Anti-Money Laundering & Combatting Financing of Terrorism (AML&CFT) Policy

DBFS Commodities DMCC is committed to comply with all applicable laws and regulations regarding Anti-money Laundering, Combating the Financing of Terrorism and Financing of Illegal Organizations and bound to prohibit and actively prevent all sorts of financial crimes and any activity that facilitates financial crimes including but not limited to Money Laundering, Terrorist Financing, Proliferation Financing and evasion of Sanctions. We are committed to the adhere AML/CFT local laws and regulations, international laws and best practices as well as the relevant regulatory guidelines in its letter and spirit.

UAE Federal Law

  • Federal Decree-Law No. (20) of 2018 On Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations (the “AML-CFT Law” or “the Law”)
  • Federal Decree law No. (26) of 2021 To amend certain provisions of Federal Decree-law No. (20) of 2018, on anti-money laundering and combating the financing of terrorism and financing of illegal organizations

UAE Cabinet Decisions

  • Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation of Decree Law No. (20) of 2018 On Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations (the “AML-CFT Decision” or “the Cabinet Decision”).
  • Cabinet Resolution No (24) of 2022 Amending some provisions of Cabinet Resolution No (10) of 2019 on the Executive Regulations of Federal decree Law No (20) of 2018 on Combating Money Laundering and Financing of Terrorism and Illegal Organizations
  • Cabinet Decision No. (58) of 2020 Regulating the Beneficiary Owner Procedure.
  • Cabinet Decision No. (74) of 2020 Regarding Terrorism Lists Regulation and Implementation of UN Security Council Resolutions on the Suppression and Combating of Terrorism, Terrorists Financing & Proliferation of Weapons of Mass Destruction, and Related Resolutions.
  • Cabinet Resolution No 53 of 2021 Concerning the Administration Penalties
  • Cabinet Decision No (16) of 2021 regarding the Unified List of the Violations and Administrative Fines for the Said Violations of Measures to Combat Money Laundering and Terrorism Financing

Anti-Money Laundering Compliance Policy

DBFS is fully committed to comply with local laws and regulations, relevant recommendations issued by the Financial Action Task Force (FATF) and other international bodies on preventing the utilization of our products and services for criminal purposes.

DBFS has implemented comprehensive compliance policies and procedures, robust Sanction screening and AML Monitoring system to detect, prevent and report any Money Laundering and Terrorist Financing associated risks and report them to the Financial Intelligence Unit (FIU-UAE), as per the regulations. DBFS Values (Fairness, Accountability, Integrity, and Relationships of Trust) and Business Principles are fully aligned with local and international compliance standards and the company is steadfast to conduct business securely with integrity and in compliance with all applicable laws and regulations.

DBFS observe highest standards of principles in relation to Know Your Customer (KYC), Customer Due-Diligence, Enhanced Due-Diligence, Transaction Monitoring, Reporting and Record Keeping. In order to prevent our business from being used to introduce proceeds of crime into the financial system or as a means to perpetrate financial crime, we consistently update our policies, procedures and systems in line with the regulatory framework and appropriate guidelines issued by the regulatory bodies from time to time.

DBFS is also determined to continuously evaluate and update its AML policies, procedures and controls on an on-going basis through appropriate control monitoring & testing, internal and external audit program.

AML/CFT Compliance Program

DBFS has adopted and built its compliance program on the following 5 internationally known pillars.

  1. Development and implementation of Internal policies, procedures and controls
  2. Designated compliance function with a compliance officer
  3. Ongoing employee training program
  4. Independent audit function to test the overall effectiveness of the AML program
  5. Risk-based customer due diligence (CDD)

Designated Compliance Officer (CO)

DBFS appoints at all times within its employment a Compliance Officer (CO) / Money Laundering Reporting Officer (MLRO) with full responsibility for developing, implementing and maintaining the company’s AML/ CFT Compliance Program.

