DIFC firms told to do more to combat money laundering

Free zone authority issues list of recommended measures to limit risks financial crime
DIFC firms told to do more to combat money laundering
By Staff writer
Thu 19 Jan 2017 12:51 PM

The Dubai Financial Services Authority (DFSA) has urged Dubai International Financial Centre (DIFC) companies to take measures to combat financial crime, particularly money laundering.

The DFSA published a Trade Finance report, which includes a review of trade finance activities carried out in and from the DIFC.

The report concludes that, in general, trade finance is conducted satisfactorily, but highlights several opportunities for improvement in combating risks such as money laundering. The report also contains a list of recommended best practices that firms engaged in trade finance activities are encouraged to implement.

Ian Johnston, CEO of the DFSA, said: "There is an increased focus globally on trade-based money laundering risks from international groups such the Financial Action Task Force, and financial service regulators.

“Our review and the published report are further testament to the DFSA’s commitment to maintaining the highest international standards in the DIFC. Given the importance of trade to this region, regulators need to effectively oversee and supervise trade finance without hindering actual trade. We urge firms to benefit from all international guidance issued in that regard."

"The DFSA continues to work toward enhancing the quality of systems and controls of regulated firms in the DIFC. Where we detect weaknesses or failures, we will rectify them through supervisory or enforcement actions," he added.

The DFSA’s review assessed the quality of systems and controls, in particular measures to mitigate trade-based money laundering risks, at banks and other financial service providers.

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