Sharaf Exchange LLC is fully dedicated in preventing money laundering and terrorist financing in strict compliance with the regulations issued by the Central Bank of the United Arab Emirates. Our paramount objective is to conduct business with utmost security and integrity, adhering to all applicable laws and regulations.

To achieve this, we have implemented robust anti-money laundering (AML) and Combatting the Financing of Terrorism (CFT) compliance practices across all our branches. Leveraging cutting-edge information technology infrastructure and advanced AML solutions, we consistently maintain full compliance.

At Sharaf Exchange LLC, we are unwavering in our commitment to adhere to laws and regulations that align with the relevant recommendations issued by the Financial Action Task Force (FATF) and the Basel Statement of Principles. These guidelines aim to prevent the misuse of the banking system for criminal purposes, as set forth by the Basel Committee.

We continuously evaluate and uphold our AML&CFT policies, procedures, and controls through an ongoing internal and external audit program. Our comprehensive compliance framework revolves around the following key pillars of an effective AML program:

Know Your Customer (KYC):

Sharaf Exchange LLC maintains a robust identity verification process for all customers, strictly adhering to local and international AML/CTF regulations. Our KYC policies are integrated at all levels of the organization, emphasizing the importance of conducting Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) where necessary to detect any indications of money laundering and or terrorism financing

Customer Due Diligence (CDD):

Our CDD process involves acquiring relevant customer details to ensure that their transactions align with their personal profiles or business activities. We prioritize verifying the legitimacy of the source of funds and the purpose of the transaction.

Enhanced Due Diligence (EDD):

EDD encompasses additional measures beyond standard CDD, allowing us to gather more information about customers and their sources of funds. Through stringent verification of authentic and genuine documents, we confirm that transactions are within the means of customers, ensuring funds are legitimate and free from any association with criminal proceeds. Our risk-based approach mandates mandatory EDD for all high-risk accounts.

Sanctions Screening:

To ensure compliance with applicable sanctions against individuals and entities, Sharaf Exchange LLC employs an automated system to screen customer names against sanctions lists issued by the Central Bank of the UAE, UN Security Council (UNSC), Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, European Union (EU) list, and the local terrorist list issued by the UAE Supreme Council for National Security. Our comprehensive screening also extends to all parties involved in transactions, ensuring our fulfillment of sanctions obligations.

Transaction Monitoring:

Sharaf Exchange LLC conducts ongoing transaction monitoring to identify any unusual or potentially suspicious transactions based on customer profiles and behavior. Our front-line agents act as the first line of defense, empowered to report any suspicious behavior or transactions through internal channels. Additionally, we conduct thorough reviews of transactions as part of our second line of defense, further monitoring customer transactions and behavior.

Risk-Based Approach:

Sharaf Exchange LLC follows a Risk-Based Approach (RBA) in accordance with FATF initiatives. Due diligence is conducted based on risk levels, considering factors such as location, type of business, ownership, customer base, regulatory status, and AML controls. This approach enables us to allocate resources effectively and focus on higher-risk areas.

Reporting of Unusual or Suspicious Transactions:

Our well-trained staff members are equipped to identify and report any unusual or potentially suspicious transactions through our internal channels to the compliance officer. Following an in-depth investigation, the compliance officer takes appropriate action and reports such transactions to the Financial Intelligence Unit (FIU) at the Central Bank of the UAE.

Staff Training:

At Sharaf Exchange LLC, we strongly emphasize the empowerment of our employees at all levels. We prioritize effective AML&CFT trainings to cultivate a culture of AML/CTF governance throughout the organization. New employees receive comprehensive AML policy and procedure training within 30 days of joining Sharaf Exchange, with subsequent training sessions conducted annually to keep them updated on the latest developments.

Record Keeping & Confidentiality:

In accordance with regulatory requirements outlined by the Central Bank of the UAE, Sharaf Exchange LLC diligently maintains and retains all records, including customer identification documents, related data, transaction data, and other relevant documents, for a minimum period of five years. We consistently ensure the utmost confidentiality of customer information and transaction records.

Independent Review of the Compliance & AML Department:

The Compliance & AML function at Sharaf Exchange LLC undergoes regular reviews conducted by Internal Audit, examiners from the Central Bank of the UAE, and independent external auditors. These reviews ensure that our compliance program remains up-to-date and effectively meets all regulatory requirements.