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DFSA Introduces New Regime For Designated Non-Financial Businesses and Professionals

Dubai, UAE, 15 January 2012: The Dubai Financial Services Authority ("DFSA") announces today that His Highness Sheikh Mohammed Bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, has enacted amendments to the Dubai International Financial Centre (DIFC) Law No 1 of 2004 (Regulatory Law 2004) under which the regulation of DIFC Anti-Money Laundering ("AML") and Combating the Financing of Terrorism ("CFT") requirements for Designated Non-Financial Businesses and Professions ("DNFBP") in the DIFC is transferred to the DFSA.

From today, the DFSA assumes responsibility for, and becomes the single AML/CFT regulator of, all AML/CFT supervision and enforcement in the DIFC. Previously DNFBPs were supervised for AML/CFT compliance by the Dubai International Financial Centre Authority (" DIFCA ").

Mr Abdulla Mohammed Al Awar, Chief Executive Officer of DIFCA said: "This move further portrays the co-operation between DIFC bodies to ensure that the highest standards of compliance are achieved. It also comes in line with our commitment to the continuous development of DIFC's legal and regulatory framework and providing the ideal platform for our clients to grow and prosper."

Accompanying these amendments to the Regulatory Law 2004 is the introduction of a new DFSA rulebook "Designated Non-Financial Businesses and Professions Module" ("DNF"), which provides rules and guidance to those Firms now falling under the DFSA's supervision.

Mr Paul M Koster, Chief Executive of the DFSA said: "The transfer of these supervision and enforcement powers to the DFSA creates a single regulator of AML/CFT obligations in the DIFC and will ensure greater consistency in the regulation of all DIFC-incorporated entities. The DFSA will continue to work closely with the Central Bank's AML Suspicious Cases Unit to combat the risk of money laundering and terrorist financing."

The DFSA has produced a quick guide to highlight the changes and implications for firms operating inside the DIFC of the new AML/CFT rules. This Guide is available in both English and Arabic and can be viewed on the DFSA website:

http://www.dfsa.ae/Documents/Leaflets%202011/DNFBP%202011.pdf

Additionally, the DFSA will shortly be contacting all DNFBPs within the DIFC to provide training and guidance on the changes. Any queries regarding the AML/CFT for DNFBPs can be directed via email to Mr Matt Gamble, Head of AML at STRunit@dfsa.ae

-Ends-

The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

Paul M Koster was appointed Chief Executive of the DFSA on 1 December 2008. Prior to becoming Chief Executive, he was Commissioner and Member of the Executive Board of the Autoriteit Financiële Markten (AFM), the national, integrated conduct of business financial services regulator for the Netherlands, where he was identified as one of the four leaders shaping the conscience of Dutch business. Mr Koster joined the AFM in March 2001 and in addition to his duties as a Commissioner, he chaired, from May 2006 until December 2007, CESR-Fin, the permanent working party of the Committee of European Securities Regulators that co-ordinates the endorsement and enforcement of financial reporting standards in Europe.

For the previous two years he had chaired CESRs Sub-committee on International Standards Endorsement. During his time with the AFM, he was also a Member of the IOSCO Chairs' Committee and, as Chief Executive of the DFSA, he remains actively involved in the work of IOSCO.

Mr Koster previously served as Executive Vice President (Corporate Internal Audit) at Royal Philips Electronics 1998 to 2001; as Managing Partner Corporate Finance, Coopers & Lybrand 1988 to 1998; and as Chief Compliance Officer and Acting Commissioner of Quotations, Amsterdam Stock Exchange 1986 to 1988; and carried out a number of senior finance functions in his earlier career, having trained as an accountant with Arthur Andersen. Mr Koster is a licensed Registered (Chartered) Accountant having qualified through the Royal Dutch Institute of Chartered Accountants in 1977 and certified as a registered auditor in 1983.

In May 2009, Mr Koster joined the Advisory Board of the Emirates Securities and Commodities Authority (SCA), the UAE's federal securities regulator, and in July 2009, he also became a Member of the Consultative Advisory Groups of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA).

In September 2010, Mr Koster won the 'CEO of the Year for Financial Services' award and was voted one of the most influential expatriates living and working in the region today.

For further information please contact:
Ms Angharad Irving - Jones
Head of Corporate Communications
Dubai Financial Services Authority
Level 13, The Gate
Dubai, U.A.E.
Tel: +971 (0)4 362 1661
Fax: +971 (0)4 362 0801
Email: airvingjones@dfsa.ae
www.dfsa.ae

© Press Release 2012