Regulations on Terrorists’ Lists under UAE AML Law

Regulations on Terrorists’ Lists under UAE AML Law: The procedures of implementing the Cabinet’s resolution No. (20) of 2019 concerning the regulations on Terrorists’ Lists; and implementing the Security Council’s Resolutions concerning the prevention and suppression of terrorism, terrorism financing and proliferation financing.

Definitions

Terms and expressions related to the implementation of the provisions of these procedures Cabinet Resolution, unless otherwise the context so requires:

The Competent Court

The Court specialized in State Security Crimes.

The Office

The Executive Office of the Committee for Goods and Materials Subjected to Import and Export Control.

The Council

The Supreme Council for National Security.

Supervisory Authority

The federal authorities entrusted by legislation to supervise Financial Institutions (FIs), Designated non-financial Businesses and professions (DNFBPs) and Non-Profitable Organizations (NPOs); or the competent authority to permit the operation of business or profession, unless otherwise determined by the legislation of supervisory authorities.

Sanctions Committee

Security Council’s committees established pursuant to all resolutions related to the prevention and suppression of terrorism, terrorism financing and proliferation financing.

Designated

A person or entity listed by the UN Security Council in the UN Sanctions List or by the Cabinet in the Local List, as the case may be.

Person

Natural or Legal Person

Ombudsman

an official appointed by the Secretary General of the United Nations to provide assistance to the Sanctions Committee upon the review of de-listing requests of terrorist persons and entities listed in the sanctions list.

Focal Point

A center established within the Secretariat General under Security Council’s Resolution 1730 (2006), concerned in receiving petition requests for delisting terrorist persons and entities within the country; or those holding the country’s citizenship; or those listed in the related list.

Relevant United Nations Resolutions

United Nations Resolutions 1988 (2011), 1267 (1999); 1989 (2011); 2253 (2015) and other resolutions related to ISIL (Islamic States of Iraq and the Levant “Daesh”); or Al Qaeda and all other persons and entities affiliated thereto; in addition to all then-current and future UN Resolutions related to Targeted Financial Sanctions concerning Financing Terrorism and Proliferation Financing.

Cabinet Resolutions

The Cabinet of Ministers’ Resolutions concerning the approval of the Local List.

Local List

The List issued as per a decision from the Cabinet in accordance with the provisions of Article (3) of The Cabinet Resolution No. (20) of 2019 concerning the prevention and suppression of terrorism, terrorism financing and proliferation financing.

Sanctions List

A list of which contains the names of individuals and entities involved in the financing of terrorism and proliferation financing subject to sanctions prescribed in accordance with the Sanctions Committee affiliated to the Security Council and the related information to such individuals and entities and the grounds of listing therein.

Narrative Summary

the announced part of the statement of grounds related to the listing of Person or entity in the sanctions list annexed along with the listing resolution by the Sanctions Committee.

Funds

Assets of any form; material or Immaterial, tangible, intangible, movable, immovable, electronic, digital, encrypted; including national and foreign currency, documents and deeds that prove the ownership of such assets or any related equities of any form; including electronic or digital forms, Also, economic sources that are considered assets of any type including natural resources, bank credit, cheques, purchase orders, equities, securities, deeds, drafts, and letters of credit, and any profits or incomes received or generated from such assets, in which can be used to obtain any finance, goods and services (that include, internet feed services or any related services), if it was used to support terrorism and proliferation financing.

Freeze

• Prohibition of transport, transfer, move, exchange or dispose of funds, anyhow, pursuant to decision issued by a competent authority. Including the following:
• All funds owned or controlled by the Designated, without limitation to those can be tied or used in act, plot, threat or agreement connected to terrorism, terrorism financing, or proliferation Financing.
• Funds that are wholly or jointly owned or controlled, directly or indirectly, by the Designated;
• Funds earned, derived or generated from funds owned or controlled directly or indirectly by a listed individual or entity , as well as;
• Funds of persons or entities functioning on behalf of a Designated, or functioning as per their directions.
• Without delay: taking actions including freezing funds within hours from the issuanceof listing decision by the Sanctions Committee and the Council; as the case may be, for the purposes of preventing action of such funds including smuggling and dissipation thereof.
• The Portal: Secured electronic link between the office and the security agencies and the supervisory authorities as well as any other relevant authority, for sending and receiving any information related to the implementation of this decision.

