What administrative penalties can UAE supervisory authorities impose for AML breaches?
Separate from criminal prosecution, supervisory authorities can impose administrative penalties on financial institutions, DNFBPs, virtual asset service providers and non-profit organisations that breach the AML law, its Executive Regulations or related decisions. Under Federal Decree-Law No. 10 of 2025 these penalties range from a formal warning to an administrative fine of not less than AED 10,000 and not more than AED 5 million for each violation.
Authorities may also prohibit the violator from operating in the relevant sector, restrict the powers of board members or executives, suspend or replace responsible personnel, suspend or restrict the activity, and ultimately revoke the licence. Fines can be increased for repeat violations within a year, and the authority may publish the penalties imposed. This graduated toolkit lets supervisors respond proportionately while creating strong incentives for entities to remediate deficiencies quickly.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 17 — sets out the administrative penalties available to supervisory authorities
· National Committee (NAMLCFTC) — national AML/CFT coordination
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.
Separate from criminal prosecution, supervisory authorities can impose administrative penalties on financial institutions, DNFBPs, virtual asset service providers and non-profit organisations that breach the AML law, its Executive Regulations or related decisions. Under Federal Decree-Law No. 10 of 2025 these penalties range from a formal warning to an administrative fine of not less than AED 10,000 and not more than AED 5 million for each violation.
Authorities may also prohibit the violator from operating in the relevant sector, restrict the powers of board members or executives, suspend or replace responsible personnel, suspend or restrict the activity, and ultimately revoke the licence. Fines can be increased for repeat violations within a year, and the authority may publish the penalties imposed. This graduated toolkit lets supervisors respond proportionately while creating strong incentives for entities to remediate deficiencies quickly.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 17 — sets out the administrative penalties available to supervisory authorities
· National Committee (NAMLCFTC) — national AML/CFT coordination
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.