Anti Money Laundering Laws and Regulations in UAE | UAE AML Regulations

The AML Law is the UAE’s main legislation to combat money laundering, terrorism financing, and financial crimes. It defines offenses, sets compliance requirements, and gives authorities strong powers to investigate and prosecute.A key feature is that money laundering is treated as a separate crime from the underlying (predicate) offense. That means someone can be prosecuted for both the original crime and money laundering linked to it.

UAE AML Law: Federal Decree-Law No. 20 of 2018 combats money laundering and terrorist financing, including financial institutions and DNFBPs.

 

Why Was the AML Law Introduced?

The AML Law was introduced in 2018 and is continually evolving. Its goals are:

• To strengthen the UAE’s global reputation as a safe and transparent financial hub.
• To be compliant with FATF recommendations.
• To close loopholes that criminals exploit for money laundering or terrorist financing.

For businesses, this means being proactive about anti money laundering compliance UAE.

What Are the Key AML Regulations in the UAE?

The AML Law has some of the important rules as follows:

• Definition of Predicate Offenses – Any felony or misdemeanour under UAE law, whether committed inside or outside the UAE.
• DNFBPs Regulation – Certain non-financial businesses are required to apply the same standards as banks to reduce risks.
• Funds Definition – Extends to digital and crypto assets, closing the door on online laundering loopholes.
• Controlled Delivery & Undercover Operations – Authorities may allow crimes to progress to catch full networks of offenders.
• Independent Offense – Money laundering crimes stand on their own, without needing proof of the underlying offense first.

Who Must Comply with AML Law (DNFBPs)?

The AML Law not only includes banks and financial institutions but also Designated Non-Financial Businesses and Professions (DNFBPs). These include:

• Real estate agents and brokers
• Dealers in precious metals and stones
• Auditors and accountants
• Company formation agents
• Lawyers and legal professionals in some instances

These businesses are at risk of being utilized by money launderers and therefore must have similar compliance regimes as financial institutions.

DNFBPs in UAE: Real estate agents, accountants, precious metal dealers, lawyers (in some cases), and company service providers have to comply with AML regulations.

What Is the Role of the Financial Intelligence Unit (FIU)?

The FIU is a specialized unit that receives and investigates suspicious transaction reports. It:

• Collects and analyzes financial intelligence.
• Coordinates with local authorities.
• Shares information with foreign FIUs for cross-border investigations.

This is what positions it as the cornerstone of AML enforcement in the UAE.

FIU in UAE: The Financial Intelligence Unit accepts suspicious transaction reports and cooperates with regional and international organizations to fight financial crime.

What Reporting Obligations Do Companies Have?

Companies are obligated to file suspicious transaction reports (STRs) when they detect suspicious activity. These must be filed with the FIU without delay. Failure to report, or “tipping off” a client who is under investigation, is also a criminal offense under the AML Law.

What Are the Penalties for Non-Compliance?:

Penalties under the AML Law are strict in order to ensure deterrence

• Individuals – Up to 10 years imprisonment and fines of up to AED 5 million.
• Terror financing – Up to life imprisonment and fines of up to AED 10 million.
• Companies – Fines ranging from AED 500,000 to AED 50 million, and possible dissolution.
• Failure to report – Imprisonment and/or fines ranging from AED 100,000 to AED 1 million.
• Tipping-off – At least 6 months in jail and fines up to AED 500,000.

The severity highlights the necessity of strict anti-money laundering compliance UAE.

AML Penalties UAE: Non-compliance will lead to heavy penalties (as high as AED 50M), imprisonment, or closure of business.

How Can Businesses Ensure AML Compliance?

Businesses are required to have a compliance framework that includes:

• Conducting risk assessments.
• Having Known Your Customer (KYC) procedures in place.
• Training staff from time to time.
• Filing suspicious transaction reports in a timely manner.
• Keeping records as prescribed by the FTA and Ministry of Economy.

This proactive approach avoids penalties and builds the trust of regulators.

Why Choose Farahat & Co for AML Compliance in the UAE?

At Farahat & Co, we specialize in helping businesses with compliance. Our AML services include:

• AML policy development and implementation.
• Risk assessment and gap analysis.
• Staff training programs.
• GoAML registration and reporting support.
• Compliance monitoring and support on a continuous basis.

With our help, your business can meet every anti-money laundering compliance UAE requirement with confidence.

FAQs on UAE AML Law 2025

1. What is UAE AML Law?

It is Federal Decree-Law No. 20 of 2018, as amended from time to time, to combat money laundering and terrorism financing.

2. Who needs to comply with AML requirements?

Both financial institutions and DNFBPs such as real estate agents, auditors, and dealers in precious metals.

3. Are cryptocurrencies covered under AML Law?

Yes. The term funds include electronic and digital assets.

4. What happens if a company fails to report suspicious transactions?

It may be fined up to AED 1 million and criminal liability for the personnel involved.

5. What is tipping-off under AML law?

It is when one warns a client that he is under investigation. It is sanctioned with imprisonment and fines.

6. How do companies get ready for AML inspections?

Through adequate record-keeping, effective KYC procedures, and frequent staff training.

7. Can AML sanctions lead to business closure?

Yes. Once a business is found guilty of AML offenses, the court can pronounce an order of dissolution.

8. Why hire AML compliance professionals in the UAE?

Because of the complexity of the regulations and the high cost of penalties. Professionals keep you compliant and penalty-free.

Conclusion

The UAE AML Law has transformed the manner in which businesses tackle compliance, extending beyond the banks to DNFBPs and other professions. The penalties for lack of compliance are severe, yet with the right systems and expert advice, compliance is achievable.

At Farahat & Co, we help businesses implement pragmatic anti money laundering compliance UAE systems that protect against financial crime and keep you on the right side of the regulators.

Contact our AML compliance team today and safeguard your business against risk and penalties.