Is tax evasion a predicate offence for money laundering in the UAE?

UAE
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1

Yes. Tax evasion is expressly named as a predicate offence in the UAE anti-money laundering framework. The definition of a predicate offence in the 2025 decree-law covers any felony or misdemeanour and specifically lists the evasion of both direct and indirect taxes.

The practical effect is that proceeds derived from concealing or under-declaring tax, whether the underlying evasion happened inside or outside the UAE, can be treated as criminal property capable of being laundered. For regulated businesses this reinforces the need to understand a customer’s source of wealth and source of funds, and to be alert to arrangements that appear structured to disguise taxable income. Unexplained wealth or opaque cross-border flows may warrant enhanced due diligence and, where suspicion arises, a report to the Financial Intelligence Unit.

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.

Predicate offences and money laundering

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Yes. The definition of predicate offence in Article 1 expressly includes the evasion of direct and indirect taxes, alongside any other act constituting a felony or misdemeanour.

Two consequences follow. Proceeds of tax evasion can found a money laundering charge in the UAE, and where the evasion occurred abroad it can still serve as a predicate offence provided the act is punishable in both countries. For regulated businesses this means tax irregularity is not a matter to be treated as outside the AML perimeter: unexplained structuring around tax residence, or a customer’s reluctance to explain a tax position, is properly a money laundering red flag and not merely a tax question.

Legal Reference (UAE):

· Federal Decree-Law No. 10 of 2025, Article 1: Predicate Offence expressly includes evasion of direct and indirect taxes, subject to dual criminality.

· Federal Decree-Law No. 10 of 2025, Article 18(1): the reporting duty where funds are suspected to be proceeds of any felony or misdemeanour.

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

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