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Dubai Financial Services Authority issues counter-money laundering consultation paper

BIScom Subsection: 
Author: 
Nigel Morris-Cotterill

Titled "PROPOSED CHANGES TO THE DFSA’S ANTI MONEY LAUNDERING, COUNTER-TERRORIST FINANCING AND SANCTIONS REGIME," the consultation paper was issued on 18 February 2018 and the consultation period ends on 24th March 2018.

Notes by Nigel Morris-Cotterill, The Anti Money Laundering Network

It is proposed that new law and regulation clearly define the extent of the authority of the DFSA so that it is "the exclusive [money laundering, etc] regulator for all Relevant Persons in the DIFC. That is a long overdue proposal.

It is also proposed to greatly enhance the regulatory regime for DNFBPs and the proposals require that such businesses follow a system of registration and reporting broadly similar to financial institutions. This is a good measure.

Equally needed is a the proposal to remove a current exemption for some businesses that provide certain trust services. This is a thorny problem but the limits need to be understood: it is not proposed that all trusts be registered - private trusts will remain possible as they do in other jurisdictions. It is trust services providers, that is those who set up and manage trusts and act as professional trustees, that will fall under the new proposals. This is a necessary amendment given the long-standing use of trusts for a variety of illegal and unlawful purposes.

Further reading: http://dfsa.complinet.com/en/d...

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