The UAE Ministry of Economy has suspended the operations of 50 enterprises operating within the designated non-financial businesses and professions (DNFBP) sector in Q3 2023, for a period of three months. 

 

The action was taken due to these entities’ failure to register in the UAE’s Financial Information Unit’s goAML system, in line with the provisions of federal decree No 20 of 2018 and the related resolutions.

 

The Financial Information Unit receives suspicious transaction reports from DNFBP sector companies through the goAML system. It analyses transactions and activities that may amount to money-laundering, terrorism financing or any other kind of financial crime that may undermine the UAE's efforts to comply with the requirements of the Financial Action Task Force (FATF) and enhance the national economy’s reputation globally.

 

Supervising the DNFBP sector

The Ministry of Economy confirmed that the move to suspend violators’ operations forms part of its plan to oversee and supervise the country’s DNFBP sector and commercial free zones, which include intermediaries, real estate agents, traders of precious stones and metals, auditors and company service providers. 

 

These efforts are aimed at deterring violators and achieving maximum compliance, thereby enhancing the integrity of the national business environment and the confidence of investors and global financial institutions in the UAE’s economy.

 

The Ministry added that the suspension will remain in force for the violators until they fulfil their obligation to register in the goAML system. If these entities do not ensure compliance within the suspension period, stronger penalties will be imposed in accordance with the provisions of the law. 

 

The Ministry further called upon the DNFBP sector companies to comply with the relevant legislation and communicate with the Ministry's team in case they need assistance or support with regard to achieving compliance.

 

Inspection campaign

The Ministry of Economy explained that its inspection campaign continues to enhance the transparency levels within the UAE’s DNFBP sector. In this regard, the Ministry had also organised a workshop in cooperation with the country’s 11 supervisory authorities in June and July of 2023, which was attended by more than 13,000 participants from different sectors. These measures contributed to the strengthening of the country’s AML/CFT system, considerably increasing DNFBP sector’s compliance with regulatory requirements.

 

In the same context, the Ministry of Economy had imposed fines worth approximately AED76.9 million ($21 million) on 225 DNFBP companies since the beginning of 2023, till date.-- TradeArabia News Service