Risk Assessment and Due Diligence

Overview

The DIFC encompasses and regulates financial and non-financial entities. Financial entities and other regulated entities within the DIFC are regulated by the DIFC's regulatory body, the Dubai Financial Services Authority (DFSA). The DFSA rulebook contains a number of modules which apply to specific industry based financial services companies. One of the most crucial modules which broadly apply to authorized firms and designated non-financial business or professions is the Anti-Money Laundering, Counter – Terrorist Financing and Sanctions Module (AML Module).
The AML Module governs risk assessments which includes business risk assessment and customer risk assessment as well methods on applying risk-based approaches. The AML Module further covers customer due diligence and suspicious activity reports and other general obligations for “relevant persons” as defined in the AML Module.
Regulated and non-regulated entities situated in the DIFC are still bound by the UAE federal anti-money laundering laws, such as the Federal Decree-Law No. 20/2018 on Facing Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, as well as the UAE criminal laws which includes the Federal Law No. 7/2014 on Combating Terrorism Offences.