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16.7 Know Your Customer (KYC) Process

C 33/2018 STA
16.7.1The Licensed Person must carry out KYC process for its customers in order to confirm who its customers are, and to ensure that the funds involved in their transactions are originating from legitimate sources and used for legitimate purposes.
 
16.7.2The Licensed Person must apply appropriate KYC Process for its customers depending on the ML/FT risks associated with each customer or transaction.
 
16.7.3

There are three different types of KYC Processes that must be applied based on the ML/FT risk associated with a customer. These are:
 

a)Customer Identification (CID) Process;
b)Customer Due Diligence (CDD) Process; and
c)Enhanced Due Diligence (EDD) Process.
 
16.7.4The transaction thresholds at which CID, CDD, and EDD are required are specified in paragraphs 16.8.1, 16.9.1, 16.10.2, and 16.11.1 below.
 
16.7.5The Licensed Person must understand the purpose and intended nature of the business relationship and obtain, when necessary, information related to this purpose. The Licensed Person must understand the nature of the customer’s business as well as the customer’s ownership and control structure.
 
16.7.6Where the Licensed Person is unable to carry out CID/CDD/EDD in accordance with the requirements of this Standards and UAE laws and regulations, the Licensed Person must not onboard the customer, must immediately terminate any relationship with the customer, must not execute any transaction, and should consider filing a STR, SAR or other reports with the FIU.
 

 

Customer TypeCustomer ActivityValue of TransactionPreventive Measure RequiredParagraph
Natural PersonsCurrency ExchangeEqual to or greater than AED 3,500 and less than AED 35,000CID16.8
Equal to or greater than AED 35,000 and less than AED 55,000 within a 90-day periodCID and 
CDD		16.8
16.9
Equal to or greater than AED 55,000 within a 90-day periodCID,
CDD, and
EDD		16.8
16.9
16.10
Natural PersonsMoney TransferAny value less than AED 55,000CID and
CDD		16.8
16.9
  Equal to or greater than AED 55,000 within a 45-day periodCID,
CDD, and
EDD		16.8
16.9
16.10
All Legal Persons or ArrangementsAny ActivityAny ValueCDD and
EDD		16.11
Counterparty RelationshipsAny ActivityAny ValueCDD and
EDD		16.11.8 to
16.11.12
16.11.2
PEPsAny ActivityAny ValueCID,
CDD, and
EDD		16.13
DNFBPs/DPMSAny ActivityAny ValueCID (if the customer is a natural person), CDD, and
EDD		16.14/16.15
High-Risk Natural PersonsAny ActivityAny ValueCID,
CDD, and
EDD		16.16

16.8,
16.9
16.10
High-Risk circumstancesAny ActivityAny ValueCID (if the customer is a natural person), CDD, and
EDD		16.16

16.8,
16.9
16.10/11
Third Party TransactionsAny ActivityAny ValueCID (if the customer is a natural person), CDD and
EDD		16.20

16.8,
16.9
16.10/11