Functions and Responsibilities of the Office

The Office, and for the purposes of implementing the provisions of the Resolution, shall have the following functions:

Conduct the required procedures to implement the resolutions of the United Nations Security Council pursuant to chapter VII of UN convention on Terrorism, Terrorism Financing, Prevention, Suppression and disruption of Proliferation and it is financing and other resolutions without delay and without tipping off.

The Office will inform, via the Portal, the security agencies and the supervisory authorities as well as any other relevant authority, of any update in the Sanctions Lists once it is issued from the Sanctions Committee, and will inform, through email, the financial institutions and DNFBPs, in addition to a requirement of read receipt notification from both.

Conduct the required procedures to implement the resolutions of the Cabinet without delay and without tipping off. The Office will inform, via the Portal, the security agencies and the supervisory authorities as well as any other relevant authority, of any update in the Local Lists, and will inform, through email, the Financial Institutions and DNFBPs, in addition to a requirement of read receipt notification from both. 3. Publish on the website of the Office the name of Designated.

After the completion of funds freezing procedures, the Office shall notify either of the Designated in the sanctions list, residing in the State, about their listing, without delay.

They should as well, provide to the listed individual or entity either, the narrative summary directly, or the information concerning the reasons of the listing.

Such notification shall be through making such information available on the Office’s website along with description of the repercussions of having their names listed in the sanctions list; and the procedures followed by the Sanctions Committee in considering the requests of de-listing, including the possibility of submitting such requests to the ombudsman and the possibility of using part of the frozen funds in accordance with the provisions of Article (18) of the Cabinet’s Resolution No. (20) of 2019.

Procedure of circulating the Sanctions List and Local List

The Office will immediately receive any new or updated resolution or designation from the Permanent Mission of the State to The United Nations via a secure link, and any local listing from the Council.

The Office will circulate the UN Sanctions Lists and local lists, without delay and without tipping off, via the Portal in addition to a requirement of read receipt notification, to the security agencies, supervisory authorities, as well as any other relevant authority thereof, and as additional requirement, to financial institutions and DNFBPs, via email.

Security Agencies and Supervisory authorities of financial institutions and DNFBPs will provide any information, if available, regarding the implementation of supervised entities to the decisions and findings, to the Office within five (5) working days.

The Office shall send the information and data received to the Security Council or Sanctions Committee through the permanent mission of the country to the UN and send a copy of the same to the International Security Cooperation Department and United Nations Department in the Ministry of Foreign Affairs and International Cooperation.

The Office shall send the information and data received regarding local listings to the Council.

The same steps of the mentioned above mechanism will be implemented on updating designations, re-listing and de-listing thereof.

Procedure of De-listing from Sanctions List

Steps:

The Office shall direct the petitioner/applicant to the website of the Office in order to familiarize the petitioner/applicant of the mechanism and address of submitting requests to the ombudsman or the Focal Point, as the case may be.

The Designated, wishing to delist their names from the Sanctions List, shall submit the request/application to the Focal Point or the Ombudsman, as the case may be and in coordination with the concerned State(s).

The Office shall Receive the request of additional information from the Ombudsman or the Focal Point regarding the submitted request from any Designated for the purpose of delisting their names.

The Office, and the relevant authority assisting thereof upon the discretion of the Office, shall study the de-listing request within a timeframe determined by the Ombudsman or the Focal Point, provide its remarks and to what extent that Person or entity is entitled of being de-listed from the Sanctions list. The Office shall have the right to ask any question(s) or demand further explanation(s) to be sent to the petitioner/applicant person or entity, also, respond to any other inquiries might be raised from the Ombudsman or the Focal Point.

