Cabinet Resolution No. 71 of 2024 Regulating Violations and Administrative Penalties Imposed on Violators of Measures for Confronting Money Laundering and Combating Financing of Terrorism Subject to the Control of the Ministry of Justice and Ministry of Economy

§Preamble

Cabinet Resolution No. (71) of 2024 Regulating Violations, Administrative Penalties Imposed on Violators of Measures for Confronting Money Laundering and Combating Financing of Terrorism Subject to the Control of Ministry of Justice and Ministry of Economy

The Cabinet, − Upon reviewing the Constitution; and − Federal Law No. (1) of 1972, Concerning the Competences of the Ministries and the Capacities of the Ministers, and its amendments; and − Federal Decree-Law No. (20) of 2018, On Combating Money Laundering and the Financing of Terrorism and Illegal Organisations, and its amendments thereof; and − Cabinet Resolution No. (10) of 2019, Concerning the Executive Regulation of Federal Decree-Law No. (20) of 2018 On Combating Money Laundering and the Financing of Terrorism and Illegal Organisations, and its amendments thereof; and − Cabinet Resolution No. (74) of 2020, Concerning the Terrorists Lists and Implementation of UN Security Council Resolutions relating to Preventing and Countering Financing Terrorism and Leveraging Non-Proliferation of Weapons of Mass Destruction, and the Relevant Resolutions; and − Cabinet Resolution No. (16) of 2021, Concerning the Unified List of Violations and Administrative Fines Imposed on Violators of Measures for Confronting Money Laundering and Combating the Financing of Terrorism Who are Under the Control of the Ministry of Justice and Ministry of Economy; and − Based upon the proposal submitted by the Minister of Finance and the Cabinet’s approval, Has resolved as follows:

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§Article 1 — Definitions

Definitions stipulated in the aforementioned Cabinet Resolution No. (10) of 2019 shall be applied. Otherwise, the following terms and expressions shall be accorded their designated meanings, unless the context otherwise requires:

Ministry : Ministry of Justce or Ministry of Economy, as the case may

be.

Minister : Minister of Justice or Minister of Economy, as the case may

be.

Federal Decree-Law : Federal Decree-Law No. (20) of 2018, On Combating

Money Laundering and the Financing of Terrorism and Illegal Organisations, and its amendments.

Executive : Cabinet Resolution No. (10) of 2019 Concerning the Regulations Executive Regulations of Federal Decree-Law No. (20) of 2018, On Combating Money Laundering and the Financing

of Terrorism and Illegal Organisations, and its amendments.

Designated Non- : Whoever engages in one or more of the commercial or Financial Businesses professional businesses stipulated in Article (3) of the and Professions Executive Regulations, who are Under the Ministry

oversight.

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§Article 2 — Scope of Application

Provisions of this Resolution shall apply to Designated Non-Financial Businesses and Professions upon violating any provision of the Decree-Law, the Executive Regulation or the resolutions issued for its implementation.

§Article 3 — Authority to Impose Administrative Penalties

1. The Ministry may impose one of the administrative penalties stipulated in Article (14) of the Decree-Law or impose the administrative fines according to the list attached to this Resolution, or both, upon committing any of the violations set forth in the list attached to this Resolution.

2. The Minister shall designate a competent authority within the Ministry to be responsible for imposing the administrative fines on the designated non-financial businesses and professions, the procedures and controls to impose such fines.

§Article 4 — Notification of the Administrative Penalty and Grievance Against it

1. The Ministry shall notify the violating party within the designated non-financial businesses and professions of the Ministry’s decision to impose the administrative fine thereon within twenty (20) working days as of the date of issuing the notice.

2. Any individual with a capacity or any stakeholder may grieve to the Minister or his delegate against the administrative penalty within (30) thirty working days as of the date of the notice of the penalty or the grievant knowledge, as the case may be, provided that the grievance shall be substantiated and all supporting documents are attached in accordance with the procedures applicable in the Ministry.

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3. Upon considering the grievance, the Minister or his delegate may take any of the following measures:

a. Deny the grievance and endorse the prescribed administrative penalty in case the reasons and justifications on which the decision for which the grievance is submitted are valid.

b. Amend the prescribed administrative penalty with another penalty from those stipulated in Article (14) of the Decree-Law or the unified listed attached to this Resolution, considering the violation, subject matter of the decision for which the grievance is submitted and its proportionality to the nature of the activity and volume of transactions of the facility, provided that the grievance shall not harm the aggrieved party.

c. Cancel the prescribed administrative penalty in case the violation reasons are removed or invalid.

4. The decision that is issued on the grievance shall be final, and failure to reply to the grievance within (40) forty working days as of its submission date shall be deemed a rejection of the grievance.

