Chairman of the Authority's Board of Directors’ Resolution No. (21/Chairman) of 2019 Procedures of Anti-money Laundering and Combating the Financing of Terrorism and illegal Organizations

§Preamble

The SCA Board Chairman’s Decision No. (21/Chairman) of 2019 procedures of Anti-money Laundering and Combating the Financing of Terrorism

and illegal Organizations.

The Chairman of the Authority’s Board of Directors’ Decision No. (21/R.M) of 2019 concerning procedures of Anti-Money Laundering and Counter-Terrorism and Illegal Organizations Financing

Chairman of Securities and Commodities Authority Board of Directors,,, Having considered the federal law No. (4) of 2000 concerning the Emirates Securities and Commodities Authority and Market and amendments thereto; Federal Law no. (2) of 2015 concerning Commercial Companies and amendments thereto;

Federal Decree-law No. (20) of 2018 concerning Anti-Money Laundering and Counter-Terrorism and Illegal Organizations Financing;

The Cabinet Resolution No. (13) of 2000 concerning the Regulation for Functioning of the Securities and Commodities Authority and amendments thereto;

The Cabinet Resolution No. (14/8W) of 2017 concerning the Restructuring of Securities and Commodities Authority Board;

The Cabinet Resolution No. (10) of 2019 regarding the executive regulation of the Federal Decree Law No. (20) of 2018 concerning Anti-Money Laundering and Counter-Terrorism and Illegal Organizations Financing.

The Chairman of the Authority’s Board of Directors’ Decision No. (17/R) of 2010 Concerning Anti-Money Laundering and Counter-Terrorism Financing Procedures and amendments thereto;

Administrative Decision No. (46 / R.T) of 2016 concerning Regulation of Grievances filed against Decisions related to Financial Market Transactions; Based on the approval of the Authority Board of Directors at its ninth meeting of sixth session held on 30/4/2019 Has Decided:

§Article 1 — Definitions

Article 1 - Definitions

State: United Arab Emirates

Decree-Law : Federal Decree-law No. (20) of 2018 concerning Anti-Money Laundering and Counter-Terrorism and Illegal Organizations Financing. Executive regulation : The Cabinet Resolution No. (10) of 2019 regarding the executive regulation of the Federal Decree Law No. (20) of 2018 concerning Anti-Money Laundering and Counter-Terrorism and Illegal Organizations Financing.

Authority : Securities and Commodities Authority Financial Entity The entity licensed or approved by the Authority, which practices one or more of the financial activities and processes specified in Article (2) of the executive regulation in favor of or on behalf of a client.

§Article 2

The financial entity and its stakeholders shall comply with the provisions set forth in the Decree-law, executive regulation, instructions, guidelines and circulars issued by the Authority in relation to implementation of the Decree-Law and the executive regulation.

§Article 3

The Authority shall have the power to supervise and inspect, periodically or unexpectedly and without prior notice, the financial entity to ascertain their compliance with the Decree-law, executive regulation, instructions, guidelines and circulars issued by the Authority, and investigate any violation resulting from the inspection.

The Authority may request all information and documents – it deems necessary for the purpose of supervision and investigation – from the entity or its staff.

§Article 4

Without prejudice to any of the sanctions or measures contained in any other legislation, the Authority may, when breaching any of the provisions of Article (2) of this decision, enforce any of the administrative sanctions specified in the decree-law.

§Article 5

The aggrieved parties may appeal to the Authority against the decision issued in respect of the violation and in accordance with the procedures prescribed by the Authority in this regard.

§Article 6

The Authority may publish any administrative sanctions it takes in the various means of publication.

§Article 7

The Chairman of the Authority’s Board of Directors’ Decision No. (17/R) of 2010 Concerning Anti-Money Laundering and Counter-Terrorism Financing Procedures and amendments thereto shall be canceled.

§Article 8

The provisions set forth in this decision shall come into effect from its date of issue and shall be published in the Official Gazette.

Engineer / Sultan bin Saeed Al Mansouri Chairman

Issued in Abu Dhabi on: 08/05/2019

----------------------------------------------------------------------------------------------