A law firm that breaches its AML obligations can face a graduated range of administrative penalties imposed by its supervisory authority. These run from a written warning through fines and restrictions on the business, up to suspension or revocation of the licence in serious cases.
Under UAE AML law the administrative fine can range from AED 10,000 to AED 5,000,000 for each violation, and repeat breaches within a year can attract an incremental fine. The supervisor can also restrict the powers of partners or managers, suspend individuals responsible for the breach, restrict the activity, or publish the penalty. Separately, failing to report a genuine suspicion of money laundering can carry criminal liability for the firm and the individuals involved. The message is that AML compliance is not a paperwork exercise; breaches carry commercial and personal consequences.
Legal Reference (UAE):
· Federal Decree-Law 10/2025, Article 17 — sets out administrative penalties from AED 10,000 to AED 5,000,000 per violation.
· Ministry of Justice — supervisory authority that imposes penalties on law firms.
For more details, consult the full text of Federal Decree-Law 10/2025 or seek guidance from your AML compliance officer.