1.3. Legal Basis
Effective from 4/7/2021This Guidance builds upon the provisions of the following laws and regulations:
| • | Decree Federal Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations (“AML-CFT Law”). | |
| • | Cabinet Decision No. (10) of 2019 concerning the Implementation Regulation of Decree Federal Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations (“AML-CFT Decision”). | |
| • | Cabinet Decision No. (74) of 2020 Regarding Terrorism Lists Regulation and Implementation of UN Security Council Resolutions on the Suppression and Combating of Terrorism, Terrorists Financing & Proliferation of Weapons of Mass Destruction, and Related Resolutions (“Cabinet Decision 74”). | |
The AML-CFT Law and the AML-CFT Decision require LFIs to promptly apply directives issued by the competent authorities of the UAE for implementing the decisions issued by the United Nations Security Council (“UNSC”) under Chapter VII of the Charter of the United Nations (“UN”). In furtherance of this requirement, the Cabinet Decision 74 sets out the legislative and regulatory framework regarding the Targeted Financial Sanctions (“TFS”), including the Local Terrorist List and the UN Consolidated List.
The Executive Office3 acts as a national lead to coordinate and liaison implementation of TFS with all the federal and local government stakeholders including financial institutions (FIs) and designated non-financial business and professions (DNFBPs) and has issued the Guidance on Targeted Financial Sanctions for FIs and DNFBPs”. The Executive office is mainly responsible for:
| • | Receiving and processing grievances against Listing in UN and Local Lists decisions; | |
| • | Receiving and processing applications to use frozen funds as per sanctions lists; | |
| • | Working closely with the Supreme Council with regards to the local Listing; | |
| • | Circulating updates to the local and UN lists to the government and private sector; and | |
| • | Coordinating and exchanging information between Government Agencies. | |
This Guidance issued by the CBUAE is supplementary to the above mentioned “Guidance on Targeted Financial Sanctions for Financial Institutions and Designated Non-financial Business and Professions” issued by the Executive Office.
3 Website: Home | Committee for goods & material subjected to import & export (uaeiec.gov.ae)