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Showing posts with the label Central Banks

United Arab Emirates (UAE) Anti Money Laundering Compliance Requirements - Top Ten Points To Consider With Links to Relevant Websites

The United Arab Emirates (UAE) has implemented several measures to comply with anti-money laundering (AML) regulations and combat the financing of terrorism (CFT) .  1. AML Law and Regulations : The UAE has established specific laws and regulations to combat money laundering and terrorist financing. These laws define various offenses related to money laundering and prescribe penalties for non-compliance. 2. Designated Authority : The UAE has designated a competent authority responsible for overseeing AML/CFT efforts and ensuring compliance across the financial sector. The authority may vary depending on the emirate or the type of financial institution. 3. Customer Due Diligence (CDD) : UAE's AML regulations require financial institutions and designated non-financial businesses and professions ( DNFBPs ) to conduct customer due diligence before establishing a business relationship. This includes verifying the identity of customers, beneficial owners, and understanding the nature of

What I Have Learned From "The Black Swan - The Impact of The Highly Improbable" by Nassim Nicholas Taleb

Book Review by Sikander Hayat  As far as I have been able to decipher, this book is about the emergence of an event which  is  totally unforeseen, unpredictable and which cannot be modelled for by our usual  forecasting models . Black Swan by Nassim Nicholas Taleb is a great book to read despite  its length and tone which shows its anger against the current establishment in academia,  industry and just about anyone in high places. Nassim has been a quant in his previous life,  has practised financial forecasting methods in trying to choose the eventual winners and has  tried to use his practitioner's knowledge to inject life into the idea of his Black Swan thesis.  Although he has used forecasting models in his life as a trader, he is fully aware of the short  comings of these models and in fact, he makes a strong case against modelling risk with the  current tools at our disposal. These models are fine as far as life

How To Perform KYC Checks on a Central Bank? How To Onboard a Central Monetary Authority?

Central Banks are not a very difficult entity to on-board as a counter party because risk based approach will suggest that it is one of the least risky proposition if done correctly. Here are the main steps to perform counterparty check on a Central Bank: 1.        Check on Bank for International Settlements (BIS) that it listed on that website.  The name should match exactly and link should take you to your potential counter party’s website.  The website link for BIS is https://www.bis.org/ .  This is the confirmation that your counterparty is a central bank. 2.        Get the proof of existence and name. This can be achieved by using central bank’s website and Bankers Almanac. Bankers Almanac is an acceptable source for most banks. The link to their website is https://www.bankersalmanac.com/formslogin.aspx# This is not a free resource and your organization will have to pay for this website but it is very important source for banking institutions as it can con