Back to Compliance & Regulatory Compliance & Regulatory

KYC and Customer Due Diligence Documentation in the UAE

Know-your-customer (KYC) and customer due diligence (CDD) are the processes by which businesses verify who their customers are and assess the risk of dealing with them. They are central to AML/CFT compliance for covered businesses.

The requirements depend on the sector and supervisor, so this guide is a general outline.

Individuals

Typical documents include passport, Emirates ID or national ID, proof of address, and in higher-risk cases information on occupation and source of funds.

Companies and other entities

Trade licence and constitutional documents
Register of shareholders and directors
Identification of authorised signatories and beneficial owners
Evidence of authority, such as board resolutions

See beneficial ownership information.

Purpose and nature of relationship

Record why the customer wants the service and the expected activity. This allows later monitoring to detect unusual patterns.

Risk rating

Customers are rated, for example low, medium or high, based on factors such as geography, product, industry and ownership. Higher-risk customers require enhanced due diligence.

Screening

Check customers and related parties against sanctions and other relevant lists, and keep evidence of the screening.

Ongoing monitoring and updates

Review customer information periodically and when there is a trigger event. Keep documents current.

Record-keeping

Records must be kept for the required period. Organise them so they can be retrieved if a supervisor asks.

How a consultation can help

A consultation can help review your KYC templates and checklists and align them with your risk assessment. See also AML/CFT compliance. Your Legal Key is not a regulator and cannot certify compliance.

Frequently asked questions

Can I rely on a copy of a passport?

Rules vary. Verification procedures should follow your policy and the applicable requirements.

Is source of funds always required?

It depends on the customer's risk and sector requirements.

What if a customer refuses to provide documents?

Do not proceed where requirements are not met, and consider whether reporting is required under your obligations.

Related guides and services

General information only. Please read our Legal Disclaimer.