The UAE’s ministry of economy has directed brokers and real estate agents, dealers of precious metals and gemstones, auditors, corporate service providers, among others to register in anti-money laundering systems before March 31 to avoid hefty fines.

The ministry has asked the business community and the Designated Non-Financial Businesses and Professions (DNFBPs) to register in the Financial Intelligence Unit and the Committee for Commodities Subject to Import and Export Control system by March 31, in order to avoid penalties, including revocation of the their licenses and the closure of facilities that are found to be non-complaint.

The is part of the initiatives taken by the ministry to combat money laundering and financing of terrorism in the UAE.

Fines may range from 50,000 dirhams to 5 million dirhams based on the provisions of the law and according to the estimation of the Supreme Committee for Combating Money Laundering and Financing of Terrorism and Illegal Organizations, the ministry said in a statement.

According to the ministry website, money laundering is any financial or banking transaction aimed at concealing or changing the identity of illegally obtained funds by passing them through the financial and banking system in order to make them appear as originating from legitimate sources, and then re investing them in a legal manner contrary.

The directive listed a range of non-financial business and activities that are most exposed to money laundering risks. These have been divided according to the executive regulations of the Anti-Money Laundering Law - in line with international standards issued by the Financial Action Task Force (FATF) - into four main categories that include: brokers and real estate agents, dealers of precious metals and gemstones, auditors, corporate service providers.

(Reporting by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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