Relevant persons are required to develop anti-money laundering policies and procedures outlining the circumstances to identify high-risk customers and enhanced customer due diligence measures to be implemented while dealing with such customers.

The Practice Note specifies the potential money laundering and financing of terrorism red flags or indicators, which will help a relevant person in determining whether the customer has to be classified as “high risk” and what due diligence measures should be implemented to manage and mitigate money laundering and financing of terrorism risks associated with such high-risk customers.

• 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: