• AML/CFTR Chapter 1 AML/CFTR Chapter 1 General provisions

    • AML/CFTR Part 1.1 AML/CFTR Part 1.1 Introductory

      • AML/CFTR 1.1.1 Name of rules

        These rules are the Anti-Money Laundering and Combating the Financing of Terrorism Rules 2019 (AML/CFTR).

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.1.2 Commencement

        These rules commence on 1 February 2020.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.1.4 Application of these rules

        (1) These rules apply to firms that conduct business or activities in or from this jurisdiction.
        (2) A reference in these rules to a firm is a reference to a firm that conducts, and so far as it conducts, business or activities in or from this jurisdiction, unless these rules otherwise provide.
        (3) However, these rules do not apply to a firm to which the Anti-Money Laundering and Combating the Financing of Terrorism (General Insurance) Rules 2019 (AMLG) apply. A reference in these rules to a firm does not include such a firm.

        Note The AMLG apply to a firm that conducts only either or both of (a) general insurance business and (b) insurance mediation in relation to either or both of general insurance contracts and non-investment insurance contracts.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.1.5 Effect of definitions, notes and examples

        (1) A definition in the Glossary also applies to any instructions or document made under these rules.
        (2) A note in or to these rules is explanatory and is not part of these rules. However, examples and guidance are part of these rules.
        (3) An example is not exhaustive, and may extend, but does not limit, the meaning of these rules or the particular provision of these rules to which it relates.

        Note Under FSR, art 17 (4), guidance is indicative of the view of the Regulatory Authority at the time and in the circumstances in which it was given.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.1.6 References to particular currencies

        In these rules, the specification of an amount of money in a particular currency is also taken to specify the equivalent sum in any other currency at the relevant time.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR Part 1.2 AML/CFTR Part 1.2 Key AML/CFT principles

      • AML/CFTR 1.2.1 Principle 1 — responsibilities

        The Governing Body of a firm is responsible for approving the policies, procedures, systems and controls necessary to ensure the effective prevention of money laundering and terrorism financing. The senior management of the firm must ensure that the policies, procedures, systems and controls are implemented, and that they appropriately and adequately address the requirements of the AML/CFT Law and these rules.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.2.2 Principle 2 — risk-based approach

        A firm must adopt a risk-based approach to these rules and their requirements.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.2.3 Principle 3 — know your customer

        A firm must know each of its customers to the extent appropriate for the customer's risk profile.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.2.4 Principle 4 — effective reporting

        A firm must have effective measures in place to ensure that there is internal and external reporting whenever money laundering or terrorism financing is known or suspected.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.2.5 Principle 5 — high standard screening and appropriate training

        A firm must:

        (a) have adequate screening procedures to ensure high standards when appointing or employing officers and employees; and
        (b) have an appropriate ongoing AML/CFT training programme for its officers and employees.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.2.6 Principle 6 — evidence of compliance

        A firm must be able to provide documentary evidence of its compliance with the requirements of the AML/CFT Law and these rules.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

    • AML/CFTR Part 1.3 AML/CFTR Part 1.3 Key terms

      • AML/CFTR 1.3.1 What is a firm?

        A firm is a financial institution or a DNFBP.

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.3.2 What is a financial institution?

