The term Targeted Financial Sanctions means that such sanctions are against particular individuals, entities, groups, or undertakings. The purposes are:
- To deny certain individuals, groups, organizations, and entities the means to support terrorism or finance the proliferation of weapons of mass destruction.
- To ensure no funds, financial assets, or economic resources of any kind as long as they remain subject to the sanction’s measures
UAE Government Authorities Role
- Act as a focal point between all the supervisory authorities and other relevant authorities to implement TFS.
- Circulate the names of designated entities and individuals by the UN sanctions and UAE Terrorist list.
- Ensure implementation and compliance of all supervisory authorities to the UN sanctions and UAE Terrorist lists in coordination with the Supreme Council of National Security.
- Analyze private sector TFS reports and provide feedback in coordination with FIU & Supervisory Authorities.
- Increase awareness to the Government and Private sector in regards to Targeted Financial Sanctions (TFS).
- Ensure the relevant licensed (FIs & DNFBPs) have sufficient understanding of their obligation in relation to (TFS) i.e. outreach, training, online guidelines, etc.
- Conduct examination to the relevant sector (FIs & DNFBPs) and ensure compliance with UAE decisions and regulations in the field of TFS.
- Ensure relevant (FIs & DNFBPs) have proper control for implementation of TFS.
- Monitor (FIs & DNFBPs) compliance and prescribe remedial action, as well as enforce appropriate penalties.
Who is required to comply?
All Financial Institutions (FI) and Designated Non-Financial Businesses and Professions (DNFBPs) are located in the UAE.
- Real estate agency
- Dealer in precious metals and stones
- Accounting firm, audit firm, insolvency firm, or tax consulting firm;
- A law firm, notary firm, or other independent legal business;
- Company Service Provider.
- Exchange houses
- Finance companies
- Brokerage firms (Securities/Insurance)
- Insurance/reinsurance companies
- Asset/Fund managers
Non-Compliance Violating UAE Cabinet 74 of 2020 can expose the FI or DNFBP to administrative penalties and criminal prosecutions including: – Increased scrutiny of future actions from the UAE Government – Supervisory authority may determine a ban of certain individuals from employment within the relevant sectors for a period of time. – A suspension, restriction, or prohibition of activity, business, or profession causes either revocation or withdrawal of the business license. Decree
Violating UAE Cabinet 74 of 2020 can expose the FI or DNFBP to administrative penalties and criminal prosecutions including:
- Increased scrutiny of future actions from the UAE Government
- The supervisory authority may determine a ban of certain individuals from employment within the relevant sectors for a period of time.
- A suspension, restriction, or prohibition of activity, business, or profession causes either revocation or withdrawal of the business license.
Decree Federal Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations
- 60. Every natural or legal person shall immediately comply with the instructions issued by the Competent Authorities in the State concerning the implementation of the resolutions issued by UN Security Council. Supervisory measures can be applied regardless of a finding of intent