Laws on financial crimes amended

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has enacted the DIFC Regulatory Amendment Law, No. 6 of 2018. The Law, which amends the Regulatory Law of 2004, will come into force on October 29 and, together with changes to DFSA (Dubai Financial Services Authority) Anti-Money Laundering Rules, will make a number of important changes to the regulatory regime in the Dubai International Financial Centre (DIFC).

The amendments follow a self-assessment of the DIFC framework in preparation for the upcoming UAE Financial Action Task Force (FATF), Mutual Evaluation in 2019. The amendments will enhance the anti-money laundering and counterterrorist financing, AML/ CTF, regime. This will support the ongoing alignment of the DIFC regime with the FATF recommendations.

Changes

The changes include updating the DFSA’s approach to registration and supervision of Designated NonFinancial Businesses or Professions (DNFBPs). This includes a prohibition from conducting any DNFBP activities, in or from the DIFC, without registration by the DFSA. The changes also include enhancements to the supervisory regime, which will enable the DFSA to suspend or withdraw the registration of a DNFBP, if it is in breach of the Law or the Rules or other AML legislation.

In order to ensure the orderly transition of DNFBPs already established in the Centre to the new regime, the DFSA clarified that the transitional arrangements would apply over a threemonth period from effective date of the Law.