The UAE has taken a significant step forward in strengthening its fight against financial crime with the introduction of Federal Decree-Law No. 10 of 2025. This major update enhances the national AML–CFT–Proliferation Financing (PF) framework and marks the most comprehensive reform since 2018.
Designed to align with FATF international standards, the new law introduces tighter governance, stronger regulatory expectations, and tougher penalties for regulated entities—particularly Financial Institutions (FIs), Designated Non-Financial Businesses and Professions (DNFBPs), and Virtual Asset Service Providers (VASPs).
Overview of the New UAE AML–CFT–PF Law 2025
The UAE continues to strengthen its position as a trusted global financial hub. Federal Decree-Law No. 10 of 2025 reflects the country’s commitment to transparency, risk mitigation, and robust compliance.
The reform aims to:
- Improve national and international cooperation
- Address emerging financial crime threats
- Strengthen oversight of virtual assets
- Close gaps in existing AML–CFT controls
Key Changes Under Federal Decree-Law No. 10 of 2025
Proliferation Financing Introduced as a Standalone Offence
For the first time, PF is recognized as a distinct offence, enabling regulators and law enforcement agencies to better target risks associated with weapons of mass destruction (WMD) and related financial networks.
Full AML Regulation for Virtual Asset Service Providers (VASPs)
VASPs are now subject to the same AML/CFT obligations as financial institutions, including:
- Customer Due Diligence (CDD)
- Enhanced Due Diligence (EDD) for high-risk clients
- Suspicious Transaction Reporting (STR)
- Ongoing monitoring
- Sanctions screening
This strengthens oversight of virtual assets and reduces risks of anonymity-based financial crimes.
Expanded Powers Granted to the UAE FIU
The UAE Financial Intelligence Unit (FIU) now has greater authority to:
- Freeze funds for up to 30 days
- Suspend or block suspicious transactions
- Exchange intelligence more effectively with global counterparts
These enhancements aim to increase agility in responding to high-risk cases.
Enhanced UBO and Beneficial Ownership Requirements
The law introduces:
- Stricter UBO reporting
- Mandatory accuracy and timely updates
- Heavier penalties for missing, incorrect, or outdated UBO records
The update aims to eliminate opaque ownership structures and shell-company misuse.
New Corporate and Personal Penalties for Non-Compliance
The UAE has significantly increased enforcement measures, including:
- Fines up to AED 100 million
- License suspension or revocation
- Imprisonment for serious violations
- Dissolution of repeat-offending entities
This sends a strong message about the importance of financial crime compliance.
What the Updated AML Framework Means for UAE Businesses
Every regulated entity—banks, real estate brokers, accountants, auditors, lawyers, trust service providers, gold/jewellery traders, and now VASPs—must reassess their compliance programmes.
Strengthening AML and PF Risk Assessments
Businesses must review and update:
- Enterprise-wide AML risk assessments
- PF-specific risk frameworks
- Virtual asset risk controls
Improving Sanctions and Watchlist Screening
Stricter expectations mean organizations must ensure:
- Real-time sanctions screening
- Screening of beneficial owners
- Enhanced monitoring for high-risk jurisdictions
Updating Internal Governance and Reporting
Compliance functions should revise:
- Internal AML policies
- Escalation procedures
- Suspension and freezing mechanisms
- STR/SAR reporting protocols
Enhancing AML Training and Staff Awareness
All staff—especially onboarding, client-facing, and operations teams—must receive updated training on PF, virtual assets, and the new obligations under the 2025 law.
Why the 2025 AML Reform Strengthens the UAE’s Global Position
This reform positions the UAE as:
- A secure and transparent financial hub
- A jurisdiction aligned with FATF recommendations
- A leader in regulating virtual assets and combating PF risks
- A trusted partner for international cooperation
Strengthened AML–CFT–PF laws boost investor confidence, reduce regulatory vulnerabilities, and reinforce the UAE’s commitment to financial stability.
Need Support? Our Compliance Experts at Affiniax Can Help
Navigating Federal Decree-Law No. 10 of 2025 requires updated policies, stronger governance, and clear internal controls.
If your organisation needs support with:
- AML policy drafting or upgrades
- Risk assessments and gap analysis
- Virtual asset compliance
- UBO documentation
- MLRO/Compliance Officer outsourcing
- Staff AML/CFT/PF training
Our specialists at Affiniax Partners can provide end-to-end advisory, implementation, and regulatory alignment to ensure your business remains fully compliant.
