14.2.1. Application of policies to Group entities

A Relevant Personwhich is a Centre Participant (excluding recognised or registered entities that are branches) must ensure that its policies, procedures, systems and controls required by AML 4.1.1 apply to:

1. (a) all of its branches or Subsidiaries established in a jurisdiction other than the AIFC; and
2. (b) all of its Group entities that are Centre Participants.

14.2.2. Equality of other jurisdictions

The requirement in AML 14.2.1 does not apply if the Relevant Person can satisfy the AFSA that the relevant branch, Subsidiary or Group entity is subject to regulation, including AML, by a Financial Services Regulator or other competent authority in a country with AML regulations which are equivalent to the standards set out in the FATF Recommendations and is supervised for compliance with such regulations. Where the law of another jurisdiction does not permit the implementation of policies, procedures, systems and controls consistent with those of the Relevant Person, the Relevant Person must:

1. (a) inform the AFSA in writing; and
2. (b) apply appropriate additional measures to manage the money laundering risks posed by the relevant branch or Subsidiary.

14.2.3. Communication and documentation

In relation to the Group entities referred to in AML 14.2.1, a Relevant Person must:

1. (a) communicate the policies and procedures (and RBA where relevant) which it establishes and maintains in accordance with these Rules to its Group entities, branches and Subsidiaries; and
2. (b) document the basis for its satisfaction that the requirement in AML 14.1.1(b) is met.

14.2.4. Enforcement

In relation to an Authorised Firm, if the AFSA is not satisfied in respect of AML compliance of its branches and Subsidiaries in a particular jurisdiction, it may take action, including making it a condition on the Authorised Firm’s Licence that it must not operate a branch or Subsidiary in that jurisdiction.