        (1) A financial institution is any entity that conducts, as a business, 1 or more of the following activities for or on behalf of a customer:
        (a) accepting deposits or other repayable funds from the public, including, for example, private banking;
        (b) lending (including consumer credit and mortgage credit), the purchase of debts and equity whether with or without the right to recourse, and financing commercial transactions;
        (c) financial leasing, other than financial leasing arrangements in relation to consumer products;
        (d) transferring money or value, whether in the formal sector or informal sector (such as an alternative remittance activity), but does not include the provision to a financial institution of services consisting solely of the provision of messaging or other support services for transmitting funds;
        (e) issuing or managing means of payment, including, for example, credit and debit cards, cheques, travellers' cheques, money orders, bankers' drafts and electronic money;
        (f) providing financial guarantees or commitments;
        (g) trading in:
        (i) money market instruments, including, for example, cheques, bills, certificates of deposit and derivatives;
        (ii) foreign exchange;
        (iii) exchange, interest rate and index instruments;
        (iv) transferable securities; or
        (v) commodity futures;
        (h) participating in securities issues and providing financial services related to securities issues;
        (i) undertaking individual or collective portfolio management;
        (j) safekeeping or administering cash or liquid securities on behalf of other entities;
        (k) otherwise investing, administering or managing funds on behalf of other entities;
        (l) underwriting or placing life insurance and other investment-related insurance, whether as insurer or insurance intermediary;
        (m) money or currency changing;
        (n) any other activity or transaction prescribed by a decision of the Council of Ministers under Article 2 of the Implementing Regulations of Law No. (20) of 2019 on Combatting Money Laundering and Terrorism Financing.
        (2) Despite subrule (1), every authorised firm (other than an authorised firm that is a firm within the meaning given by the Anti-Money Laundering and Combating Terrorist Financing (General Insurance) Rules 2012, rule 1.3.1) is a financial institution.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.3.3 What is a DNFBP?

        (1) A designated non-financial business or profession (or DNFBP) is any of the following:
        (a) a real estate agent, if the agent acts for clients in relation to the buying or selling of real estate (or both);
        (b) a dealer in precious metals or stones, if the dealer engages in cash transactions with customers with a value (or, for transactions that are or appear to be linked, with a total value) of at least QR 50,000;
        (c) a lawyer, notary, other independent legal professional, or accountant, whether a sole practitioner, partner or employed professional in a professional firm, if the person prepares, executes or conducts transactions for clients in relation to all or any of the following activities:
        (i) buying or selling real estate;
        (ii) managing client money, securities or other assets;
        (iii) managing bank, savings or securities accounts;
        (iv) organising contributions for the creation, operation or management of companies or other entities;
        (v) creating, operating or managing legal persons or legal arrangements;
        (vi) buying or selling business entities;
        (d) a trust and company service provider, if the provider prepares or conducts transactions for clients on a commercial basis in relation to all or any of the following activities:
        (i) acting as a formation agent of legal persons;
        (ii) acting, or arranging for another person to act, as a director or secretary of a company or a partner of a partnership, or having a similar position in relation to other legal persons;
        (iii) providing a registered office, business address or accommodation, or providing a correspondence or administration address, for a company, a partnership or any other legal person or legal arrangement;
        (iv) acting as, or arranging for another person to act as, a trustee of an express trust;
        (v) acting as, or arranging for another person to act as, a nominee shareholder for another entity;
        (e) any other business or professional entity prescribed by a decision of the Council of Ministers under Chapter 1 of the AML/CFT Law, definition of DNFBP;
        but does not include a financial institution.
        (2) A DNFBP is also any auditor, tax consultant or insolvency practitioner, whether a sole practitioner, partner or employed professional in a professional firm, if the person prepares or conducts transactions for clients in relation to all or any of the activities mentioned in subrule (1) (c) (i) to (vi), but does not include a financial institution.
        (3) Subrules (1) (c) and (2) do not apply to:
        (a) a professional employed by a business that is not a legal professional, accounting, auditing, tax consultancy or insolvency business; or
        (b) a professional employed by a government agency.
        (4) If an entity that has been granted a licence by the Qatar Financial Centre Authority (other than a financial institution) proposes to conduct any activity mentioned in subrule (1) in or from this jurisdiction, the firm is taken to be a DNFBP.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.3.4 Who is a customer?

        (1) A customer, in relation to a firm, includes any person who engages in, or who has contact with the firm with a view to engaging in, any transaction with the firm or a member of the firm's group:
        (a) on the person's own behalf; or
        (b) as agent for or on behalf of another person.
        (2) To remove any doubt, customer also includes:
        (a) any person receiving a service offered by the firm (or by a member of the firm's group) in the normal course of its business; and
        (b) a client or investor, or prospective client or investor, of the firm or a member of the firm's group.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.3.5 Who is the beneficial owner?