Submit a request for de-listing a deceased listed individual to the Sanctions Committee attaching the Death Certificate therewith, also, a request for de-listing an entity that does not exist anymore or does not perform actual activities; the Office then, shall have to take necessary measures to ensure the funds that were in the possession of such Designated are not transferred to other Designated or being distributed to them at any time. Moreover, verify that the heirs or beneficiaries of the frozen funds are not listed in the Sanctions List; and the Office shall report to the Security Council or Sanctions Committee of such.

The Office shall take necessary measures, as outlined in Clause (Third) to de-list and remove its implications, after having received response to the application/request from the Security Council or Sanctions Committee.

If the State is the one who suggested the designation in the Sanctions List, and the application/request was reported to the Ombudsman or the Focal Point, then the Office shall coordinate with the Council to study the application/request and proceed the above-mentioned procedures.

De-freeze Funds based on Similarity of Names to those listed in the Sanctions List

The De-freeze mechanism of persons or entities having similar names to listed individuals or entities in the Sanctions List shall be in accordance with the following:

Whomever had their funds frozen inside the State, shall submit a written de-freeze request to the Office attaching all supporting documents proving they are not the Designated in the Sanctions List.

The Office studies the request and [the Office] shall have the right to request any additional clarifications or documents deemed fit from the petitioner or any other entity.

The Office shall issue their decision concerning the request, whether by rejection or approval, within thirty (30) working days from receiving the request of the de-freeze.

The Office shall inform the applicant and the freezing authority of their decision, whether rejections or approval, and the freezing authority shall immediately implement the decision.

If the freezing request was rejected, or a response is not received within thirty days as of the date submitted, the applicant shall be entitled to plea/grieve before the competent court within thirty (30) working days of receiving the rejection or the period of response prescribed has expired.

The Competent Court’s order shall be final regarding the plea/grievance and it shall be in-appealable; therefore, if the plea/grievance was rejected, it is not permissible to submit a new one except after three (3) months of the date of rejection, unless there are serious grounds to plea before the expiration of three months.

Plea/Grievance to the freezing order shall not be accepted if submitted before an application was submitted to the Office and was rejected or before expiration date of the Office’s time lime to response to the request; in accordance with the provisions above.

Permitting the use of parts of the frozen funds pursuant to the Sanctions List

The Office shall approve the use of parts of the frozen funds pursuant to the Sanctions List, for each of the following:

a) To pay necessary expenses for the listed individual whose funds are frozen, i.e. amounts paid for food, rent, mortgage, medicine, medical care, insurance premium, education, legal fees and general public expenses.

b) To pay for professional fees and expenditures concerning those related to legal service fees within reasonable limits, or services fees related to maintaining and management of frozen funds.

c) Any extraordinary expenses other than those prescribed in Paragraph (A) and (B) of Clause (1).

Requests, by the Designated for the purpose of approving any of the provided for in the paragraphs of Clause (1), or any of their representatives, shall be submitted directly to the Office, attaching all supporting documents with the application.

The Office shall study the applications/requests stipulated in Clause (2), its grounds and the amounts of money required; the Office shall also have the right to reduce the amounts required or reject it based on justified grounds.

In case the application/request is related to the expenses mentioned in paragraphs (A) and (B) above in Clause (1), the Office, then, shall notify the
Sanctions Committee of their desire to approve the application/request in accordance with the provisions of Clause (2). And in case the Sanctions Committee did not express opposing decision; or in the case it did not reject the request within five (5) working days from the date it was notified; the de-freezing of the amounts approved by the Office shall pass. The freezing authority shall be notified in writing and they shall immediately have to enforce the decision. The freezing authority shall inform the Office of the procedures taken in this regard.

The Office shall, in case of paragraph (C) in Clause (1), obtain the Sanctions Committee’s written consent to the application/request.

For the purposes of Clauses (4) and (5); the Office shall notify the Designated, or their representative(s) about the approval or the rejection to the application/request in writing.

