Anti-money laundering (AML) is gaining a significant momentum of popularity in the UAE. This has led to an increasing interest of organizations in AML training for employees, to help individuals understand the risks associated with money laundering activities. The training for anti-money laundering help employees develop necessary skillset and knowledge to prevent and report related cases.
In UAE, AML training is mandatory especially for financial institutions while the Minsitry of Economy of the UAE regulate non-financial institutions and entities. Hence, AML training for employees are provided by reliable and specialised training providers and consulting firms. The training further covers critical concepts such as AML regulatory framework at international and local level, reporting of suspicious transactions and customer due diligence (CDD).
Importance of AML training for employees
In recent years, it has become common when criminals launder money into legit and sophisticated organizations through their illicit means. If employees are not trained properly then organizations could not identify such crimes. However, a well-trained employee will act as a line of defence. This will help organizations prepare for dreadful circumstances that may arise due to money laundering. The far reaching consequences can include funding terrorism, eliminating public trust and even affecting the stability of the nation’s economy.
Training for anti-money laundering help employees as well as organizations understand the significant techniques used by criminals for illicit activities. Hence, identifying the critical red flags to take a proactive action in preventing such crimes.
Complying with regulatory requirements
The UAE has stringent laws and regulatory requirements to prevent money laundering in the UAE. As a frist step towards AML training for employees, organizations can develop detailed framework and policy that aligns with the country’s regulatons. In addition, the organizations must adopt risk assessment strategies to identify and mitigate money laundering activities.
Furthermore, organizations are required to adopt a strong customer due diligence (CDD) process. Verifying the customers’ identity, understanding their relationship with business and monitoring the unusual financial transactions can play a significant role in complying with regulatory requirements.
Followed by a diligent employee training program, organizations can ensure their workforce is aware of AML regulations in UAE. The non-compliance of AML can cause serious consequences for an organization including heavy penalties from AED 5000 to AED 50,00,000 for each violation. Additionally, the violation of AML regulations can also result in imprisonment, possibly ban on the business operating in a particular sector, termination of business license and even its closure.
Safegaurding businesses
This audit opinion is often shared by an auditor when they encounter certain issues in the financial statements. This may include certain discrepancies, not as per the present accounting standards or there are any limitations in the scope of the audit. Apart from this, auditors ensure that there is no inaccuracy in the financial statements and hence, the complete financial report cannot be invalidated.
Conclusion
UAE is gradually becoming a forerunner in combatting with money laundering related crimes. As a result, business organizations are also taking proactive measures in complying with AML regulations and contribute to the global fight against money laundering and terrorism financing.
If you’re a financial business organization and also looking for AML training for your employees, get in touch with our seasoned team of A&A Associate that provides professional accounting service in UAE. It is also recognised as the leading provider of bookkeeping Service in Dubai.