5. Appeal against the administrative fine decision imposed in accordance with the provisions of this Resolution shall not be accepted prior to grievance and taking a procedure with respect to such decision, or the lapse of the deadline for replying thereto.

§Article 5 — General Provisions

1. The fines imposed subject to the provisions of this Resolution shall be collected according to the mechanism prescribed by the Ministry of Finance.

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2. The Ministry may double the administrative fine value that is imposed on the Violator once the violation is repeated.

3. Imposing the administrative fine under the provisions of this Resolution shall not prevent the Ministry to impose any of the other administrative sanctions stipulated in Article (14) of the Decree-Law.

§Article 6 — Amendment of Fines

Subject to the provision of Article (14) of the Decree-Law, the Cabinet shall be competent authority to amend the value of the administrative fines set forth in the list attached thereto, whether by addition, deletion or amendment.

§Article 7 — Executive Resolutions

The Minister shall issue the resolutions necessary to apply the provisions of this Resolution.

§Article 8 — Repeals

The Cabinet Resolution No. (16) of 2021 Concerning the Unified List of Violations and Administrative Fines Imposed on Violators of Measures for Confronting Money Laundering and Combating the Financing of Terrorism Who are Under the Control of the Ministry of Justice and Ministry of Economy. Any provision that violates or contradicts the provisions of this Resolution shall be repealed.

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§Article 9 — Resolution Publication and Entry into Force

This Resolution shall be published in the Official Gazette and shall enter into force as of the day following the date of its publication.

Mohammed bin Rashid Al Maktoum Prime Minister

Issued by Us:

Date: 2/ Muharram/ 1446 A.H.

Corresponding to: 08 July 2024 AD

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The list Annexed to Cabinet Resolution No. (71) of 2024 Concerning the Unified List of Violations and Administrative Fines Imposed on Violators of Measures for Confronting Money Laundering and Combating the Financing of Terrorism Subject to the Control of the Ministry of Justice and Ministry

of Economy No. Administrative Fine Amount Legal Violation (AED) Reference

Minimum Maximum Failure to set policies, measures Article (20) of and internal controls approved 1 the Executive by the top management with 100,000 200,000 Regulation. the aim to combat committing crimes.

Internal policies and procedures are not consistent Article (20) of with the crime risks and the 2 the Executive 50,000 100,000 nature and size of the facility, or failure to update them continuously.

Failure to apply internal policies, procedures, and Article (20) of controls to a branch of the 3 the Executive 50,000 100,000 facility or a subsidiary company in which facility holds a majority stake.

4 Article (20) of Failure to include any of the 50,000 200,000

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the Executive provisions listed in Article (20) Regulation. of the Executive Regulation in

the internal policies, procedures, and controls.

Failure of the facility to take necessary measures and Article (4) Para procedures to identify, assess, (1/B) of the understand, document, and 5 50,000 500,000 Executive continuously update crime Regulation. risks in its field, as well as to provide such information upon

request.

Failure of the facility to consider all relevant risk factors, such as risks of customer. States, geographical Article (4) Para regions, products and services, (1/A) of the operations, and delivery 6 50,000 500,000 Executive channels of services and Regulation. products before determining the overall risk level and the appropriate level of risk mitigation measures that will be applied.

Article (4), Failure of the facility to 7 50,000 1,000,000 Clause (2) of the undertake the actions and

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Executive procedures necessary to Regulation. mitigate the risks identified

based on the results of the National Risk Assessment or the self-assessment process given the nature and scale of the violator’s business.

Failure of the facility to identify and assess the risks that may arise in the violator’s field of Article (23) of work when developing the 8 the Executive 50,000 500,000 services that the violator offers or when conducting new professional practices through

its facility.

Failure to undertake the necessary customer due diligence measures before establishing the business Article (6), relationship or performing a Clauses (1, 2, 3, casual transaction in favour of 9 4 and 5) of the 50,000 200,000 the customer that is equal to or Executive more than (AED 55,000), whether it is a sole or multiple transactions that seem connected, or upon making casual transactions in the form Cabinet Resolution of 2024 Regulating Violations , Administrative Penalties Imposed on Violators of Measures 9 for Confronting Money Laundering and Combating the Financing of Terrorism Subject to the Control of Ministry

of telegraph transfers equal to or more than (AED 3,500) or when suspicion exists about the crime, data validity or sufficiency to identify the identity of the customer that was previously obtained.

Failure of the facility to conduct risk management procedures Article (5), with respect to circumstances Clause (2) of the 10 where a customer would 100,000 500,000 Executive benefit from the business relationship before the verification process.

