The regulatory requirement
The ADGM is the newest Financial Free Zone in the UAE and was established in 2013 with its first regulated entity being authorised in 2016. As such, this Financial Free Zone is new for all involved. CCL has offices in the ADGM and works closely with firms as well as the regulator to ensure that as the centre develops so too does its authorised firms in a compliant way. As with all Financial Free Zones in the UAE, the requirement to have a Compliance Officer and Money Laundering Reporting Officer (MLRO) is mandatory and the FSRA requires that the nominated individual is notified to the FSRA. All Compliance Officers and MLROs must be senior managers and, unless an exemption is obtained, must be ordinarily resident in the UAE.
The role of the Compliance Officer and MLRO can be combined and held by one individual, but that individual must be appropriately qualified and/or have sufficient experience and gravitas, although currently there are no mandatory qualifications. As the UAE grows as an internationally recognised financial centre, the calibre of individuals being attracted to the region and the type of training being provided to the local population means that the pool of appropriate talent is growing, but as a new Financial Free Zone it is difficult to get someone with explicit knowledge of FSRA rules and requirements.
As a new Financial Free Zone it is difficult to get someone with explicit knowledge of FSRA rules and requirements.
Depending on the scale and complexity of the organisation, the FSRA will allow you to outsource the roles of Compliance Officer/MLRO and this can either be internally within the group or to an external provider like CCL. If you are unable to outsource these functions you will be required to have your own internal Compliance Officer and MLRO. If this is the case your internal resource may benefit from expert support from a local team with in-depth knowledge of FSRA regulations, either on an ad hoc basis or on a regular basis, for instance on the job training programmes or executing the Firm’s Compliance Monitoring Programme.
Your Compliance Officer/MLRO Outsourcing and Support options
Whatever your requirements CCL is here to assist you to get it right first time. As first-class professionals with strong relationships with the regulators, you know you will be getting the best advice.
Find out more about your options:
Contact our ADGM-based outsourcing team for guidance on the most suitable option for your business.