Anti-Money Laundering – Agreed Upon Procedures

CBUAE mandates Agreed Upon Procedures (AUP) for Anti-Money Laundering (AML) in exchange houses in order to ensure adherence with set laws. As stated by CBUAE Submission of External Auditor’s findings based on the Agreed-Upon Procedures on AML/CFT should be submitted on before 30th April of the year following the end of the reporting period.

AUP for AML are a set of guidelines and processes designed to assess and ensure compliance with AML regulations.

Below are the key AUPs for AML in exchange houses:

1. Customer Due Diligence (CDD): Verify the identity of customers through reliable and independent sources.
2. Transaction Monitoring: Review the effectiveness of transaction monitoring systems.
3. Recordkeeping: Confirm that the exchange house maintains accurate and up-to-date customer records.
4. Employee AML Training: Evaluate the AML training programs for employees.
5. Internal Controls: Assess the effectiveness of internal controls related to AML processes.
6. Reporting and Communication: Confirm that the exchange house has established procedures for reporting suspicious transactions to the relevant authorities.
7. Periodic Reviews: Conduct periodic reviews of AML policies and procedures to ensure they remain effective and up-to-date.
8. Third-Party Relationships: Review the due diligence process for third-party relationships, such as correspondent banks or money service businesses.

These AUP for AML in exchange houses should be tailored to the specific regulatory environment and risk profile of the institution.

MBG’s team of experts can support your organization in drafting set agreed upon procedures in order to these procedures based on the unique characteristics of the exchange house and the jurisdictions in which it operates.

MBG’s team of experts help in ensuring:

• Regulatory Compliance
• Risk Mitigation
• Enhanced Customer Due Diligence (CDD)
• Operational Efficiency
• Adaptation to Changes