What is counter-proliferation financing and who must comply in the UAE?
Counter-proliferation financing (CPF) is the set of measures that prevent funds and financial services from supporting the proliferation of weapons of mass destruction and their delivery systems, and from breaching related sanctions. In the UAE it sits alongside anti-money laundering and counter-terrorist financing in the same legal framework, reflected in the full title of Federal Decree-Law No. 10 of 2025, which covers money laundering, terrorism financing, and proliferation financing.
Every financial institution, DNFBP, and virtual asset service provider must comply. Federal Decree-Law No. 10 of 2025 Article 19 requires them to identify, assess, and manage their risks, including proliferation financing risk, and apply risk-based controls. Cabinet Resolution No. 74 of 2020 imposes the targeted financial sanctions duties, including freezing the funds of designated parties without delay under Article 15. Entities should carry out a proliferation financing risk assessment, screen against sanctions lists, train staff on red flags, and report through goAML where required. Supervisors expect specific, documented controls rather than reliance on general AML measures.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 19: identify, assess, and manage risks including proliferation financing.
· Cabinet Resolution No. 74 of 2020, Article 15: targeted financial sanctions freezing duty.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.