Failure to verify - using documents or data from a reliable and independent source - of the customer Article (8), identity and the real Clauses (1) and beneficiary or his deputy 11 (2) of the before or during the 50,000 200,000 Executive establishment of the business Regulation. relationship or the account opening, or before conducting a transaction for a customer with whom he has no existing business relationship.

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Failure to take necessary measures to understand the purpose, their nature, and Article (8), nature of the business Clauses (3, 4) of relationship of the customer 12 50,000 200,000 the Executive and the structure of ownership Regulation. as well as controlling the customer, or failure to obtain information related to such purpose whenever needed.

Failure to take reasonable measures to address crime risks arising from customer and the Article (9) of the business relationship to 13 Executive 50,000 200,000 identify and validate the beneficial owner of legal persons and legal arrangements.

Failure of the facility to keep Article (16) of the information obtained 14 50,000 200,000 the Decree-Law. through the execution of due diligence measures.

Article (4), Failure to take enhanced due Clause (2/B) of diligence measures to manage 15 100,000 500,000 the Executive high-risk when identified.

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Failure to apply enhanced due

diligence measures proportionate to the level of risk arising from business Article (22), relationships or transactions Clause (1) of the with natural or legal person 16 100,000 500,000 Executive from the States designated by Regulation. the committee as high-risk or with weak or deficient anti- money laundering and combating terrorism financing systems.

Failure to apply countermeasures or other measures required by the Article (22), supervisory authorities on their Clause (2) of the own or as specified by the 17 100,000 500,000 Executive committee with respect to Regulation. high-risk States or those with weak or deficient anti-money laundering and combating terrorism financing systems.

Failure of the facility to set

§Article 15 — of systems or take appropriate

18 the Executive measures to manage risks or 50,000 200,000 Regulation. determine whether the customer or the beneficial Cabinet Resolution of 2024 Regulating Violations , Administrative Penalties Imposed on Violators of Measures 12 for Confronting Money Laundering and Combating the Financing of Terrorism Subject to the Control of Ministry

owner is foreign or citizen, a politically exposed person or an individual who has previously held a prominent position in an international

organization.

Failure of the facility to conduct ongoing auditing and monitoring of the continuing business relationship to ensure that documents, data, or Article (7) of the information obtained under 19 Executive customer due diligence 50,000 500,000 Regulation. measures are up-to-date and relevant. This occurs through reviewing the registers and books, especially the registers and books of high-risk customer categories.

Failure to abide by measures Article (19) of and procedures when relying 20 the Executive on a third party to conduct 50,000 200,000 Regulation customer due diligence measures.

§Article 16 — of Failure of the facility to develop

21 50,000 500,000 the Executive indicators to detect potential

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Regulation. criminal activity to report

suspicious transactions and to continuously update such indicators according to the development and diversification of methods to commit such suspicious transactions, while complying with instructions issued by supervisory authorities or the Unit in this respect.

Failure of the facility to promptly submit reports of suspicious transactions and investigations to the Financial Articles (15) and Intelligence Unit upon 22 (17) of the suspicion, based on reasonable 100,000 500,000 Decree-Law. grounds or suspicion that a crime was committed, or failure to provide any additional information the Unit

requests.

§Article 17 — , Failure of the facility to register

Clause (1), and at the electronic system 23 Article (20), approved at the Financial 50,000 200,000 Clause (2) of the Information Unit.

Executive Cabinet Resolution of 2024 Regulating Violations , Administrative Penalties Imposed on Violators of Measures 14 for Confronting Money Laundering and Combating the Financing of Terrorism Subject to the Control of Ministry

§Article 21 — of Failure of the facility to appoint

the Executive a compliance officer who has 24 Regulation. the appropriate competence 50,000 200,000

and expertise to perform his

duties.

Article (21) of Failure of the facility to enable the Executive the compliance officer to 25 Regulation. perform any of the duties 50,000 500,000

stipulated in Article (21) of the Executive Regulation.

§Article 24 — , Failure of the facility to keep

Clauses (1), (3) any of the records, documents

and (4) of the and data stated in the Decree- Executive Law or the Executive Regulation. Regulation, or to organize them

in a manner that allows re- analysis and reconstruction of 26 50,000 200,000 individual transactions, data analysis, and tracing financial operations according to the specified periods, or the failure to make the same promptly available for relevant entities upon request.

27 Article (16) Para Failure to promptly apply 100,000 1,000,000

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(1/E) of the decisions issued by the Decree-Law. concerned authority in the and Article (60) State with respect to execution of the Executive of UN Security Council's Regulation. resolutions issued under

Chapter Seven of the UN Charter to prevent and suppress terrorism and its financing, prevention and suppression of mass destruction weapons proliferation and suspension and its financing and other relevant resolutions.