Responsibilities of FIs and DNFBPs

–  Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) shall, and for the purposes of implementing the provisions of the Cabinet’s Resolution, be committed to the following:

Once receive the email from the Office, conduct immediate search and implement the procedures of freezing in case of a match; as follow:

1. Search the customers’ database
2. Search names related to any transactions with their customers
3. Search names of potential customers
4. Search names of persons and entities where they have a direct or indirectrelation with
5. Conduct ongoing Search on the customers’ database and search, b efore such procedure shall occur, any transaction or serious relationship with any person in order to ensure the name is not listed in the Sanctions List, or de-listed, unless otherwise a prior written notification has been received by the Office not to de-list for other reason.

Immediately report to the supervisory authority, in the following cases:

1. The freezing of funds, without tipping off the Designated, and provide the Supervisory Authority with all the details concerning the frozen funds or any procedures taken pursuant to the prohibition requirements set out by the Security Council or The Council’s decisions on this matter, including any attempted transactions.
2. If one of their former or occasional customers is a Designated in the Sanctions List.
3. Not taking any procedures because of similarity of names, and this similarity was unable to be resolved using the available or accessible information.
4. De-freeze within five (5) working days as of the date of de-freezing order, and provide the Office, through the supervisory authority, with the information related to the funds, including funds position, nature, value, measures taken and any other information related to the order thereof. Additionally, they must ensure accuracy of the data provided.

The Supervisory Authority shall report to the Office, via the Portal, within five (5) working days, as of the date of being informed that the FIs and DNFBPs shall take the aforementioned procedures.

Responsibilities of the Natural and Legal Persons

Any Person shall, without delay and without prior notice, freeze funds in its possession, under its control, or management, belonging to a Designated, controlled over, in full or partially, directly or indirectly, or belonging to person functioning on behalf of the Designated, or under its direction, or owned, controlled over by that Designated, directly or indirectly. And that person shall inform the competent authorities with that regard.

And in all cases, rights of bona fide third parties shall be taken into account upon the implementation of any of the freezing procedures.

Any Person shall be prohibited from making funds, in their possession, under their control or management, financial services, or other forms, directly or indirectly, available to the Designated or to their benefit unless by permission from the Office and after coordination with the Council or the relevant Sanctions Committee or in accordance with the Cabinet Resolutions or the relevant Security Council’s resolutions and as the case may be.

Administrative Measures

The Office publishes on their website procedures to submit de-listing requests to the Security Council in the case of designated persons or entities that, in the view of the country, do not, or no longer, meet the criteria for designation. The procedures include the following:

1. Direct the Designated as per Security Council Resolutions, to submit a plea/petition request to the Ombudsman or the Focal Point directly, upon their desire of being de-listed, as the case may be.
2. Procedures of de-freezing funds related to similar names of those Designated.
3. Cases of exemption from freezing measures.
4. Mechanisms on informing the FIs and DNFBPs regarding cases of de-listing or de-
5. The application of a Freezing Order, pursuant to Security Council’s resolution 1718 (2006) and 2231 (2015) does not prevent the addition of any payables, from contracts, agreements or liabilities previously made, to the frozen accounts, before the date of freezing such accounts under the provision of the procedures herein, provided that these payables are frozen and reported to the Office.

Freezing Order, pursuant to Security Council’s resolutions 1737 (2006) and extended in accordance with Resolution 2231 (2015) made under Resolution 2231 (2015), does not prevent the Designated from being entitled to any payables as per contract made before the date of designation in the Sanctions List; in accordance with the following terms:

a) If the Office decided that the contract is not linked to any articles, tools, equipment, goods, technologies, assistance, training, financial aid, investment, brokerage or any prohibited services set out in the Security Council’s resolution 2231 (2015) and any subsequent resolution thereafter.

b) If the Office decided that the installment is not received, directly or indirectly, by any Designated in accordance with the Security Council resolution 2231 (2015).

c) Having the Office submit a prior notice to the Security Council requesting paying or receiving such installments, or, if required, declaring the de-freezing of funds for the purpose of this entitlement, within Ten (10) Working Days before the so declaration.