Laws on Money Laundering in Dubai

Anti-Money Laundering (AML) Efforts in Dubai, UAE

The Financial Action Task Force (FATF) AML Law was implemented to enhance the UAE's capacity to detect and combat financial crimes. In this article, you will learn about the most current anti-money laundering rules and sanctions in Dubai, UAE.

Federal Laws on Anti-Money Laundering and Combating the Financing of Terrorism

Federal Decree-Law No. (20) of 2018 on AML, CFT, and Financing of Illegal Organizations specifies the conditions under which anti-money laundering regulations are enforced in the UAE.

Article 2(1) of the law states that anyone who intentionally participates in any of the following acts, knowing that the money is the proceeds of a felony or misdemeanor, is liable for the crime of money laundering.

• Conducting any transaction to transfer, move, or conceal the proceeds of an illicit source.
• The true source, location, or nature of the funds, as well as their use, movement, ownership, or rights related to these proceeds, must be concealed.
• Acquiring, possessing, or using the funds upon receipt.
• Assisting the perpetrator of the predicate offense to evade punishment.

Money laundering is considered a separate crime. The penalty for the predicate offense will not protect the offender from the penalty for the crime of money laundering. The unlawful source of the funds does not need to be proven before the perpetrator of the predicate offense is convicted.

Furthermore, in Article 3 of Federal Law No. 3 of 1987;

• Any of the acts listed in Article 2(1) of the current Decree-Law is a crime if the person knows that the proceeds belong wholly or partly to a terrorist organization, a terrorist, or are for the purpose of financing terrorism, even if there is no intent to hide or conceal their illegal origins.
• A person who, being aware of their true motives or purposes, engages in such activities on behalf of a terrorist organization or a terrorist individual, or who collects, prepares, provides, or facilitates the acquisition of proceeds for their use.

Penalties for Money Laundering

Any person found guilty of money laundering activities in the UAE will be sentenced to imprisonment for a term of at least one year and no more than ten years, according to Article 22 of the Anti-Money Laundering Law. With the Laws Regarding Money Laundering in Dubai, the offender may also be punished with fines ranging from AED 100,000 to AED 5,000,000, or with both a penalty and imprisonment.

The penalties will be more severe if the offender exploits the influence or authority granted by their profession, if the crime is committed through a non-profit organization or an organized crime syndicate, or if the crime is committed by a repeat offender. In certain cases, temporary imprisonment (up to 15 years) and fines between AED 300,000 and AED 10,000,000 are possible penalties.

Deportation of Foreign Offenders

According to experienced and knowledgeable lawyers and legal consultants in Dubai, from one of Dubai's top law firms, under Article 29/1 of the Anti-Money Laundering Law, foreigners who violate the AML Law and are sentenced to imprisonment for their actions will be deported from the UAE.

However, under Article 29/2 of the Anti-Money Laundering Law, the court may order the deportation of a foreign national in addition to or instead of a prison sentence if the person has committed a misdemeanor (a crime punishable by up to three years in prison).

It is also very important to remember that the statute of limitations does not cover crimes involving money laundering.

The laws in the UAE are strict to combat money laundering issues. This is where the authorities have established a rigid framework designed to develop and implement these measures to ensure that everyone complies with the law and no one escapes justice.

Laws Regarding Money Laundering in Dubai