UAE Law and Practice Contributed by: Stefan Mrozinski, Gabrielle Margerison (nee Lowe) and Arnold Krutilins, White & Case LLP
• Federal Decree-Law No 20/2018 (as amend - ed); • Cabinet Decision No 10/2019 (as amended); • Cabinet Decision No 58/2020; and • Federal Law No 7/2014, collectively, the “UAE’s AML/CTF Laws” . Financial institutions and VASPs fall within the scope of the UAE’s AML/CTF Laws. As such, where fintechs fall within the scope of the defi - nition of a financial institution or VASP, they will also fall within the scope of the UAE’s AML/CTF Laws. Fintechs regulated by the SCA are required to ensure compliance with the standards and obli - gations set out in the UAE’s AML/CTF Laws. This is confirmed, for instance, by SCA Decision No 13/RM/2021 (the “SCA Rulebook” ), which requires licensed bodies to meet the require - ments of the “Law of Anti-Money Laundering and Combating the Financing of Terrorism and Illicit Organisations and its Implementing Regu- lations” . The SCA has also issued a number of circulars and notices governing various aspects of AML/ CTF compliance, including the freezing and unfreezing of accounts and the implementation of targeted financial sanctions. This is in addition to any standards issued by the CBUAE in respect of this FATF guidance. Furthermore, both the VA Decision and the DVAL are explicit in requiring VASPs licensed thereunder to comply with the obligations of the UAE’s AML/CTF Laws. Under Article 71(1) of the DIFC Regulatory Law 2004, regulated FSPs are required to comply with the UAE’s AML/CTF Laws. The Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module of the DFSA Rulebook also
applies to regulated FSPs in respect of their activities carried on, in, or from the DIFC. Similarly, the UAE’s AML/CTF laws also apply to regulated FSPs in the ADGM. In addition, the ADGM’s Anti-Money Laundering and Sanctions Rules and Guidance Module to the FSRA Rule - book sets out further requirements for regulated FSPs to ensure compliance with the provisions of the UAE’s AML/CTF Laws. This includes implementing appropriate AML/CTF policies and procedures, establishing detection and reporting mechanisms for suspicious customers and transactions, and maintaining appropriate records of these transactions. 2.15 Financial Action Task Force Standards The AML and sanctions rules in the UAE gener - ally follow the standards imposed by the FATF. Since its removal from the FATF grey list in 2024, the UAE has continued to evidence its dedica - tion to accelerating its AML reform agenda by making various amendments to its AML laws in August 2024, launching a new national strategy for AML/CTF and proliferation financing devel - oped using the World Bank Group’s methodolo - gy and by continuing to take enforcement action in cases of non-compliance with AML rules and regulation. 2.16 Reverse Solicitation In “onshore UAE” , the SCA Rulebook contains a reverse solicitation exemption (from the require - ment to obtain a promotion licence from the SCA) where, on its own initiative, an investor inside “onshore UAE” enquires with an entity outside “onshore UAE” about the offer or purchase of a specific foreign security, without a promotion by the foreign issuer or their promoters or distribu - tors and provided that documentary evidence exists demonstrating this.
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