Anti-money laundering legislation compliance is mandatory in the United Arab Emirates for organizations that are at risk. UAE government, with the amendment of previous anti-money laundering (AML) regulations through Federal Decree (No 20) of 2018 on Anti-Money Laundering, has taken effective steps in combating financial crime occurring in the country.
The UAE financial integrity system is based on AML and Countering the Financing of Terrorism (CFT). Together, these systems protect the UAE economy from being misused for illegal financial activities.. Companies in the trade, real estate, fintech, and virtual asset industries are increasingly being scrutinized to meet the AML and CFT requirements.
In addition to legal requirements, compliance in AML is essential in regulatory credibility, investor confidence, and business survival.
The consequences of not acting according to UAE AML laws may include:
A strong AML system ensures compliance and boosts global credibility and business resilience.
Enquire NowCentral Bank of the UAE (CBUAE)
CBUAE oversees AML compliance in banks, finance firms, exchange houses, and insurance companies. It provides directives in line with Federal Decree-Law No. 20 of 2018 and conducts audits and makes sure that every financial institution has effective risk-based compliance frameworks.
Financial Intelligence Unit (FIU)
The UAE FIU, under the CBUAE, collects and analyses Suspicious Transaction Reports (STRs). The FIU cooperates with the local authorities and the global organizations to uncover and avert the illegal financial transactions
The MoE oversees Designated Non-Financial Businesses and Professions (DNFBPs), which are real estate agents, auditors, dealers in precious metals, and company service providers. These businesses must perform AML screening, risk assessments, and report suspicious transactions to the FIU.
Dubai Financial Services Authority (DFSA) and Securities and Commodities Authority (SCA).
The SCA manages AML in capital markets, while DFSA enforces it within the Dubai International Financial Center. The two governments encourage investor confidence and make companies have open practices in securities and investment markets.
Executive Office AML and International Collaboration.
In December 2020, this office was established to coordinate national AML/CFT policies to align the UAE with the FATF (Financial Action Task Force) standards. It enhances cooperation with local bodies and foreign countries in fighting money laundering in the world.
Amendments to Federal Decree-Law No. 20 of 2018.
Money laundering offenses, compliance responsibilities, asset freezing authority and criminal liability are defined in the Federal Decree-Law No. 20 of 2018.
Decree-Law No. 26 of 2021 expanded reporting duties, clarified beneficial ownership rules, and strengthened the FIU’s authority.
Cabinet Decision No. 10 of 2019 covers CDD, beneficial ownership disclosure, and STR filing procedures..
It stipulates that the framework of the UAE follows the FATF recommendations and helps to cooperate with other countries in fighting financial crime.
Compliance Timeframe and Records-Keeping.
Customer Due Diligence (CDD) & Enhanced Due Diligence (EDD).
Companies must verify client identities and confirm legitimate ownership. EDD applies to PEPs and high-risk clients, requiring fund source checks and continuous monitoring.
Any controlled organization must report suspicious activities with the help of goAML.
Key reports include:
Customer transaction monitoring systems are advised to be automated to detect customer behavioral abnormalities.
Beneficial Owner Disclosure (UBO Register).
Every UAE company must maintain a register of individuals who ultimately own or control it. This enhances transparency and minimizes the chances of shell company abuse.
AML Policy and Training
All organizations should have an AML Compliance Officer or MLRO (Money Laundering Reporting Officer). The employees should also have periodical training on AML and businesses should also have independent audits done to assess internal controls.
Sanctions Screening & Controls.
Companies are required to screen the customers and transactions to the UAE Consolidated Sanctions List through the EOCN system, which consists of the UN, terrorism, and proliferation-related lists.
Both financial institutions and DNFBPs are covered by AML compliance:
All these industries should put in place proper AML systems, report any suspicious activity, and work hand in hand with regulating bodies.
goAML Platform (FIU UAE)
goAML is the main portal for STR, FFR, and PNMR submissions. It enables entities to file reports safely and to consult directly with the FIU.
Monitoring Tools of Transactions.
Transaction monitoring tools help institutions detect suspicious transfers or unusual customer activity.
EOCN System
Sanctions screening and compliance with international restrictions is conducted on the Executive Office for Control and Non-Proliferation (EDCN) platform.
Breach of the AML statutes attracts harsh penalties:
Following the UAE being taken off the FATF grey list in February 2024, the authorities have been increasing the enforcement and compliance checks of all sectors.
In the UAE, the AML implementation was taken to the next level of strictness in 2025:
Regulators are shifting from policy-making to enforcement, demanding real-time monitoring, transparency, and global best practices.