Anti-Money Laundering (AML)
Compliance in UAE
Introduction about AML Compliance
What is Anti-Money Laundering (AML)?
procedures designed to prevent criminals from disguising illegally
obtained funds as legitimate income, and to combat the financing of
terrorism (CFT) and proliferation financing (CPF).
In the UAE, AML is governed by Federal Decree-Law No. 20 of 2018
on Anti-Money Laundering and Combating the Financing of Terrorism,
along with Cabinet Decision No. 10 of 2019. The framework is supervised by the Executive Office for AML/CFT, the Central Bank of
UAE (CBUAE), the Ministry of Economy, SCA, DFSA, and FSRA.
Scope of AML/CFT in UAE
AML/CFT obligations will apply to:
- All Financial Institutions (FIs) licensed in the UAE — onshore and in financial free zones (DIFC, ADGM).
- All DNFBPs as defined under Cabinet Decision No. 10 of 2019 (real estate, dealers in precious metals, auditors, corporate services, legal consultants).
- Virtual Asset Service Providers (VASPs) regulated by VARA in Dubai, SCA, or FSRA in ADGM.
- Non-Profit Organisations (NPOs) and charitable entities operating in the UAE.
- Government-owned entities conducting commercial activities that fall within the scope of the AML law.
Key Supervisory Authorities:
- Executive Office for AML/CFT — National coordinator, reports to the UAE Cabinet.
- Financial Intelligence Unit (FIU) — Central agency that receives and analyses STRs / SARs.
- CBUAE (Central Bank) — Supervises banks, exchange houses, insurers, finance companies.
- Ministry of Economy (MOE) — Supervises DNFBPs and maintains the goAML portal.
- SCA, DFSA, FSRA, VARA — Supervise securities firms, DIFC entities, ADGM entities, and virtual assets respectively.
AML does not apply to:
- Transactions between related entities within the same licensed group that are not part of regulated activities.]
- Employment income, government salaries, and social security payments.
- Low-risk transactions explicitly exempted under simplified Customer Due Diligence (CDD), subject to documented risk assessment.
- Purely internal bookkeeping entries with no customer-facing transactional element.
VAT REGISTRATION DEADLINE
Register within 20 business days of crossing the mandatory threshold.
Any business must apply to register for VAT with the Federal Tax Authority (FTA) within 20 business days of crossing the mandatory registration revenue threshold of AED 375,000. Businesses with taxable supplies of at least AED 187,500 may also apply for voluntary registration.
Late Registration Penalty
- AED 10,000
Book for Corporate
Tax registration Service
Toll Free Number
800 TAX24
Email us
heelo@tax24.ae
Whatsapp Chat
+971561620954
VAT Registration Criteria:
Mandatory Registration — AED 375,000
Required if your total taxable supplies and imports in the UAE exceeded AED 375,000 in the past 12 months, or are expected to exceed it in the next 30 days.
Voluntary Registration — AED 187,500
Optional if your taxable supplies and imports, or taxable expenses, exceeded AED 187,500 in the past 12 months (minimum revenue threshold).
20 Business Days Deadline
Application must be submitted to the FTA within 20 business days from the date the mandatory threshold is crossed.
Non-Resident Businesses
Must register for VAT regardless of turnover if they make any taxable supplies in the UAE where no other person is required to account for the VAT.
Tax Group Registration
Two or more related legal persons resident in the UAE may apply to register as a single VAT group.
Late Registration Penalty — AED 10,000
A fixed administrative penalty of AED 10,000 is imposed for failure to register within the specified timeframe.
Required Documents
Valid Trade License, Emirates ID & Passport of owner/shareholders, MOA/POA, authorised signatory details, bank account (IBAN), customs registration (if applicable), and 12-month turnover declaration.
The 6 Pillars of UAE AML Compliance
01
Enterprise-Wide Risk Assessment
Document a risk-based assessment of your customers, products, delivery channels, and jurisdictions. Refresh annually or on material change.
02
Board-approved policy manual covering CDD, EDD, sanctions screening, record-keeping, STR/SAR reporting, and whistleblower protections.
03
MLRO Appointment
Designate a qualified Money Laundering Reporting Officer (MLRO) / Compliance Officer with direct reporting to senior management.
04
KYC & Customer Due Diligence
Identify & verify customers, UBOs (≥25% ownership), PEPs, and sanctions exposure. Apply Enhanced Due Diligence for high-risk relationships.
05
Ongoing Monitoring & Reporting
Screen transactions & customers against UN, UAE Cabinet, and OFAC sanctions lists. File STR / SAR on goAML without delay when suspicious.
