What is the penalty for failing to file an STR in the UAE?
Failing to report a suspicious transaction is a criminal offence. Federal Decree-Law No. 10 of 2025 Article 28 provides that whoever, deliberately or through gross negligence, violates the reporting obligation in Article 18 faces imprisonment and a fine of not less than AED 100,000 and not more than AED 1,000,000, or either penalty. The duty applies to financial institutions, DNFBPs, and virtual asset service providers alike.
Beyond the criminal penalty, supervisory authorities can impose administrative fines and other measures for reporting failures, and non-registration on goAML carries its own penalties. Because the standard includes gross negligence, an entity cannot escape liability simply by claiming it did not actually know; weak monitoring that should have detected the suspicion can still trigger the offence. This is why entities invest in transaction monitoring, staff training, and clear escalation paths to the compliance officer.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 18: obligation to report suspicious transactions.
· Federal Decree-Law No. 10 of 2025, Article 28: fine of AED 100,000 to AED 1,000,000 for breach of Article 18.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.