UAE Cracks Down on Money Laundering with Stringent Anti-Laundering Laws

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The United Arab Emirates (UAE) has taken significant steps to combat money laundering and terrorist financing, implementing a range of laws and regulations aimed at countering these financial crimes.

Strengthened Anti-Money Laundering Measures

In 2022, Federal Decree Law No. (34) was passed, regulating the legal profession and consultation in the country. This law requires lawyers to report suspicious transactions and adhere to strict anti-money laundering measures.

The UAE has also issued several Cabinet decisions and ministerial decisions aimed at combating money laundering and terrorist financing. In 2019, Executive Regulations No. (10) were introduced, providing detailed guidelines for the prevention of money laundering and terrorist financing. A year later, Cabinet Decision No. (74) established a list system for terrorist organizations and implemented Security Council resolutions to prevent terrorism.

Guidelines for Lawyers

The Ministry of Justice has issued several circulars to guide lawyers in their implementation of anti-money laundering measures. These include:

Circular No. 36, which outlines procedures for reporting clients on international or local sanctions lists
Anti-Money Laundering & Countering Terrorist Financing Guidelines, providing detailed information on the obligations of lawyers in this regard

Fines and Violations Regulations

To further enhance anti-money laundering measures, the Ministry of Justice has introduced a range of fines and violations regulations. Cabinet Resolution No. (16) of 2021 established a consolidated list of violations and administrative fines for those who fail to comply with anti-money laundering measures.

Anti-Money Laundering Department

The UAE’s Anti-Money Laundering Department was also established in 2019, with Ministerial Decision No. (532). This department is responsible for implementing anti-money laundering measures and combating terrorist financing.

Registration Requirements

Lawyers and financial institutions in the UAE are required to register with the goAML system, a reporting platform used to track suspicious transactions. The system includes a guide for designated non-financial businesses and professions, outlining their obligations under anti-money laundering laws.

The UAE is committed to sharing information on international and local sanctions lists, providing access to guidance on targeted financial sanctions and typologies on circumventing these sanctions.

Contact Information

Anyone with questions or concerns about the UAE’s anti-money laundering laws can contact the Anti-Money Laundering and Combating Terrorism Financing Department at amlctf@moj.gov.ae.