1. FSMR gives the Regulator a power to supervise DNFBPs' compliance with relevant Anti-Money Laundering laws in the State. FSMR also gives the Regulator a number of other powers in relation to DNFBPs, including powers of enforcement. This includes a power to obtain information and to conduct investigations into possible breaches of the FSMR. The Regulator may also impose fines for breaches of FSMR or the Rules. It may also suspend or withdraw the registration of a DNFBP in various circumstances.
2. The Regulator takes a risk-based approach to regulation of persons which it supervises. Generally, the Regulator will work with DNFBPs to identify, assess, mitigate and control relevant risks where appropriate. The Guidance & Policies Manual ("GPM") describes the Regulator's enforcement powers under FSMR and outlines its policy for using these powers.
3. Rule 15.1.1 requires a DNFBP to be registered by the Regulator to conduct its activities in the ADGM. Rule 15.2.1 sets out the criteria a DNFBP must meet to be registered.
4. A DNFBPs is defined in Rule 3.2.1 and includes the following class of persons whose business is carried out in the ADGM:
a. a real estate agency which carries out transactions with other Persons that involve the acquiring or disposing of real property;
b. a dealer in precious metals or precious stones;
c. a dealer in any saleable item of a price equal to or greater than USD15,000;
d. an accounting firm, audit firm, insolvency firm or taxation consulting firm;
e. a law firm, notary firm or other independent legal business; or
f. a Company Service Provider.
5. In determining if a Person is a DNFPB the Regulator will adopt a 'substance over form' approach. That is, it will consider what business or profession is in fact being carried on, and its main characteristics, and not just what business or profession the person purports, or is licensed, to carry on in the ADGM.
6. The Regulator considers that a "law firm, notary firm or other independent legal business, includes any business or profession that involves a legal service, including advice or services related to laws in the U.A.E. The Regulator does not consider it necessary for the purposes of the definition that the:
a. Person is licensed to provide legal services in the U.A.E; or
b. the individuals or employees providing the legal service are qualified or authorised to do so.
7. The Regulator considers that that "accounting firm, audit firm, insolvency firm or taxation consulting firm", includes forensic accounting services that use accounting skills, principles and techniques to investigate suspected illegal activity or to analyse financial information for use in legal proceedings.
|Added on (15 April, 2019).|