Anti-Money Laundering & Combatting Financing of Terrorism
This AML/CFT Policy outlines the guidelines and procedures that Al Shorafa Exchange follows to prevent and detect potential money laundering and other illicit financial activities.
Policy Statement
Al Shorafa Exchange aims to maintaining the highest standards of integrity and compliance with AML/CFT laws and regulations. We are dedicated to preventing our business from being used for illegal financial activities, including money laundering and terrorist financing, fraud, and other financial crime.
Al Shorafa Exchange is committed to prevent money laundering and terrorist financing in accordance with the Central Bank of the United Arab Emirate’s regulations and international best practices in Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF).
Al Shorafa Exchange aims to fully comply with the recommendations issued by the Financial Action Task Force (FATF) in preventing the use of the Exchange’s system for criminal purposes.
Al Shorafa Exchange will regularly evaluate and update the AML/CFT policies, procedures and controls on an on-going basis.
Al Shorafa Exchange adheres to the four pillars of an effective AML/CFT Compliance program including designation of a compliance officer, development of internal policies, procedures and controls, employee training and independent verification.
- We conduct thorough customer identification and due diligence procedures for all customers regardless of the amount of transaction. We obtain relevant information of every customer to ensure that the transactions they perform are in line with their profile and business activity. We ensure to identify the source of funds and purpose of transaction.
- Al Shorafa Exchange has a fully automated system to screen the names of the customers with all applicable sanctions against individual, entities and groups issued by the Central Bank of UAE (CBUAE), the United Nations Security Council, (UNSC), The Office of Foreign Assets Control (OFAC), the Office of Financing Sanctions Implementation (OFSI), the list issued by European Union (EU), and the local terrorist list issued by the UAE Supreme Council for National Security. We ascertain that all parties of every transaction conducted in the Al Shorafa Exchange are filtered through the screening system to ensure compliance with sanctions obligations, including freezing and reporting measures to relevant authorities.
- We ensure to conduct EDD on all high-risk accounts to know more about the customer and ensure that funds used in their transactions are derived from legitimate source and not related to any criminal proceeds and retain genuine documents to support the stated purpose.
- Al Shorafa Exchange ensures that ongoing transaction monitoring is conducted to detect unusual pattern and behaviour. We have implemented the three lines of defense to ensure robust transaction monitoring process.
- All employees are trained to identify and report any transactions or activities that appear to be suspicious or potentially linked to money laundering or terrorist financing. The compliance officer conducts in-depth investigation and will promptly report such activities to the Financial Intelligence Unit of the Central Bank of the UAE.
- Al Shorafa Exchange ensures to maintain accurate and up-to-date records of customer identification, due diligence, transaction data and any related AML/CFT activities for a minimum period of 5 years. These records will be securely stored and made available to regulatory authorities upon request.
- The AML/CFT Compliance Function is subjected to regular review by Internal and External Auditor, and the Central Bank of the UAE to ensure that the compliance program fully adheres to regulatory requirement.
- All employees are provided with regular training on AML/CFT policies and procedures to enhance their awareness and understanding of ML/FT risks and detection techniques. New employees are provided AML/CFT Training within 30 days from joining and annually thereafter.