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SCA's Groundbreaking Anti-Money Laundering Provisions: Unveiling Key Amendments and Impacts

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Pavitra Shetty

Published on January 10, 2024, 11:49:47


Anti-Money Laundering Provisions, Anti-Money Laundering Provisions amendments, Anti-Money Laundering Provisions and impact, SCA's Groundbreaking Anti-Money Laundering Provisions: Unveiling Key Amendments and Impacts, latest news, legal news

In a significant move to bolster its regulatory framework, the United Arab Emirates Securities & Commodities Authority (SCA) recently unveiled a groundbreaking amendment to its Rulebook of the Rules of Financial Activities and the Status Rectification Mechanisms. The amendment, yet to be published in the Official Gazette but slated to become effective upon publication, marks a pivotal moment in the SCA's commitment to combating money laundering, terrorism financing, and the support of unlawful organizations.

Key Amendments:

The Rulebook Amendment introduces a fifth section dedicated exclusively to anti-money laundering measures, as well as efforts to combat the financing of terrorism and support unlawful organizations. Before this development, SCA-regulated entities primarily relied on the UAE AML Federal Law and the AML Implementing Regulation for guidance on anti-money laundering and combating terrorism financing or support to unlawful organizations. The anticipation for more specific AML rules aligned with SCA-regulated activities has now materialized, signifying a more tailored approach to regulation.

Entities Affected:

The Rulebook Amendment applies to entities currently under SCA regulatory supervision or those that would be subject to it in the future. As a result, SCA-regulated entities are urged to carefully review the Rulebook Amendment to ensure seamless compliance with the new provisions.

Direct Impacts:

The Rulebook Amendment carries direct implications for SCA-licensed entities and those with ongoing licensing applications:

(a) SCA-Licensed Entities: These entities must conduct a thorough review of their internal anti-money laundering (AML) and compliance policies. Any necessary amendments must be made to align with the newly introduced provisions, ensuring comprehensive compliance with the Rulebook Amendment.

(b) Entities with Ongoing Licensing Applications: For entities currently in the licensing application process with the SCA, their applications and accompanying documents will be scrutinized to ascertain compliance with the Rulebook Amendment. Should internal policies require adjustments, the SCA will notify the entities, underlining the importance of alignment with the revised regulations.

The SCA's Rulebook Amendment represents a significant stride towards reinforcing the UAE's regulatory landscape concerning anti-money laundering, terrorism financing, and support to unlawful organizations. SCA-regulated entities are encouraged to proactively adapt to these changes, ensuring that their internal policies and practices align seamlessly with the new provisions. This strategic move by the SCA underlines the commitment to creating a robust and dynamic regulatory environment, safeguarding the integrity of financial activities within the United Arab Emirates.


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