1. LFIs' Responsibilities Related to AML / Fraud

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Prevention

LFIs and TPPs must follow rigorous procedures to detect, prevent, and their established protocols to manage AML / fraud effectively

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fraud for Open Finance transactions.

• LFIs should manage AML and fraud for Open Finance initiated transactions in the same manner as they do for other transactions

• LFIs should develop real-time fraud / AML capabilities for all transactions, if they don’t have them, including those initiated by TPPs

• There is no need to develop additional Open Finance-specific procedures

• LFIs should seek to utilize and analyze risk indicators provided by TPPs

1.1 AML / Fraud Monitoring and Prevention

Including:

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• Monitoring transactions for risk indicators

• Utilizing risk indicators

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• from TPPs

• Educating customers on fraud prevention

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1.2 AML / Fraud Detection Process

Including:

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• Identifying suspicious transactions

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• Verifying activities

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• , including step up authentication

• Collecting supporting documentation

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1.3 AML / Fraud Response

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Includes freezing transactions, conducting investigations, resolving issues, and reporting to authorities

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Liability for Fraud

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Addresses determining liability according to standards and ensuring proper record retention

2. AML / Fraud Monitoring and Prevention

2.1 Monitoring and Prevention

Monitoring Transactions for Risk Indicators

• LFIs should continuously monitor transactions for potential AML / fraud indicators

• Conduct standard screening for payments, including assessing risk based on the provided transaction data, OF Risk Data Block, customer behavior, and device information

Key Risk Indicators

• Unusual transaction patterns or amounts

• Transactions from new or unverified devices

• High-risk locations or merchants

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Including:

• Conducting investigations

• Deciding on resolution option

• Reporting to authorities

2. TPPs' Responsibilities Related to AML / Fraud Prevention

TPPs must follow robust authentication processes and report risky activities to manage AML/Fraud

2.1 Customer Authentication

• Ensure robust customer authentication in compliance with Open Finance standards for services where TPP is responsible for authentication (e.g., delegated SCA)

• Prevent Fraud, via TPP App access, by making it secure and employing MFA / biometric access

2.2 Suspicious Transactions Monitoring

• Monitor transactions and identify potential Fraud risks

• Report any suspicious activities via the AML GO portal of CBUAE

2.3 Risk Indicators

• Accurately populate risk indicators defined in the Open Finance Standards to be provided to LFIs