Can the UAE FIU suspend a suspicious transaction, and for how long?
Yes. The new UAE AML law gives the Head of the Financial Intelligence Unit the power to order the cessation or temporary suspension of any transaction suspected of being related to a money laundering, terrorist financing or proliferation financing crime. This suspension can last for a period not exceeding ten working days and may be imposed without prior notice.
The Unit bases such an order on its analysis of suspicious transaction reports, or on information and requests received from domestic or international sources, including counterpart financial intelligence units. This transaction suspension power sits alongside the separate power to freeze funds for up to thirty days, and the two measures serve different purposes: suspension halts a specific transaction quickly, while freezing immobilises funds already held.
Regulated entities must be able to act on a suspension order at once and should not proceed with the transaction while the order is in effect. The Unit maintains a system setting out the controls and procedures for imposing and later lifting such suspensions.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 5(1) — allows the FIU to suspend a suspicious transaction for up to ten working days.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.