Know Your Customer process under UAE AML Regulations | AML UAE

Introduction

This tutorial provides a detailed guide on the Know Your Customer (KYC) process under the UAE Anti-Money Laundering (AML) regulations. Understanding and implementing KYC is essential for organizations to comply with legal requirements and to establish secure business relationships with customers and suppliers.

Step 1: Gather Information for Natural Persons

To onboard individual customers or suppliers, collect the following information:

• Personal Details

  • Full name
  • Date of birth
  • Place of birth
  • Nationality
  • Contact information (phone and email)
  • Residential address

• Occupational Details

  • Employment status (if applicable)
  • Employer's name and contact information

• International Customers

  • Obtain the government-issued Tax Identification Number (TIN), if available.

• Transaction Purpose

  • Information regarding the reason for the transaction.

Step 2: Collect Verification Documents for Natural Persons

To verify the information provided, request the following documents:

• Identity Proof

  • Emirates ID
  • Passport
  • Driving License
  • Any government-issued document with a photograph

• Address Proof

  • Utility Bill
  • Municipal tax records
  • Bank statements
  • Property purchase or rent agreements
  • Other government-issued documents with the address
  • Ensure that address proof is not older than three months.

Step 3: Gather Information for Corporate Customers

When onboarding corporate clients, collect the following details:

• Company Information

  • Legal name of the company
  • Date and place of incorporation
  • Nature of business activities
  • Principal place of business

• Ultimate Beneficial Owners (UBOs) Details

  • Information on UBOs, authorized signatories, and senior management, including:
    • Designation of senior management
    • Percentage ownership of shareholders
    • Justification for UBO classification

• Financial Details

  • Company’s annual turnover
  • Asset size

Step 4: Collect Verification Documents for Corporate Customers

To confirm the validity of the corporate details, request the following documents:

• Identity Documents

  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Association
  • Trade License

• Address Proof

  • Utility Bill
  • Municipal Tax Records
  • Bank Statement
  • Property Purchase or Rent Agreements
  • Insurance Policy

• Additional Documents

  • Latest audited financial statement
  • Organizational chart for UBO identification
  • Register of directors and shareholders
  • Board resolution appointing authorized signatories

Step 5: Standardize the KYC Process

Implement a standardized KYC form that customers and suppliers must complete. This form should include:

• A section for all required information
• Instructions on submitting supporting documents

This standardization ensures compliance and simplifies the identification process before entering into business relationships.

Conclusion

Implementing an effective KYC process is crucial for organizations under UAE AML regulations. By following the outlined steps for gathering and verifying information for both natural and corporate persons, businesses can ensure compliance and minimize risks associated with financial transactions. Consider creating a dedicated team or utilizing software solutions to streamline the KYC process. For more detailed resources and guidelines, visit the AML UAE website or reach out to their contact information.