Do UAE businesses need a licence before carrying out financial or DNFBP activities?

UAE
,
1

Yes. No natural or legal person may carry out financial activities, designated non-financial business and profession activities, or virtual asset service provider activities without first obtaining a licence, registration or enrolment from the competent authority or the relevant supervisory authority. Operating without that authorisation is prohibited.

The requirement is backed by criminal sanction. A person who breaches this licensing rule faces imprisonment and a fine of not less than AED 200,000 and up to AED 10,000,000, or either penalty. This makes proper licensing the entry point to the AML regime: only once a business is authorised does it come under supervision and take on its due diligence, reporting and record-keeping duties. Anyone launching a regulated activity in the UAE should confirm the correct supervisory authority and complete licensing or registration before onboarding a single customer.

Legal Reference (UAE):

For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.

A guide to anti-money laundering laws in the UAE

3

Yes. Article 20 prohibits any natural or legal person from engaging in financial activities, DNFBP activities, or virtual asset service provider activities without obtaining a licence, registration or enrolment from the competent authority or the relevant supervisory authority.

Operating without that authorisation is a criminal offence, not merely a licensing irregularity. It is punishable by imprisonment and a fine of not less than AED 200,000 and not more than AED 10,000,000, or either penalty. Where a legal person commits the offence through its representatives, directors or agents, the fine runs from AED 200,000 to AED 10,000,000.

Legal Reference (UAE):

· Federal Decree-Law No. 10 of 2025, Article 20: licence, registration or enrolment required before carrying on financial, DNFBP or virtual asset activity.

· Federal Decree-Law No. 10 of 2025, Article 32: imprisonment and a fine of AED 200,000 to AED 10,000,000 for breach of Article 20; Article 27(2): the legal person fine.

For your own circumstances, check your internal AML policy or speak to your compliance officer.

AML consulting services