings, recommendations, guidance, directives, resolutions, Sanctions, notices or other conclusions described in Chapter 11; and
        (h) establishing and maintaining an appropriate money laundering training programme and adequate awareness arrangements under Chapter 13.
        Amended on (15 April, 2019).

    • AML 12.4 AML 12.4 Reporting

      • AML 12.4.1

        The MLRO must report semi-annually to the Governing Body or Senior Management of the Relevant Person on the following matters:

        (a) the results of the review under Rule 4.1.1(4);
        (b) the Relevant Person's compliance with applicable Anti-Money Laundering laws including these Rules;
        (c) any relevant findings, recommendations, guidance, directives, resolutions, Sanctions, notices or other conclusions and how the Relevant Person has taken them into account; 
        (d) any internal Suspicious Activity Reports made by the Relevant Person's Employees, or its agents or members of its Group where acting on its behalf, and action taken in respect of those reports, including the grounds for all decisions;
        (e) any external Suspicious Activity Reports made by the Relevant Person, or its agents or members of its Group where acting on its behalf, and action taken in respect of those reports including the grounds for all decisions; and
        (f) any other relevant matters related to Anti-Money Laundering as it concerns the Relevant Person's business.
        Amended on (9 November, 2020)
        Amended on (3 February, 2020)

      • AML 12.4.2

        A Relevant Person must ensure that its Governing Body or Senior Management promptly:

        (a) assess the report provided under Rule 12.4.1;
        (b) take action, as required, subsequent to consideration of the findings of the report, in order to resolve any identified deficiencies; and
        (c) make a record of their assessment pursuant to paragraph (a) and the action taken pursuant to paragraph (b).
        Amended on (15 April, 2019).

      • AML 12.4.3

        The Relevant Person must provide to the Regulator a copy of:

        (a) The report provided under Rule 12.4.1; and
        (b) the record made under Rule 12.4.2(c).
        Amended on (3 February, 2020).