06
Training & Independent Audit
Annual AML training for all staff (documented). Independent AML audit at least every 2 years to test the control framework.
Administrative Penalties
for Non-Compliance
| Violation | Administrative Fine |
|---|---|
| Failure to register on the goAML portal | AED 50,000 (first time) — up to AED 1,000,000 |
| Failure to implement written AML/CFT policies & procedures | AED 50,000 – AED 200,000 |
| Failure to appoint a qualified Compliance Officer / MLRO | AED 50,000 – AED 100,000 |
| Failure to conduct Customer Due Diligence (CDD) or keep CDD records | AED 50,000 – AED 1,000,000 |
| Failure to file a Suspicious Transaction Report (STR/SAR) | AED 100,000 – AED 1,000,000 |
| Failure to conduct sanctions screening against UN/UAE lists | AED 50,000 – AED 5,000,000 |
| Dealing with a sanctioned party (targeted financial sanctions breach) | Up to AED 50,000,000 + criminal liability |
| Failure to maintain records for 5 years (minimum retention period) | AED 50,000 – AED 200,000 |
AML Compliance Packages
End-to-end AML/CFT support for DNFBPs and financial institutions in the UAE —
from goAML registration through annual audit.
AML Starter
Features:
- goAML & SACM registration
- Business Risk Assessment (BRA) template
- Basic AML Policy & Procedure manual
- UBO Declaration filing assistance
+ Upgrade Available:
with MLRO outsourcing
AML Essentials
Features:
- goAML & SACM registration
- Tailored Business Risk Assessment (BRA)
- Full AML/CFT Policy & Procedure Manual
- KYC / CDD forms & templates
- Annual AML training (1 session, up to 10 staff)
- UBO Declaration filing
+ Upgrade Available:
with outsourced MLRO
AML Enterprise
Features:
- goAML & SACM registration
- Enterprise-wide Risk Assessment
- Board-approved AML/CFT Policy Manual
- Outsourced MLRO service (annual)
- Sanctions screening system setup
- Quarterly AML training for all staff
- Independent AML audit (bi-annual)
+ Upgrade Available:
with transaction
monitoring software
Monthly MLRO
Retainer
Features:
- Dedicated outsourced MLRO
- Monthly compliance review
- STR / SAR filing assistance on goAML
- Sanctions screening support
- Regulatory correspondence handling
Quarterly
Compliance Review
Features:
- Quarterly AML health check
- KYC/CDD file review (sample)
- Policy & procedure refresh
- Training refreshers for staff
- Regulatory circular summaries
Annual AML
Audit
Features:
- Independent AML/CFT audit report
- Control effectiveness testing
- Gap analysis & remediation plan
- Management letter & board presentation
- Readiness for MOE / CBUAE inspections
Monthly MLRO
Retainer
Features:
- Dedicated outsourced MLRO
- Monthly compliance review
- STR / SAR filing assistance on goAML
- Sanctions screening support
- Regulatory correspondence handling
Quarterly
Compliance Review
Features:
- Quarterly AML health check
- KYC/CDD file review (sample)
- Policy & procedure refresh
- Training refreshers for staff
- Regulatory circular summaries
Annual AML
Audit
Features:
- Independent AML/CFT audit report
- Control effectiveness testing
- Gap analysis & remediation plan
- Management letter & board presentation
- Readiness for MOE / CBUAE inspections
UBO Declaration
& Filing
Features:
- UBO determination (≥25% threshold)
- UBO register preparation
- Filing with licensing authority
- Annual UBO refresh
Sanctions
Screening Setup
Features:
- UN, UAE & OFAC list integration
- Real-time screening tool deployment
- Alert handling workflow
- Escalation & documentation templates
AML Training &
Workshops
Features:
- Role-based AML training programs
- Red flag indicator workshops
- STR/SAR drafting masterclass
- Certificates of completion
Book for Corporate Tax Registration Services
Email us:
heelo@tax24.ae
Whatsapp Chat:
+971561620954
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Find quick answers to common questions about our technology apps,
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feature.
What is a “Business” or “Business Activity”?
Who is considered resident for UAE CT purposes?
Companies incorporated in the UAE, such as LLCs, PSCs, PJSCs, and other juridical entities, will be classified as resident persons for Corporate Tax (CT) purposes.
How are non-residents subject to UAE CT?
Who will be subject to UAE CT?
What is a Tax Period?
Companies incorporated in the UAE, such as LLCs, PSCs, PJSCs, and other juridical entities, will be classified as resident persons for Corporate Tax (CT) purposes.