How long can the UAE Financial Intelligence Unit freeze funds without a court order?
Under the new UAE AML law, the Head of the Financial Intelligence Unit may order the freezing of funds suspected of being related to a money laundering, terrorist financing or proliferation financing crime for a period not exceeding thirty days. The order can be issued without prior notice and is based on the Unit’s analysis of suspicious transaction reports and other information it receives.
This is a significant expansion of the Unit’s powers. The freezing period can be extended further by order of the Attorney General or their delegate. Financial institutions, designated non-financial businesses and professions, and virtual asset service providers must lift the freeze once the Unit cancels the order or the thirty-day period expires, unless it has been extended.
In practice, regulated entities should have a clear internal process to action a freezing instruction from the Unit immediately, to preserve the frozen funds, and to avoid tipping off the customer while the measure is in place.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 5(2) — empowers the Head of the FIU to freeze suspected funds for up to thirty days, extendable by the Attorney General.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.