The Suspicious Activity Report (SAR) is a significant instrument used to combat financial crime, including both money laundering and terrorism financing. In the UAE, businesses in high-risk sectors such as banking, real estate, and accounting are compelled to report any suspicious behaviour through the goAML platform as mandated by the Financial Intelligence Unit (FIU). Vigor Accounting & Taxation works with companies to deliver this reporting of any discrepancy through SARs through a process of assessing, identifying, and reporting suspicious activities.
A SAR is an official document that businesses file with regulatory authorities when they detect any unusual or suspicious transactions that may indicate illegal financial activities. The reports contain information about the potential criminal activities the UAE's Anti-Money Laundering (AML) efforts, which are critical to ensuring that supervision is exercised, and the relevant investigations are carried out.
Supporting terrorism through the financial system.
Falsifying transactions to mislead financial institutions or other stakeholders.
Concealing the origins of illegally obtained money.
Involving illegal payments to influence business or government decisions.
In the UAE, businesses must comply with Federal Decree Law No. 20 of 2018 on AML and Counter-Terrorism Financing (CTF). SARs serve as a proactive measure in identifying and addressing potential financial crimes. Failure to file SARs or adequately report suspicious transactions can result in severe penalties, including fines, legal action, and reputational damage.
Filing a SAR involves several critical steps, and at Vigor Accounting & Taxation, we offer comprehensive support to ensure that businesses follow the correct process. Here’s an overview of the SAR filing procedure:
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In the UAE, SARs must be submitted via the goAML portal, a centralized system developed by the Financial Intelligence Unit (FIU). We assist businesses in navigating the goAML platform, ensuring that reports are filed accurately and in accordance with regulatory guidelines.
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Once suspicious activity is identified, businesses must collect the relevant information needed to file a SAR. This includes transaction details, customer information, and any supporting documentation that can provide insight into the suspicious behavior.
Certain red flags may indicate the need for filing a SAR. These include
At Vigor Accounting & Taxation, we provide comprehensive support in managing SARs, ensuring that your business meets its regulatory obligations. Our services include:
Filing SARs can be complex, especially for businesses that lack the internal resources or expertise to detect and report suspicious activities. Some common challenges include
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