Know Your Customer (KYC)

DBFS follow a strict identification and verification process for all our customers as per local and international AML/CTF regulations. Customer’s /Beneficial Owner’s identity is verified using documents, data or any other identification information from reliable and independent sources and evidence of the same will be retained wherever required.

Customer Due Diligence (CDD)

Our CDD program includes the following key elements.

  • Identifying the customer and verifying the customer’s identity using reliable independent source documents, data, or information.
  • Identifying the beneficial owner and taking reasonable measures to verify the identity of the beneficial owner.
  • Understanding and, as appropriate, obtaining information on the purpose and intended nature of the business relationship.
  • Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of the relationship to ensure that the transactions being conducted are consistent with our knowledge of the customer, their business, risk profile, and, where necessary, the source of funds.

Enhance Due Diligence (EDD)

Enhanced Due Diligence calls for additional measures, above and beyond usual Customer Due Diligence, to know more about a customer and to confirm that his/her transactions and funds are legitimate and are within its means by obtaining relevant supporting documents. Enhanced CDD measures are mandatory to the extent that customer or the circumstances of the business relationship where the risk of money laundering or terrorist financing is higher and to the extent that the risks would reasonably require it.

On-going CDD/Periodic review

The customer due-diligence documents, data and information obtained on customers, and on their Beneficial Owners or beneficiaries in the case of legal persons or arrangements must be maintained up to date. As per the AML /CFT guidance, the company should update the CDD information on High-Risk Customers more systematically, and that, in the absence of the suspicion of a crime, update those of identified low-risk customers less frequently.

In order to meet this obligation, we should consider using a risk-based approach to review and update the customer due diligence records. The maximum period of time to elapse between regular due-diligence reviews/updates of customer records for Business Relationships in different risk categories are 5 years for normal /standard risk customers, 3 years for medium risk customers and an annual basis for high-risk customers

An effective risk assessment has to be dynamic and on-going. Any changes in the client’s pattern of activity must be assessed to determine whether an update of the client’s profile or risk categorization is necessary. Additionally, the Firm should periodically assess information obtained as part of its ongoing monitoring of a business relationship and consider whether this information affects the risk assessment.

Risk Based Approach

DBFS has adopted Risk Based Approach (RBA) for managing and preventing its exposure to the financial crime risks. This approach allows the company to have systems and controls that are commensurate with the specific risks of money laundering and terrorist financing faced by the company. The risk-based approach provides a more prescriptive approach in the area of AML/CFT because it is more:

  • Flexible—as money laundering and terrorist financing risks vary across jurisdictions, customers, products and delivery channels, and over time.
  • Effective—as we are better equipped than legislators to effectively assess and mitigate the particular money laundering and terrorist financing risks we face.
  • Proportionate—because a risk-based approach promotes a common sense and intelligent approach to fighting money laundering and terrorist financing as opposed to a “check-the-box” approach. It also allows us to minimize the adverse impact of anti-money laundering procedures on our low-risk customers.

Sanctions Policy and Screening

DBFS is committed to complying with the sanction’s laws and regulations of the United Nations Security Council, the European Union, the United States as well as other applicable local and international sanctions laws and regulations, subject to the primacy of local laws and regulations.

Sanctions are restrictions imposed by countries and multinational bodies like the UN and EU. They are a tool to protect national or international security and help to stop financing for crimes like terrorism, drug trafficking and illegal arms dealing.

Violation of international or economic sanctions can potentially have severe consequences for the Company, as well as for individual employees. Beside commercial and reputational loss, possible penalties for breaching sanctions may include fines, freezing of assets and/or imprisonment. The Company shall at all times, exercise due diligence and assess possible sanction risks. Due diligence measures, investigations and screening shall always be reasonable and proportionate, depending on the nature of a transaction or the activity concerned. All prospective customers are screened against the sanctions list PRIOR to the onboarding of a customer and/or facilitation of an occasional transaction. Ongoing screening is be performed daily basis and or when there is a change in customer’s circumstances or addition to the Sanctions Lists available on the Executive Office’s website and/or the UN website.

