AML Regulation in the UAE

UAE Regulatory Landscape

In the past years, the UAE has made significant improvements to its AML/CFT system. The UAE has demonstrated a high-level commitment to better understand and mitigate its money laundering/terrorist financing.

The Dubai Financial Services Authority (DFSA), the Abu Dhabi Financial Services Regulatory Authority (FSRA), have developed a detailed understanding of ML/TF risk.

Key Take Aways

The main risks faced by the UAE are at the moment a wide range from: terrorist financing, and a range of ML activities including professional third-party money laundering, cash-based money laundering, abuse of legal persons, trade-based money laundering and the laundering of proceeds, particularly from foreign predicate offences including fraud, tax offences and organised crime.

AML breaches & Sanctions

Under the federal AML laws, directors and managers of companies can face criminal, civil and regulatory actions, while companies can face criminal fines, and civil and regulatory actions.

General sanctions for criminal breaches of AML laws

Persons found to have committed a criminal offence under the federal and DIFC AML laws may:

1. Be fined between AED100,000 and AED50m, depending on whether an aggravating factor applies or if the offence is carried out by an individual or corporate.
2. Be imprisoned for between six months and 10 years, or even receive a life sentence, depending on any aggravating factors; and
3. Have their business licence(s) suspended or removed.

Federal AML law also allows for the confiscation of assets, travel bans and, in the case of crimes committed by a foreigner, deportation/restriction of freedom.

Alternative Articles

1. The UAE Boosts its Commitment to International Standards Against Money Laundering and Financial Crimes.
2. United Arab Emirates’ measures to combat money laundering and terrorist financing
3. Mutual-Evaluation-Report-United-Arab-Emirates-2020