Article (18) of Disclosing, directly or the Executive indirectly, to the customer or Regulation. any other person(s) that they

have reported or are intending to report suspicious 28 100,000 500,000 transactions, or the information and data relevant to such transactions, or that there is an investigation

thereto.

Article (39) of Contacting the customer, 29 the Executive whether directly or indirectly, 100,000 500,000 Regulation. to inform the customer with Cabinet Resolution of 2024 Regulating Violations , Administrative Penalties Imposed on Violators of Measures 16 for Confronting Money Laundering and Combating the Financing of Terrorism Subject to the Control of Ministry

the procedures that were conducted concerning the latter without a written request from the relevant supervisory

entity.

Article (14) of Dealing with shell banks in any the Executive way, whether through opening 30 Regulation. bank accounts, or accepting 200,000 1,000,000

funds or deposits from such

banks.

Article (14) of Open or keep bank accounts the Executive under nickname, pseudonym 31 200,0000 1,000,000 Regulation. or fake name, or with numbers

other than their owners names.

Article (44) of Failure to comply with the the Executive instructions, regulations, and Regulation. forms concerning crime

combating set by supervisory authorities, or failure to respond to request for 32 50,000 1,00,000 information regarding the verification of compliance with the provisions of the Decree- Law, the Executive Regulation and the resolutions issued in implementation thereof from

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the part of the facilities under

control.

Article (21) Failure of the facility to register Clause (1) of at the website of the Executive Cabinet Office for Control and Non- Resolution No. Proliferation with the aim of

(74) of 2020. receiving notifications related 33 to the new designation, re- 50,000 1,000,000

designation as well as updating or de-listing notifications issued by the Security Council, the Sanctions Committee, or the Council of Ministers.

Article (21) Failure to constantly verify Clause (2) of databases and transactions and Cabinet compare them with the names Resolution No. on the lists issued by the 34 (74) of 2020. Security Council, the Sanctions 50,000 1,000,000

Committee or the local lists, as well as upon being informed of any changes in any of these

lists.

Article (21) Failure of the facility to freeze Clause (3) of funds under the local penalties 35 500,000 1,000,000 Cabinet list and the local lists promptly Resolution No. when any match appears and Cabinet Resolution of 2024 Regulating Violations , Administrative Penalties Imposed on Violators of Measures 18 for Confronting Money Laundering and Combating the Financing of Terrorism Subject to the Control of Ministry

(74) of 2020. without any prior warning.

Article (21) Failure of the facility to enforce Clause (4) of the decision to cancel the Cabinet freeze, in compliance with the 36 Resolution No. relevant Security Council 50,000 100,000

(74) of 2020. resolutions or Cabinet

decisions regarding the issuance of local lists.

Article (15) Failure of the facility to Clause (21) Para promptly report to the (5/1) of Cabinet Executive Office for Control 37 50,000 100,000 Resolution No. and Non-Proliferation with

(74) of 2020. respect to freezing procedures

taken.

Article (15) and Failure of the facility to Article (21) Para promptly report to the (5/B) of Cabinet Executive Office for Control Resolution No. and Non-Proliferation upon

(74) of 2020. determining any match with 38 the designated persons or 100,000 1,000,000

organizations, details of their data and the actions taken in compliance with the requirements set by the related Security Council Resolutions or Cabinet Resolution of 2024 Regulating Violations , Administrative Penalties Imposed on Violators of Measures 19 for Confronting Money Laundering and Combating the Financing of Terrorism Subject to the Control of Ministry

Cabinet decisions and the local lists, including transactions that are being attempted.

Article (21) Failure of the facility to Paragraphs (5/C promptly report to the and D) of Executive Office for Control Cabinet and Non-Proliferation if the Resolution No. facility one of its former

(74) of 2020. customers or any occasional

customer dealt with is a person 39 or organization included in the 100,000 1,000,000 Sanctions List or the local lists, or when there is suspicion that a current or former customer, or someone associated with the facility, is listed or has a direct or indirect connection with the listed person.

Article (21) Failure of the facility to promptly Paragraph (5/E) report to the Executive Office for of Cabinet Control and Non-Proliferation Resolution No. upon failure to take any action 40 50,000 1,000,000

(74) of 2020. due to similarity of names and in

case removing that similarity has failed through available or accessible information.

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Article (21) Failure of the facility to set and Clause (6) of apply internal policies, controls Cabinet and procedures pursuant to 41 100,000 1,000,000 Resolution No. provisions of the

(74) of 2020. aforementioned Cabinet

Resolution No. (74) of 2020.

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