| “AML/CFT Program” means the policies, procedures, systems, controls, etc. introduced by a Licensed Person to prevent Money Laundering and Financing of Terrorism. |
| “AML/CFT Supervision Department” means the AML/CFT Supervision Department at the Central Bank of the UAE. |
| “Banking Supervision Department” means the Banking Supervision Department at the Central Bank of the UAE. |
| “Beneficial Owner (BO)” means the ‘Natural Person’ who ultimately owns or exercises effective control, directly or indirectly, over a customer or the natural person on whose behalf a transaction is being conducted, or the natural person who exercises effective ultimate control over a legal person or legal arrangement, as per Cabinet Decision No. (10) of 2019 concerning the Implementing Regulation of Federal Decree Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations. |
| “Central Bank” means the Central Bank of the United Arab Emirates. |
| “Exchange Business” means: |
| | | - | Dealing in sale and purchase of foreign currencies and travelers cheques; |
| | | - | Executing remittance operations in local and foreign currencies; |
| | | - | Payment of wages through establishing a link to the operating system of “wages protection system” (WPS); and |
| | | - | Other products and services approved by the Central Bank. |
| “Exchange House” means a juridical person licensed in accordance with the provisions of Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organisation of Financial Institutions and Activities to carry on money exchange activity, and conduct funds transfers within and outside the UAE, and any other businesses determined by the Central Bank. |
| “FIU” means the Financial Intelligence Unit (FIU) of the UAE. |
| “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. |
| “Legal Arrangement” means a relationship established by means of a contract between two or more parties which does not result in the creation of a legal personality. Examples include trusts or other similar arrangements. Many legal arrangements allow for ownership, control, and enjoyment of funds to be divided between at least two different persons. |
| “Legal Person” means any entities other than natural persons that can establish in their own right a permanent customer relationship with a financial institution or otherwise own property. This can include companies, bodies corporate, foundations, partnerships, or associations along with similar entities. |
| “License” means license issued by the Central Bank for carrying out Exchange Business. |
| “Licensed Person” means any Exchange House licensed by the Central Bank to carry out Exchange Business. |
| “ML/FT” means the Money Laundering or Financing of Terrorism as defined in the Federal Decree Law No (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations. |
| “Natural Person” means an individual. |
| “Politically Exposed Person” (PEP) means natural persons who are or have been entrusted with a prominent public function in the UAE or any other foreign country such as heads of states or governments, senior politicians, senior government officials, judicial or military officials, senior executive managers of state-owned corporations, and senior officials of political parties, and persons who are, or have previously been, entrusted with the management of an international organization or any prominent function within such an organization; and the definition also includes the following: |
| | | 1. | Direct family members (of the PEP who are spouses, children, spouses of children, parents) |
| | | 2. | Associates known to be close to the PEP, which include: |
| | | | | a. | Individuals having joint ownership rights in a legal person or arrangement or any other close business relationship with the PEP; |
| | | | | b. | Individuals having individual ownership rights in a legal person or arrangement established in favor of the PEP. |
| “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. |
| “Shell bank” means a bank that has no physical presence in the country in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision. |
| “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. |