What is a predicate offence under UAE money laundering law?
A predicate offence is the underlying crime that generates the illicit proceeds later laundered. Money laundering under Federal Decree-Law No. 10 of 2025 arises when a person knows, or there are sufficient indications to believe, that funds are the proceeds of a predicate offence and then converts, transfers, conceals, acquires, uses or helps disguise those proceeds.
UAE law adopts a broad, all-crimes approach, so a wide range of underlying offences, from fraud and bribery to drug trafficking and tax crimes, can serve as predicates. Importantly, the offender need not have committed the predicate offence themselves. Understanding the predicate concept helps compliance teams calibrate risk, because certain predicate crimes and the sectors exposed to them warrant enhanced scrutiny and, where appropriate, enhanced due diligence.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 2(1) — defines money laundering by reference to proceeds of a predicate offence
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.