Compliance Support Services For Difc Authorised Firms - 10 Leaves

By Author: Nitya
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DIFC is one of the world’s top eight onshore financial centers and offers a secure and efficient platform for businesses and financial institutions to reach into and out of the emerging markets of the region. The quality and independence of DIFC’s regulator, the prevailing common law framework, excellent infrastructure and tax efficiencies make it the perfect base to take advantage of the rapidly growing demand for financial and business services in the MENASA region.

DIFC fills the time-zone gap for a global financial centre between the leading financial centres of London and New York in the West and Hong Kong and Tokyo in the East.

What are compliance support services?
The Dubai Financial Services Authority (DFSA) is the regulator of DIFC financial service firms. It authorizes and supervises financial entities that conduct activities across five licensed categories.

The DFSA mandates three (and in some cases, four) mandatory appointments for all firms that wish to carry out financial services from the DIFC. The Compliance function is one of them.

Financial firms in the DIFC must appoint ...
... a Compliance Officer and a Money Laundering Reporting Officer (CO/MLRO) at the time of application to the DFSA. These functions are usually combined for smaller firms and so one individual can be proposed as the CO/MLRO. The DFSA expects an application from an individual with sufficient knowledge, experience, and seniority to perform the role effectively. Also, the Compliance Officer is expected to be resident in the UAE once licensed.

The Compliance Officer thus forms an integral part of the core team that the DFSA reviews and considers when making a authorisation decision.
The DFSA does allow outsourcing of core functions such as Compliance, MLRO and Finance. However, the DFSA does consider the type of financial service, the projected volume of business, additional endorsements (such as endorsements enabling firms to deal with Retail Clients), and the overall team composition before issuing approvals to outsource these functions.

For Category 4 firms and Restricted Fund Managers, this should normally be a straightforward process. However, the DFSA does not allow for compliance outsourcing in the case of firms that carry out financial activities with higher risks, such as asset management, brokerage or
provision of credit. An in-house resource must be hired in these cases.

However, as seen above, in-house compliance functions can have some drawbacks, and here is where compliance support services can help bridge gaps.

A compliance support service helps to support the in-house compliance officer with tools and information that he/she requires to carry out compliance responsibilities effectively.

This can mean access to tools such as World Check, LogicGate and EHS Insight, information and knowledge bases and customised alerts and explanations in case of relevant regulatory updates.

The compliance support service function can also help excute the firm’s compliance monitoring program, The support service can also cover for the compliance officer when he/she goes on leave.

How can compliance support services help my financial firm?
Here are some key areas where our support services can add value to your DIFC or ADGM authorized firm.

1. Advisory and Transformation:
a. Compliance Monitoring.
b. Financial Crime.
c. Conduct.
d. Regulatory Strategy.
e. Legal.
f. Technology and Cyber-Security.
2. Compliance Management and Testing:
a. Client Lifecycle Management.
b. E-KYC.
c. AML/transaction monitoring and alerts
d. Compliance and Controls Testing.
e. Data Protection and Privacy.
3. Regulatory Response:
a. Regulatory Outreach.
b. Regulatory Changes and Impact.

Our Services:
We provide comprehensive compliance services for regulated firms in the DIFC. Starting
from consulting on establishing in the centre, to assistance in authorisations, to assistance
in preparation of all compliance documentation, 10 Leaves helps you navigate the DFSA
Rulebook and submit an application that is comprehensive, complete and compliant.
Our services include:
Pre-authorisation
1. Reviewing the business model and advice on the applicable regulatory framework;
2. Preparation of the Regulatory Business Plan and comprehensive financial projections;
3. Preparation of all policies, processes and customised manuals required;
4. Provision of Outsourced Compliance Officer and Outsourced Finance Officer services;
5. Finalising the legal structure, including holding company setup and customisation of Memorandums; and
6. Finalisation of leased space, bank account opening and obtaining Financial Services Permissions.
7. Preparation of all compliance and legal documentation for operational purposes*

*through 10 Leaves Legability
Post-authorisation:
1. 10 Leaves Compliset* – a fully digital comprehensive library of policies and
processes relevant to your business in the DIFC.
2. Acting as the Outsourced Compliance officer.
3. Maintenance and updating of all compliance documentation, including
Compliance Manuals, Compliance Monitoring Plans and AML Manuals.
4. Compliance Support Services.
5. Regulatory filings and reporting.
6. Risk Management.
7. Business Continuity Planning and Management.
8. Ongoing documentation review – marketing material, promotional literature, online privacy and access polices and terms and conditions.
9. Ongoing compliance and AML training for employees.

*under development

Documentation that we prepare:
1. Compliance Manual.
2. AML and CTF Manual.
3. Corporate Governance Policies and Charters.
4. Operating Procedures Manual.
5. Code of Ethics.
6. Risk Management Policies and Framework.
7. Business Continuity Manual.
8. Information Technology and Cyber Security Manual.
9. Internal Risk Assessment Process (IRAP).
10.Internal Capital Adequacy Assessment Process (ICAAP).

Get in touch today! for More Information on Compliance Support Services for DIFC Authorised Firms.