DFSA issues hot money alert for Tunis and Algeria

Dubai Financial Services Authority (DFSA) on Monday issued an alert note to all companies and service providers based in the Dubai International Financial Centre (DIFC) to keep tab of licit and illicit funds that may flow in from Tunisia and Algeria following political and social unrests in those countries.

The alert is targeted at illegal funds that may flow out of those countries by the head of states, ruling families members and other top government officials.

A PEP is defined as an individual who is or has been entrusted with prominent public functions in a country or territory, for example, heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned co-operations, important political party officials but not middle ranking or more junior individuals in these categories. The DFSA also considered immediate family members or close associates of a PEP should be included in the definition of a PEP.

“Given these recent events, the DFSA reminds authorised firms (AFs) and ancillary service providers (ASPs) to be alert to the potential outflow of licit and illicit assets from these jurisdictions,” the statement said.

Further, the DFSA told AFs and ASPs to apply enhanced due diligence to a PEP.

DFSA also stated that to an alert the UAE Central Bank’s anti-money laundering and suspicious cases.

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