A relevant person must develop and implement anti-money laundering (AML)policies, procedures, systems, and controls to identify money laundering (ML) and financing of terrorism (TF) risk indicators and evaluate potentially suspicious transactions. This includes documenting a detailed list of red flags or potential risk indicators and educating the team to enable them to detect suspicious transactions or suspicious activities promptly.

This Practice Note will provide an overview of how a relevant person can identify a suspicious transaction. It also specifies a few indicators of suspicious transactions and activities that the relevant person should be aware of to empower easy and prompt detection of risks.

• 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: