What is proliferation financing under UAE AML law?
Proliferation financing is the provision or collection of funds, by any means and directly or indirectly, with knowledge that they will be used to manufacture, acquire, develop, produce, supply, export, transport, store or use weapons of mass destruction, their means of delivery, or related materials, including dual-use goods and technologies when used for those purposes. It also covers acts contrary to relevant United Nations Security Council resolutions on preventing and suppressing proliferation and its financing.
The 2025 UAE AML law expressly brings proliferation financing within the AML/CFT framework, placing it alongside money laundering and terrorist financing. Regulated entities must therefore assess and mitigate proliferation financing risk, and where higher risk is identified they must adopt enhanced internal controls to detect and prevent the circumvention of targeted financial sanctions. Knowledge, as an element of the offence, may be inferred from the objective circumstances.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 3(3) - defines the proliferation financing offence.
· Cabinet Resolution No. 134 of 2025, Article 5(4) - proportionate measures to manage proliferation financing risk.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.