1.“the Central Bank” means the Central Bank of the United Arab Emirates.
2.“the Banking Supervision Department (the BSD)” means the Banking Supervision Department at the Central Bank of the UAE.
3.“the FID” means the Financial Intelligence Department at the Central Bank of the UAE (formerly known as the Anti-Money Laundering and Suspicious Cases Unit or the AMLSCU). It is the Financial Intelligence Unit (FIU) of the UAE and the sole national centre for receiving, analyzing and disseminating suspicious transaction reports (STRs) filed by banks, exchange houses, other financial institutions and designated non-financial businesses and professions (DNFBPs) as per the Federal Law No. (9) of 2014 regarding the amendment of some Provisions of the Federal Law No. (4) of 2002 regarding Criminalization of Money Laundering and its Executive By-Law No. (38) of 2014.
4.“the Licensed Person” means any natural or juridical person authorized to conduct Exchange Business under the Regulations.
5.“License” means license issued by the Central Bank for the carrying out Exchange Business.
6.“Exchange Business”; shall mean:
i.Dealing in sale and purchase of foreign currencies and travelers cheques;
ii.Executing remittance operations in local and foreign currencies;
iii.Payment of wages through establishing a link to the operating system of “wages protection” (WPS); and
iv.Other business licensed by the Central Bank.
7.“Paid-Up Capital” means the cash paid by the Owner, Partners or Shareholders of a Licensed Person into the account of the entity, as per requirements of the Regulations.
8.“Licensed Premises” means the premises where the Licensed Person is permitted by the Central Bank to carry out Exchange Business.
9.“Instant money transfer service provider” means a money remitting institution licensed and regulated by an appropriate Regulator in its home country who will have necessary proprietary software applications and infrastructure to transfer funds instantly from an agent in one country to an agent in another country and/or domestically.
10.“Designated Remittance Intermediate Account” shall mean an account with a Bank licensed by the Central Bank of the UAE where the customers’ remittance funds are deposited temporarily prior to the execution of remittances to the foreign correspondents or remittance partners.
11.“ML/FT” means the Money Laundering or Terrorist Financing as defined in the Federal Law No (9) of 2014 regarding the amendment of some Provisions of the Federal Law number (4) of 2002 regarding Criminalization of Money Laundering.
12.“AML/CFT Program (Anti Money Laundering and Combating Financing of Terrorism Program)” means the Policies, Procedures, Systems, Controls, etc. introduced to prevent Money Laundering and Financing of Terrorism.
13.“Ultimate Beneficial Owner or the UBO” means the ‘Natural Person’ who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a juridical person. A Natural Person who owns 5% or above of the juridical person is treated as an UBO. Also be guided by the FATF paper on Transparency and Beneficial Ownership (October 2014) regarding effective control and related matters.
14.“Foreign Politically Exposed Person (FPEP)” means an individual who is or was previously entrusted with a prominent public function by a foreign country such as heads of state or government, senior politicians, senior government officials and judicial or military officials, senior executives of state owned corporations, senior officials of political parties, Head of an International Organization (HIO), and such individual’s family members or close associates.
15.“Head of an International Organization (HIO)” means individuals who are or were previously entrusted with a prominent function by an international organization such as members of senior management or individuals entrusted with equivalent functions (i.e. directors, deputy directors, members of the board or equivalent functions) and such individual’s family members and close associates.
16.“Source of funds” means how the money, involved in the transaction, was originally derived or earned. Examples of source of funds are: salary, wages, inheritance, gratuity, end of service benefits, bank loan, income from businesses, sale of property, sale of land, sale of investments, etc. For verification of the source of funds, documents include but are not limited to salary slip, labor contract, court order, bank statements, etc.
17.“Purpose of transaction” means an explanation about why a customer is conducting a transaction or the reason for which the funds will be used. Examples of purpose of transaction are: family support, education, medical, tourism, debt settlement, financial investment, direct investment, or trading etc. For verification of the purpose of transaction, documents may include any documentation proving the purpose for which the money will be used.