A relevant person should develop an anti-money laundering (AML) framework related to implementing an independent AML audit function to periodically review the effectiveness of their AML/CFT policies and procedures at regular intervals.

This Practice Note specifies AML audit requirements, who can be appointed as an independent AML auditor and the scope of audit functions to review the relevant person’s AML compliance effectively.

• AML: Anti-money laundering.

• Authorised person: Authorised firm or an authorised market institution.

• Authorised firm: An authorised person who holds a licence to carry on one or more financial services in or from the DIFC and is not an authorised market institution.

• Authorised market institution: An authorised person operating an exchange, a clearing house or an alternative trading system.

• Beneficial owner: A beneficial owner includes the following:

  • In relation to a customer, means a natural person who ultimately owns or controls the customer or a natural person on whose behalf a transaction is conducted, or a business relationship is established.

  • In relation to a body corporate:

    • The natural persons who ultimately have a controlling ownership interest in the body corporate, whether legal or beneficial, direct or indirect.