Interpreting Central Bank Law - Addressing Mandated AML Training For Banks in the UAE - 0 views
started by Rufus Kramer on 15 Mar 12
started by Rufus Kramer on 15 Mar 12
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In response to the rising amount of money laundering cases in the center East, UAE banks have started to reevaluate their AML policies and procedures to ensure that they are compliant with the regulations of the CBUAE. As per Article 17 of CBUAE Sale paper No. 24/2000, the bank's Compliance Officer is in charge of providing training to all staff members who have the effect of handling cash or overseeing accounts. But while regulatory paperwork and laws may insist that training is necessary or designate responsibility to your bank's compliance official, it often does not contain instructions for what pursue a career should cover or ways to implement it.
To fulfill the requirements of the CBUAE, UAE banks may take constant and consistent measures to defend their funds and the funds of their customers against terrorist financing by implementing training. UAE banks can preferred protect themselves and their customers in the potential risk of funds laundering by becoming familiar with CBUAE legislature, recognizing the signs of money laundering in the UAE and implementing a certified AML training program.
UAE Laws and regulations
The UAE and also the CBUAE have issued and implemented laws so as to control the threat presented by money laundering and terrorist financing. The following laws each address a different area of AML and protect the UAE in the risk of money washing and terrorist financing.
• The Federal Law Involving Promulgating Penal Code : summarizes a penalty for almost any perpetrator who is not aware the property that they have obtained originated from illegal or criminal means.
• Federal Law Regarding Criminalization associated with Money Laundering - gives further definition to your crime of money laundering and provides the means to frost nova criminal assets, such since bank accounts, that are linked to money laundering.
• Country wide Law on Combating Terrorism Criminal acts - defines elements and actions of terrorism offenses and penalties for violations. The Law also allows all proceeds that contain resulted in a criminal offense to be confiscated.
Within the last decade, governments and central banks across the world have increased the pressure on banks and also other financial institutions to place tighter control on the financial systems. Because of the UAE's position being a major financial hub in the centre East, this causes extreme vulnerability of UAE loan companies to money laundering crimes. In 2009 alone, the UAE experienced a staggering 1, 729 cases associated with money laundering.
As the industry evolves, UAE banks should employ an AML training process to greatly reduce the amount of risk and to help employees know the way such training prevents risk. It is important, accordingly, for banks in the UAE try using a variety of risk direction practices and tools.
Exercise
As money laundering continues to become prominent in your UAE, informal banking that's functioning without training still remains unregulated. Rather than taking a complicated strategic approach to training, banks have focused on tools, such as risk mitigation and risk erradication. These tools prove being evasive and not nearly as effective being a certified, customized training program from an accredited training provider.
The Bank Secrecy Act (BSA)
Any UAE banks working with the country in any capacity should also be trained on the us Bank Secrecy Act (BSA) to supplement some other AML training. The BSA was enacted to help detect and prevent funds laundering. The purpose of the BSA is to identify and detect financial criminal activity. As part of that BSA, all financial institutions must fulfill certain requirements including reporting large currency deals which exceed $10, 000, confirming suspicious activity and applying a BSA compliance application.
Basel II
Basel II supplies recommendations on banking regulations, created to establish an international standard that can be used when creating regulations. Basel II generates to be able to measure and monitor risk and is a key tool for any safety of UAE bankers. It is also fundamental in ensuring the competition of UAE banks as Basel II becomes entirely implemented and practiced at financial institutions many countries. As we enter a transitional period within the banking industry, there is a crucial need for much more skilled professionals in risk management in the UAE.
Final Word
It's the responsibility of all bankers operating in the UAE to ensure that every employee is properly trained in Anti Money Laundering. The CBUAE must guide banks in their types of training to fight funds laundering, however it is a responsibility of the lender to implement and monitor the training. AML training must end up mandated by bank management to be able to manage risk as circumstances of money laundering always rise and pose some sort of threat to banks along the UAE.
REFERENCE:
http://www.netarticleshack.com/Art/657643/278/Money-Transfer-Policies-And-Anti-Money-Laundering-Policies-In-The-USA.html
http://www.newworldproducts.org/Articles/Art/242831/311/Money-Transfer-Rules-And-Anti-Money-Laundering-Policies-In-The-United-States.html
http://www.realestatearticles4u.com/Art/320212/309/Cash-Transfer-Regulations-And-Anti-Money-Laundering-Policies-In-America.html