The United Arab Emirates (UAE) has established itself as a leading financial hub, making Anti-Money laundering (AML) compliance a critical priority for businesses across sectors. With growing global scrutiny from the Financial Action Task Force (FATF) and the UAE’s commitment to international standards, AML laws in the UAE 2025 are stricter, more comprehensive, and more actively enforced than ever before.
This guide explains the current AML legal framework, obligations for companies, and the steps organizations must take to stay compliant in 2025.
The Legal Framework for AML in the UAE
The foundation of Anti-Money laundering laws in the UAE is set out under Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT Law), supported by Cabinet Decision No. 10 of 2019.
In 2025, the UAE continues to build on this framework with enhanced regulatory guidance and sector-specific rules. The AML obligations apply not only to banks and financial institutions but also to Designated Non-Financial Businesses and Professions (DNFBPs) such as:
- Real estate companies
- Dealers in precious metals and stones
- Auditors and accountants
- Trust and company service providers
- Law firms and notaries
Additionally, Virtual Asset Service Providers (VASPs) licensed under the Virtual Assets Regulatory Authority (VARA) are bound by strict AML rules.
Key AML Laws and Requirements in 2025
Businesses in the UAE must comply with the following AML requirements:
- Customer Due Diligence (CDD)
Firms must verify the identity of their clients, understand the nature of their business, and conduct enhanced due diligence on high-risk customers, including Politically Exposed Persons (PEPs). - Suspicious Transaction Reporting (STRs)
Any suspicious activity must be promptly reported to the UAE Financial Intelligence Unit (FIU) through the GoAML platform. - Record Keeping
Companies must maintain financial and transaction records for at least five years to ensure traceability. - Risk Assessments
Regular AML risk assessments are required to evaluate exposure to money laundering and terrorist financing risks. - AML Training
Employees must undergo regular Anti-Money laundering and counter-terrorist financing training to stay updated on laws and reporting obligations. - Appointment of a Compliance Officer / MLRO
Every regulated business must appoint a Money Laundering Reporting Officer (MLRO) or Compliance Officer responsible for implementing AML policies and filing reports.
Regulatory Bodies Overseeing AML in the UAE
Several authorities oversee AML compliance in the UAE, including:
- Central Bank of the UAE – for banks, finance companies, and exchange houses.
- Ministry of Economy – for DNFBPs such as real estate, precious metals, and auditors.
- Securities and Commodities Authority (SCA) – for capital markets.
- Dubai Financial Services Authority (DFSA) – for entities in DIFC.
- Abu Dhabi Global Market (ADGM) – for entities regulated in ADGM.
- Virtual Assets Regulatory Authority (VARA) – for Virtual Asset Service Providers in Dubai.
Penalties for Non-Compliance in 2025
AML violations in the UAE carry heavy consequences. Under the AML-CFT Law, penalties include:
- Fines ranging from AED 50,000 to AED 5 million
- Suspension or cancellation of business licenses
- Freezing of funds or assets
- Criminal liability, including imprisonment for willful breaches
The UAE has already imposed multi-million-dirham fines on financial institutions and DNFBPs for AML failures, and in 2025, enforcement continues to intensify.
Why AML Compliance Matters in 2025
With the UAE being removed from the FATF “grey list” in 2024, maintaining robust Anti-Money laundering compliance in 2025 is crucial for:
- Protecting business reputation
- Avoiding financial penalties
- Ensuring access to global financial markets
- Building trust with clients and regulators
Conclusion
AML laws in the UAE 2025 reflect the country’s strong stance against financial crime and commitment to global compliance standards. Whether you operate in banking, real estate, or virtual assets, implementing effective Anti-Money laundering policies is no longer optional—it is a legal necessity.
By strengthening compliance frameworks, conducting regular risk assessments, and ensuring proper staff training, businesses can stay ahead of regulatory requirements and safeguard their operations in one of the world’s most dynamic markets.
Contact Affiniax for expert consultancy in AML compliance. Be compliant, be safe!
