2.1. Application

(a)The AML Rules apply to:

1. (i)every Relevant Person in respect of all its AFSA regulated or supervised activities except an Authorised Firm licenced to operate a Representative Office; and
2. (ii)the persons specified in AML 2.2 as being responsible for a Relevant Person's compliance with these Rules.

(b) For the purposes of these Rules, a Relevant Person means:

1. (i)an Authorised Firm;
2. (ii)an Authorised Market Institution;
3. (iii)a DNFBP; or
4. (iv)a Registered Auditor.

Guidance

Only a Centre Participant may be one of the Relevant Persons above. A natural person cannot be a Centre Participant.

2.2. Responsibility for compliance with the AML Rules

1. (a) Responsibility for a Relevant Person's compliance with these Rules lies with every member of its senior management. Senior management must be fully engaged in the decision-making processes and must take ownership of the RBA set out in Chapter 4.
2. (b) In carrying out their responsibilities under these Rules every member of a Relevant Person's senior management must exercise due skill, care and diligence.
3. (c) Nothing in these Rules precludes the AFSA from imposing disciplinary sanctions, taking enforcement action and any other regulatory action deemed necessary against any person including any one or more of the following persons in respect of a contravention of any AML Rule:
4. (i) a Relevant Person;
5. (ii) members of a Relevant Person's senior management; or
6. (iii) an employee of a Relevant Person.
7. (d) In these Rules “senior management” means:
8. In relation to a Relevant Person every member of the Relevant Person’s executive management and includes:
9. (i) for a AIFC entity, every member of the Relevant Person’s Governing Body;
10. (ii) for a branch, the person or persons who control the day-to-day operations of the Relevant Person in the AIFC and would include, at a minimum, the senior executive officer or equivalent officer, such as the managing director; and
11. In relation to a customer that is a body corporate, every member of the body corporate’s Governing Body and the person or persons who control the day-to-day operations of the body corporate, including its senior executive officer, chief operating officer and chief financial officer.

2.3. AFSA supervision powers in respect of DNFBPs

The AFSA may conduct reviews of DNFBPs to perform its AML and CFT responsibilities, including as part of its RBA to supervision.

The AFSA may conduct inspections of DNFBPs as part of its RBA to supervising DNFBPs for AML and CFT.

Guidance on AML and CFT supervision

The AFSA receives an annual AML Return from a DNFBP (AML Rule 13.7) which will assist the AFSA in its supervision of DNFBPs.

Additionally, the AFSA may decide to undertake periodic reviews of one or more DNFBPs as part of its RBA to supervision. The AFSA may also provide further guidance on its approach to AML and CFT supervision of DNFBPs. 

The AFSA’s reviews may cover matters such as reviewing the firm’s systems and controls for conducting a money laundering risk assessment, CDD and complying with applicable UNSC resolutions and sanctions.

Reviews may involve interviews with senior management and a review of relevant records.