Money Laundering Fines and Penalties in UAE

Published On: 06/17/2022

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Last Reviewed On: 10/25/2026 | Last Updated On: 10/25/2026

Money Laundering Fines and Penalties in UAE

AML compliance is mandatory for financial institutions, Designated Non-Financial Businesses and Professions (DNFBPs), Virtual Asset Service Providers and other entities subject to the applicable AML requirements in the UAE. Under Article 17 of Federal Decree-Law No. 10 of 2025, supervisory authorities can impose administrative fines of AED 10,000 to AED 5,000,000 for each violation, alongside warnings, restrictions or suspension of activities, measures against responsible managers and licence revocation. Article 39 requires the Cabinet to issue a resolution prescribing violations and administrative penalties. Separately, Articles 26–36 provide for criminal penalties and related measures imposed by the courts.

The UAE government monitors the AML compliance and has set up a specialised unit to investigate the control of DNFBPs, dealers in precious metals and stones, auditors, real estate agents and brokers, etc., as such businesses and professionals are prone to money laundering and corruption. 

Let’s know the different fines and penalties applicable in the UAE for violating AML rules and regulations.

1. Administrative Penalties a Supervisor Can Impose

Under Article 17 of Federal Decree-Law No. 10 of 2025, a supervisory authority may impose the following administrative penalties on a financial institution, DNFBP, VASP or NPO under its supervision for breaching the law, its Executive Regulations or decisions issued in connection with them:

A warning.
An administrative fine of AED 10,000 to AED 5,000,000 for each violation.
A ban on operating in the sector concerned for a period determined by the supervisory authority.
Restrictions on the powers of board members, executive, supervisory or managerial personnel, or owners proven responsible for the violation, including the appointment of a temporary supervisor.
Suspension of directors, board members or executive or supervisory personnel proven responsible for the violation for a period determined by the supervisory authority, or a request for their replacement.
Suspension or restriction of the activity or profession for a period determined by the supervisory authority.
Revocation of the licence.

These powers do not affect any more severe administrative sanction available under other legislation. The supervisory authority may also require periodic reports on measures taken to remedy the violation, impose an increased administrative fine if the same violation recurs within one year from the date the previous administrative fine was imposed, and publish the administrative penalties through various media outlets.

2. The DNFBPs Violation Schedule

For DNFBPs supervised by the Ministry of Economy and Tourism or the Ministry of Justice, Cabinet Resolution No. 71 of 2024 sets out a schedule of 41 violations, with administrative fines ranging from AED 50,000 to AED 1,000,000, depending on the violation. It replaced Cabinet Resolution No. 16 of 2021. Examples include failures to carry out required customer due diligence, assess and document money laundering and terrorist financing risks, appoint a compliance officer, and promptly report suspicious transactions to the Financial Intelligence Unit. Article 5(2) permits the Ministry to double the fine for a repeated violation. Separately, Article 17(3) of Federal Decree-Law No. 10 of 2025 permits an increased administrative fine where the same violation recurs within one year from the date the previous administrative fine was imposed.

3. Criminal penalties under Federal Decree-Law No. 10 of 2025

Money laundering (individual): Imprisonment for 1 to 10 years and a fine of AED 100,000 to AED 5,000,000, or an amount equal to the value of the relevant criminal property, whichever is greater (Article 26(1)).
Aggravated money laundering: Temporary imprisonment and a fine of AED 1,000,000 to AED 10,000,000, or twice the value of the relevant criminal property, whichever is greater. Aggravating circumstances include abuse of professional authority or influence, committing the offence through an NPO or an organised criminal group, certain predicate offences, and recidivism (Article 26(2)).
Terrorist financing: Life imprisonment or temporary imprisonment of at least 10 years, together with a fine of AED 1,000,000 to AED 10,000,000, or twice the value of the relevant criminal property, whichever is greater (Article 26(3)).
Proliferation financing: Temporary imprisonment and a fine of AED 1,000,000 to AED 10,000,000, or twice the value of the relevant criminal property, whichever is greater (Article 26(4)).
Legal persons, including companies: A fine of AED 5,000,000 to AED 100,000,000, or the value of the relevant criminal property, whichever is greater, where representatives, directors or agents commit money laundering, terrorist financing or proliferation financing on the entity’s behalf or in its name. For offences under Articles 28, 29, 30, 32, 33, 34 and 35 committed in these circumstances, the fine is AED 200,000 to AED 10,000,000. Following a conviction for terrorist financing or proliferation financing, the court must order the company’s dissolution and the closure of its premises, and may do so following a conviction for money laundering (Article 27(1)–(4)).
Breaching suspicious transaction reporting obligations: Deliberate or grossly negligent breaches of Article 18, including failure to report suspicious transactions, are punishable by imprisonment, a fine of AED 100,000 to AED 1,000,000, or both (Article 28).
Tipping off: Prohibited disclosures concerning suspicious transactions or related inquiries or investigations are punishable by imprisonment, a fine of at least AED 50,000, or both (Article 29(1)). If the conduct prevents seizure of proceeds or causes their destruction or loss of value, the penalty is imprisonment for at least one year and a fine equal to the value of the proceeds, subject to a minimum of AED 100,000 (Article 29(3)).
Breaching Targeted Financial Sanctions instructions: Breaching instructions issued by the Executive Office or another competent authority concerning Targeted Financial Sanctions is punishable by imprisonment, a fine of at least AED 20,000, or both (Article 33).

AML Fines and Penalties in UAE

The UAE government has clearly classified each violation of AML rules and regulations and clearly defined the fines for them. So it’s essential to follow the AML laws and keep the business AML compliant at all times to avoid penalties. It is necessary to conduct AML/ CFT Health Check, create the Annual AML/ CFT Assessment Report and follow the AML / CFT Policy Controls and Procedures Documentation. AML Training helps to sync with the latest AML guidelines and train the employees about the diligence process and identifying suspicious transactions and financial activities.

The AML software selection will help choose the best software that will assist in AML compliance. It would be best to contact a reliable AML consultant to access a wide range of AML compliance services and avoid the risk of non-compliance. AML UAE is one of the best AML consultants working diligently in the compliance field and serving thousands of businesses in the UAE to be AML compliant.

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About the Author

Pathik Shah

FCA, CAMS, CISA, CS, DISA (ICAI), FAFP (ICAI)

Pathik is an ACAMS-certified AML consultant specialising in governance, risk, and compliance for regulated entities in the UAE. He brings over 28 years of experience, with 1,000+ hours of AML training and 200+ advisory engagements across DNFBPs, VASPs, and FIs. He supports businesses in aligning with AML/CFT requirements from the CBUAE, DFSA, MoET, MoJ, VARA, CMA, FSRA, and FATF. Known for translating complex regulations into audit-ready procedures, Pathik enables operational clarity and compliance readiness.