        (1) The beneficial owner is:
        (a) for an account — the individual who ultimately owns, or exercises effective control, over the account;
        (b) for a transaction — the individual for whom, or on whose behalf, the transaction is ultimately being, or is ultimately to be, conducted (whether by proxy, trusteeship or mandate, or by any other form of representation); or
        (c) for a legal person or legal arrangement — the individual who ultimately owns, or exercises effective control over, the person or arrangement.
        (2) Without limiting subrule (1) (a), the beneficial owner for an account includes any individual in accordance with whose instructions any of the following are accustomed to act:
        (a) the signatories of the account (or any of them);
        (b) any individual who, directly or indirectly, instructs the signatories (or any of them).
        (3) Without limiting subrule (1) (c), the beneficial owner for a corporation includes:
        (a) an individual who, directly or indirectly, owns or controls at least 20% of the shares or voting rights of the corporation; and
        (b) an individual who, directly or indirectly, otherwise exercises control over the corporation's management.
        (4) Without limiting subrule (1) (c), the beneficial owner for a legal arrangement that administers and distributes funds includes:
        (a) if the beneficiaries and their distributions have al been decided — an individual who is to receive at least 20% of the funds of the arrangement;
        (b) if the beneficiaries or their distributions have not al been decided — the class of individuals in whose main interest the arrangement is established or operated as beneficial owner; and
        (c) an individual who, directly or indirectly, exercises control over at least 20% (by value) of the property of the arrangement.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.3.6 Politically exposed persons, their family members and associates

        (1) A politically exposed person (PEP) means an individual who is, or has been, entrusted with prominent public functions. Unless the context requires otherwise, a reference to a PEP in these rules includes a family member of the PEP or a close associate of the PEP.

        Examples of persons who can be PEPs
        1 Heads of State or of government
        2 senior politicians
        3 senior government, judicial or military officials
        4 members of Parliament
        5 important political party officials
        6 senior executives of state owned companies
        7 members of senior management (directors, deputy directors and members of the board or equivalent functions) in international organisations.
        (2) A family member of a PEP means an individual related to the PEP by blood, or by marriage, up to the second degree.

        Examples of individuals related to a PEP in the first or second degree
        1 the PEP's father and mother
        2 the PEP's husband or wife
        3 the PEP's father-in-law or mother-in law
        4 the PEP's son or daughter
        5 the PEP's stepson or stepdaughter
        6 the PEP's grandfather and grandmother
        7 the PEP's brother or sister
        8 the PEP's brother-in-law or sister-in-law
        9 the PEP's grandson or granddaughter
        (3) A person is a close associate of a PEP if the person:
        (a) is in partnership with the PEP in a legal person or legal arrangement;
        (b) is associated with the PEP through a business or social relationship; or
        (c) is a beneficial owner of a legal person or legal arrangement owned, or effectively controlled, by the PEP.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)
        Amended by QFCRA RM/2020-1 (as from 15th August 2020)

      • AML/CFTR 1.3.7 What is correspondent banking?

        Correspondent banking is the provision of banking services by a bank (the correspondent) to another bank (the respondent).

        Examples of banking services that may be provided to respondent

        1 cash management (including interest-bearing accounts in different currencies)
        2 wire transfers
        3 cheque clearing
        4 payable-through accounts
        5 foreign exchange
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.3.8 What is a shell bank?

        (1) A shell bank is a bank that:
        (a) has no physical presence in the jurisdiction in which it is incorporated and licensed (however described); and
        (b) is not affiliated with a regulated financial services group that is subject to effective consolidated supervision.
        (2) For this rule, physical presence in a jurisdiction is a presence involving effective management that has the authority to make decisions, and not merely the presence of a local agent or low-level staff.
        Derived by QFCRA RM/2019-8 (as from 1st February 2020)

      • AML/CFTR 1.3.9 What is a correspondent securities relationship?

        A correspondent securities relationship is a relationship under which services in relation to securities are provided by a firm (the correspondent) to another firm (the respondent).

        Examples of services in relation to securities

        buying, selling, lending or otherwise holding securities

        Derived by QFCRA RM/2019-8 (as from 1st February 2020)