How are politically exposed persons treated under UAE AML law?
Politically exposed persons are treated as higher-risk customers requiring enhanced measures on top of standard customer due diligence. For foreign PEPs, regulated entities must have risk management systems to determine whether a customer or beneficial owner is a PEP, obtain senior management approval before starting or continuing the relationship, take reasonable measures to identify the source of funds and wealth, and conduct enhanced ongoing monitoring.
For domestic PEPs and persons entrusted with a prominent function in an international organisation, entities must take adequate measures to determine whether the customer or beneficial owner falls within these categories, and apply the same enhanced measures where the relationship is high risk. Life insurance providers must also take reasonable steps to identify whether a beneficiary or its beneficial owner is a PEP before paying out, and escalate to senior management where higher risks arise. PEP status usually extends to family members and close associates.
Legal Reference (UAE):
ยท Cabinet Resolution No. 134 of 2025, Article 16 - enhanced measures for foreign and domestic PEPs.
For more details, consult the full text of the Executive Regulations or seek guidance from your AML compliance officer.