A UAE regulated entity must assess risk across several dimensions rather than looking at customers alone. The core risk factors are customer type (including beneficial ownership and whether a customer is a politically exposed person), the products and services offered, delivery and distribution channels (for example non-face-to-face onboarding), and geographic exposure to higher-risk countries and jurisdictions.
The law requires firms to identify, understand, assess, document and continuously update these risks using the risk-based approach and the multiple aspects of risk defined in the Executive Regulations, while giving due regard to the national risk assessment. The output should distinguish inherent risk from residual risk after controls, and drive where enhanced due diligence and closer monitoring are applied.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 19(1)(a) — risks must be assessed across the multiple aspects defined by the Executive Regulations.
What risk factors must a UAE entity assess in its ML/TF/PF risk assessment?
A UAE regulated entity must assess risk across several dimensions rather than looking at customers alone. The core risk factors are customer type (including beneficial ownership and whether a customer is a politically exposed person), the products and services offered, delivery and distribution channels (for example non-face-to-face onboarding), and geographic exposure to higher-risk countries and jurisdictions.
The law requires firms to identify, understand, assess, document and continuously update these risks using the risk-based approach and the multiple aspects of risk defined in the Executive Regulations, while giving due regard to the national risk assessment. The output should distinguish inherent risk from residual risk after controls, and drive where enhanced due diligence and closer monitoring are applied.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 19(1)(a) — risks must be assessed across the multiple aspects defined by the Executive Regulations.