Guidance

1. In Rule 11.1.1(1), taking reasonable measures to comply with resolutions or Sanctions may include, for example, a Relevant Person not undertaking a transaction for or on behalf of a Person undertaking further due diligence in respect of a Person.
2. Relevant resolutions or Sanctions mentioned in Rule 11.1.1 may, among other things, relate to money laundering, terrorist financing or the financing of weapons of mass destruction, or otherwise be relevant to the activities carried on by the Relevant Person. For example:
(a) a Relevant Person should exercise due care to ensure that it does not provide services to, or otherwise conduct business with, a Person engaged in money laundering, terrorist financing or the financing of weapons of mass destruction; and
(b) a Recognised Investment Exchange or Recognised Clearing House, as a Recognised Body, should additionally exercise due care to ensure that it does not facilitate fund raising activities or listings by Persons engaged in money laundering or terrorist financing or financing of weapons of mass destruction.
3. A Relevant Person should be proactive in checking for, and taking measures to comply with, relevant resolutions or sanctions which the Relevant Person is required to comply with, under the laws of ADGM or any other jurisdiction. The Regulator expects Relevant Persons to perform checks on an ongoing basis against their customer databases and records for any names appearing in resolutions or sanctions which the Relevant Person is required to comply with as well as to monitor transactions accordingly.
4. A Relevant Person may use a database maintained elsewhere for an up-to-date list of resolutions and sanctions, or to perform checks of customers or transactions against that list. For example, it may wish to use a database maintained by its head office or a Group member. However, the Relevant Person retains responsibility for ensuring that its systems and controls are effective to ensure compliance with this Rulebook.
Amended on (3 February, 2020).