Does legal professional privilege exempt lawyers from AML reporting in the UAE?
Only in a narrow, defined situation. The UAE AML law carves out lawyers, notaries, other legal professionals and independent legal auditors from the suspicious transaction reporting duty where the relevant information was obtained under circumstances subject to professional secrecy, such as ascertaining a client’s legal position or defending them in litigation. The exemption protects genuine legal advice and advocacy, not commercial or transactional work.
This means privilege does not cover situations where a lawyer is being used, knowingly or not, to help plan or carry out a transaction that launders money. When a firm handles client funds, forms companies or executes property deals, those activities generally fall outside the privilege and reporting duties apply. Firms should document why they treated a matter as privileged so the position can be defended if a supervisor questions it.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 18(2) - limits the reporting exemption to information obtained under professional secrecy.
· Federal Decree-Law No. 10 of 2025, Article 21(1)(b) - recognises legal professional privilege in the context of international cooperation.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.