| 16.16.1 | The Licensed Person must be able to demonstrate to the Central Bank Examiners that the KYC Process that has been applied is appropriate in view of its risks related to the money laundering, terrorist financing or related financial crimes.
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| 16.16.2 | The Licensed Person must comply with the instructions and conditions that are stated in the Letter of No Objection issued by the Banking Supervision Department for special products or services.
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| 16.16.3 | The Licensed Person must apply the CID process in accordance with Paragraph 16.8 of this Chapter for a natural person who repeatedly exchanges foreign currency (for example, once in a week) of value below AED 3,500 per transaction;
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| 16.16.4 | The Licensed Person may accept a Seaman’s Pass/ID in order to complete the KYC Process, instead of acceptable IDs listed under Paragraph 16.8.3 of this Chapter, from natural persons who carry out the following transactions:
| a) | Foreign currency exchange transactions of aggregate value up to AED 34,999.75 per week; and | | b) | Money transfer transactions of aggregate value up to AED 27,000 per week.
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| 16.16.5 | The Licensed Person, while accepting transactions under Paragraph 16.16.4 of this Chapter, must apply the CID process in accordance with Paragraph 16.8 of this Chapter for foreign currency exchange transactions and the CDD process in accordance with Paragraph 16.9 of this Chapter for money transfer transactions (except Paragraph 16.8.3 of this Chapter) at a minimum;
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| 16.16.6 | The Licensed Person must carry out the CDD process for every pre-paid card customer (for legal person or arrangement prepaid card customers, CDD and EDD) in addition to introducing appropriate velocity controls to monitor the activity of the customer based on the number of cards purchased (whether non-reloadable or reloadable) or number of times reloaded (where it is a reloadable card). These transactions must be closely monitored by the Compliance Officer. The systems must have the capability to support monitoring of such transactions and must generate necessary exception reports and alerts.
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| 16.16.7 | The customer using automated machines (i.e. Kiosks) for executing transactions must visit a branch to complete CID or CID/EDD as appropriate and have the UIN issued by the Licensed Person. In such cases, the Licensed Person must ensure that the customer is only be permitted to add, modify or disable beneficiary details via kiosks upon authentication via a mobile OTP sent to the customer’s registered mobile number obtained during on-boarding as part of the KYC Process. The Licensed Person must also set a maximum limit, which shall not exceed AED 3,500 per transaction for money transfers via such machines. In any case, the total value of money transfers by a customer via such machines shall not exceed AED 10,000 per month. All such transactions must be closely monitored by the Compliance Officer. The systems must have the capability to support monitoring of such transactions and must generate necessary exception reports and alerts.
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| 16.16.8 | The Licensed Person must implement appropriate measures/controls to ensure that the UIN issued to a customer is being used only by that customer at all times. The Licensed Person may consider the following to comply with this requirement:
| a) | Verification of the original ID as per Paragraph 16.8.3 of this Chapter prior to accepting transactions from a customer; or | | b) | Issue ID/Membership/Loyalty Cards that contain the basic customer details (such as name, date of birth, nationality, UIN etc.) including a recent photograph and such original cards must be verified prior to accepting transactions from customers; or | | c) | Introduce appropriate biometric systems.
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| 16.16.9 | Natural persons, who do not have a valid visa to stay in the UAE, must not be permitted to carry out transactions unless they are in the grace period upon cancellation or expiry of the residence permit or on amnesty.
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| 16.16.10 | The Licensed Person must apply the following KYC process for a customer who exchanges low denomination currency notes to larger ones:
| a) | CDD process, in accordance with Paragraph 16.9 of this Chapter, must be applied for a natural person when the value of such transaction is between AED 35,000 and AED 54,999.75; | | b) | EDD process, in accordance with Paragraph 16.10 of this Chapter, must be applied for a natural person when the value of such transaction is equal to or above AED 55,000; | | c) | CDD and EDD process, in accordance with Paragraph 16.11 of this Chapter, must be applied in case the customer is a legal person or legal arrangement irrespective of the value of such transaction; and | | d) | If there are any reasonable grounds to suspect ML/FT, the Licensed Person must file a STR, SAR or any other report with the FIU irrespective of the value of such transaction. Please refer to Paragraph 16.26 of this Chapter for more information on Suspicious Transaction Reporting.
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| 16.16.11 | The Licensed Person must apply the EDD process that is effective and proportionate to the ML/FT risks, including obtaining the approval of the Manager in Charge and the Compliance Officer, for establishing business relationships or one-off transactions with:
| a) | PEP (Refer to Paragraph 16.13 of this Chapter); | | b) | Customers from high-risk jurisdictions; | | c) | Unusually complex transactions or those which have no clear economic or legal purpose; and | | d) | Transactions that the Licensed Person considers as high risk.
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| 16.16.12 | The Licensed Person must conduct the EDD process for a customer, irrespective of the value of transaction, if it suspects that the customer is engaging in money laundering or terrorist financing (ML/FT). If reasonable grounds are established to suspect money laundering, terrorist financing and/or financing of illicit organizations, such transactions must be reported, without any delay, to the FIU. Please refer to paragraph 16.26 of this Chapter for further information.
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| 16.16.13 | The Licensed Person must also conduct the EDD on its existing customers, if there is:
| a) | a material change in the nature or ownership of a customer who is a legal person or legal arrangement; | | b) | doubt about the veracity or adequacy of information previously obtained in relation to the customer; or | | c) | any other reason that the Licensed Person deems appropriate.
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