Transaction Monitoring

Transaction monitoring is the process of scanning and analyzing transactional data to identify potential money laundering and or predicate offences. We have established a program to regularly monitor transactions to proactively identify potentially suspicious activity. We conduct ongoing due diligence on the business relationship and scrutinize transactions undertaken in the course of that relationship to ensure that the transactions are consistent with our knowledge of the customer, the customer’s business and risk profile, including, where necessary, the source of funds.

Employees must be particularly vigilant in respect of transactions initiated by customers or intermediaries that appear unusual, notably in terms of the amount involved, the frequency, nature or geographical origin of such transactions, the legal and financial arrangements involved, the economic justification of such transactions and, in the case of a company, the compliance thereof with its corporate aims.

Reporting of Unusual or Suspicious Transactions

All our staff are trained and equipped to report unusual or potentially suspicious transactions to the compliance officer. If any transaction or information raises reasonable suspicions of money laundering or predicate offences, employees must immediately raise an internal suspicious transaction report. The compliance officer, conducts an in-depth investigation and takes appropriate action before reporting such transactions to the Financial Intelligence Unit (FIU).

Staff Training

A comprehensive AML, CFT and Sanctions training program is established to empower our employees at every level., which includes not only the relevant AML/CFT laws and regulations, but also our policies and procedures used to mitigate financial crime risks. Effective AML trainings help the company to develop a good AML/CTF governance at different levels within the organization. Training is one of the most important ways to stress the importance of AML/CFT efforts, as well as educating employees about what to do if they encounter potential money laundering. Training also acts as an important control in the mitigation of financial crime risks to which the company may be exposed. New employees are trained on AML policy & procedures within 30 days of joining and refresher trainings are conducted for all employees annually or more frequently based on the changes in regulatory circumstances.

Record Keeping & Confidentiality

The Company will preserve and maintain all the data and records (electronic and non-electronic) including the customer’s identification documents, related data, transaction data and any other relevant document are for a period of not less than five (5) years and sufficient backup copies thereof for the same period for protecting them from being exposed to any damage reason. The company shall always maintain the confidentiality of information provided by its customers and their transaction records.

Independent Review

Compliance & AML function is subject to reviews by Internal Audits as well as independent external audits. This ensures that the compliance program is always up-to-date and is meeting all the regulatory requirements

Anti- Bribery & Corruption Policy

It’s the Company’s policy to prevent Bribery and Corruption to ensure ethical conduct of its businesses. The Company explicitly prohibits Bribery in any form, directly or indirectly, including making, promising, offering, or authorizing a payment or a gift to an agent, business partner, government official or any other third party for the purpose of corrupting the recipient into performing an improper exercise of functions, duties or judgments and vice versa.

The Company is committed to conducting its business honestly, fairly, with no corruption or acts of bribery and with accountability. The Company realizes that acts of bribery or corruption have a negative impact on its image, brand and the sustainability of the Company. Therefore, any breach of this policy is regarded as a serious matter and will result in firm disciplinary action under the relevant rules and regulations of the country.

Gifts and Hospitality Policy

As a rule, employees should avoid giving or accepting gifts, hospitality or other benefits in connection with official duties. If this is unavoidable, employees must be extremely careful not to provide or accept Gifts and Hospitality (G&H) that might constitute a real or apparent attempt to influence decisions or actions, could cause conflict of interest. Employees should also ensure that the G&H does not violate laws and regulations and business practices and policies of the other party.

Employees must refuse gifts, entertainment or anything similar which may raise doubts about their integrity or honesty.

Employees are prohibited from offering, receiving or exchanging Gifts and Hospitality with public official, politically exposed persons (PEP), agents or persons associated with them to facilitate or expedite a routine procedure or any other advantage.

Updates, Review and Ownership

These Policies may be updated from time, and the updated version of the Policy will be immediately made available on the DBFS Website.