What is the penalty for failing to report a suspicious transaction in the UAE?
Failing to report a suspicious transaction is a criminal offence under Federal Decree-Law No. 10 of 2025. The reporting duty itself requires financial institutions, designated non-financial businesses and professions, and virtual asset service providers to notify the Financial Intelligence Unit without delay whenever they suspect, or have reasonable grounds to suspect, that a transaction or funds are linked to a crime.
Anyone who deliberately or through gross negligence breaches that reporting obligation is punishable by imprisonment and a fine of not less than one hundred thousand dirhams and not exceeding one million dirhams, or by either penalty. This criminal exposure sits alongside the administrative penalties a supervisory authority may impose, which range from warnings and fines up to licence revocation. The combination underlines that suspicious transaction reporting is a core obligation: entities should maintain clear escalation procedures and train staff so that suspicions reach the compliance officer and the Unit promptly.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 28 — penalty for breaching the reporting obligation.
· Federal Decree-Law No. 10 of 2025, Article 18 — duty to report suspicious transactions.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.